50% Of States Will Have Integrated Behavioral & Physical Health Medicaid Financing Models By 2020 – OPEN MINDS Releases 2018 State Medicaid Behavioral Health Carve-Out Report

Gettysburg, Pa. (January 21, 2018) — OPEN MINDS has announced the release of their highly anticipated 2018 update to the annual State Medicaid Behavioral Health Carve-Out report. The report findings indicate that over the next three to five years, there will be a significant uptake in the number of states with integrated behavioral health and physical health benefits—with more than 50% of states moving to this model by 2020.

Looking ahead, there are nine states with plans to change their financing of behavioral health in Medicaid—Arkansas, Arizona, Colorado, Florida, Maryland, North Carolina, Ohio, Virginia, and Washington. Through a detailed analysis of current state Medicaid financing models, the report found that as of January 1, 2018:

• 26 states have integrated financing of behavioral health in Medicaid health plans
• 3 states have vertical consumer-specific specialty health plans (with integrated behavioral health/ physical health benefits) for consumers with serious mental illness (SMI)
• 5 states have a primary carve-out to public care management organization (CMO)
• 6 states have a primary carve-out to private care management organization (CMO)

“This shift in how behavioral health benefits are being managed creates both an increase in complexity and an increase in opportunity for executives of provider organizations. To build an effective strategy, managers need to know the payers and health plans in their markets – and map out both the contracting models, payers, competitors, and other stakeholders,” said OPEN MINDS Executive Vice President Sarah C. Threnhauser. “Our annual carve-out update is always one of the most popular market intelligence reports because it gives executives a clear framework for the financing systems for complex consumers in their market.”

The report provides granular information about each state Medicaid program, as well as trends over time. Each section of this market intelligence update includes vital information for executive teams building a market strategy:

• “Medicaid Behavioral Health Financing Models, By State” provides an overview of the different financing models used in each state such as integrated financing, carve-outs, and vertical consumer-specific specialty plans.
• “Medicaid Behavioral Health Financing Arrangements, By Benefit Type” provides a reference guide to what entity is responsible for outpatient mental health, specialty mental health, inpatient psychiatric care, outpatient addiction treatment, mental health pharmacy, and general pharmacy.
• “State Medicaid Plans To Transition Behavioral Health Financing Arrangements” provides an outline of the plans for the nine states that will soon be changing their behavioral health benefits

State Medicaid Behavioral Health Carve-Outs: The OPEN MINDS 2018 Annual Update is available in full to all Premium and Elite members of the OPEN MINDS Circle. Access The OPEN MINDS 2018 Annual Update at: https://www.openminds.com/intelligence-report/state-medicaid-behavioral-health-carve-outs-the-open-minds-2018-annual-update.

The OPEN MINDS Circle is the largest and most-trusted information platform in the behavioral health and human service space. Members access content from our market intelligence team and partner organizations via daily email content and a 24/7 curated and searchable website library platform. Learn more about becoming an OPEN MINDS Circle member online at www.openminds.com/membership.

For additional questions and inquiries, please contact Sarah Threnhauser, Executive Vice President, OPEN MINDS at 717-334-1329 or sthrenhauser@openminds.com.

ABOUT OPEN MINDS

OPEN MINDS is an award-winning information source, executive education provider, and business solutions firm specializing in the behavioral health and human service field. For thirty years, we’ve been pioneers for change – helping organizations implement the transformational business practices they need to succeed in an evolving market with new policies and regulations.

OPEN MINDS is powered by a national team of experienced executives and subject matter experts with specific expertise and experience in markets of the health and human service field serving complex consumers. Our mission is to improve the quality of care for individuals with complex support needs by improving the effectiveness of those serving them – provider organizations, payer and insurance organizations, government agencies, pharmaceutical organizations, and technology firms. Learn more at www.openminds.com.