New York Legislation & Provider Organizations Propose Medicaid Behavioral Health Carve-Out

Legislation introduced in New York State proposes that the state remove community-based mental health and substance use disorder services from the state’s Medicaid managed care program, and reinstitute a fee-for-service (FFS) reimbursement model. Since 2015, managed care organizations (MCOs) have been responsible for arranging or ‘managing’ specialty behavioral health services—outpatient, residential, and rehabilitation. Before that date Medicaid behavioral health services were managed by the Office of Mental Health (OMH) and the Office of Addiction Services and Supports (OASAS) and reimbursed FFS.

The legislation is supported by the New York State Council for Community Behavioral Healthcare . . .