North Carolina Delays Launch Of Medicaid Behavioral Health & I/DD Tailored Plans

The North Carolina Department of Health and Human Services (Department) is delaying implementation of the Medicaid Behavioral Health and Intellectual/Developmental Disabilities (I/DD) Tailored Plans. The state had intended to launch these specialized Medicaid plans by October 1, 2023. A new launch target has not been announced.

The Tailored Plans are intended for about 160,000 Medicaid beneficiaries with complex behavioral health conditions, intellectual/developmental disabilities (I/DD) and traumatic brain injury (TBI). Their behavioral and physical health needs are often significant, requiring ongoing care from multiple providers. These beneficiaries will continue to be served by the state’s regional behavioral health Local Management Entities/Managed Care Organizations (LME/MCOs).

In late February 2023, when the Department made the decision to delay to October 1, leadership identified three key areas that needed more work to ensure a smooth transition. First, that the LME/MCO provider network and technical capability readiness needed to improve; second, that the Department had the appropriate legal tools to ensure the well-being and safety of beneficiaries if an LME/MCO is failing to provide services; and third, that the LME/MCOs were focused on providing services for the populations they are best positioned to manage successfully.

While gaps remain in provider networks, progress has been made by the LME/MCOs on technical capabilities. The Department has been working collaboratively with the legislature to achieve the necessary tools to administer the Tailored Plans on par with other managed care plans, but they are still a work in progress. Further, uncertainty with the state budget, which will fund transformation costs and rebase for the Medicaid program, creates additional needs for launching Tailored Plans. Because it remains uncertain as to when those issues will be fully resolved, the Department is announcing the delay in Tailored Plans now but is not able to announce a certain go-forward date at this time.

Beneficiaries who will be covered by the Tailored Plans will continue to receive behavioral health, I/DD, TBI and physical health care as they do today. North Carolina’s unique Tailored Care Management model, which launched December 1, 2022, will continue to support beneficiaries by providing a care team to coordinate care across providers.  Additionally, on July 1, 2023, the LME/MCOs began to provide 1915(i) services to offer an array of home and community based (HCBS) services to Medicaid beneficiaries with serious mental health diagnoses, severe substance use disorders, intellectual/developmental disabilities and traumatic brain injuries.

This was reported by North Carolina Department of Health and Human Services on July 11, 2023, at https://www.ncdhhs.gov/news/press-releases/2023/07/11/launch-behavioral-health-and-intellectualdevelopmental-disabilities-tailored-plans-delayed (accessed July 14, 2023).

Contact information: North Carolina Department of Health and Human Services, 101 Blair Drive, Adams Building, 2001 Mail Service Center, Raleigh, North Carolina 27699-2001; 919-855-4840; Email: news@dhhs.nc.gov; Website: https://medicaid.ncdhhs.gov/Behavioral-Health-IDD%20Tailored-Plans

The Coming I/DD Demographics

By Monica Oss, Chief Executive Officer, OPEN MINDS

The State of Florida recently announced their plan to create a pilot program for Medicaid managed care for individuals with intellectual/developmental disabilities (I/DD). The Florida Senate passed a bill mandating the Florida Agency for Health Care Administration (AHCA) to create the pilot program by January 31, 2024 in two regions of the state that encompass Miami-Dade, Monroe, Hardee, Highlands, Hillsborough, Manatee, and Polk counties (see Florida To Pilot Medicaid Managed Care For Individuals With I/DD In 7 Counties).

This will make Florida the ninth state with a Medicaid managed care pilot program for I/DD (see The I/DD Service Landscape: An Executive Briefing & Market Discussion). This is in addition to the ten states with statewide Medicaid managed care for managed long-term services and supports (MLTSS) for the I/DD population. Currently, approximately 15% of the I/DD consumers on Medicaid receive their MLTSS services through a managed care plan, and 47% receive their health benefits through a Medicaid health plan.

From a spending perspective, there was an estimated $74 billion in public sector spending for I/DD services in 2021 (see The State Of The States In Intellectual And Developmental Disabilities: 2017). Total Medicaid long-term services and supports (LTSS) expenditures for the population was $46.3 billion (see Medicaid Services For People With Intellectual Or Developmental Disabilities – Evolution Of Addressing Service Needs & Preferences).

Where people with ID/DD who are recieving services live, 2017

But this level of spending represents a small portion of the population. There are a little over seven million people in the U.S. with an intellectual or developmental disability (see People With IDD In The United States). But it is estimated that only 22% or 1.6 million people were known to their state developmental disabilities agency—and participate in Medicaid. This is consistent with recent data that found that 72% of people with an I/DD live at home and/or with family (see Medicaid Services For People With Intellectual Or Developmental Disabilities – Evolution Of Addressing Service Needs & Preferences).

These demographics are likely to change spending and spending patterns. The life expectancy for people with I/DD has increased with the rest of the population, with the mean age of death ranging from the mid-50s (for those with more severe disabilities or Down syndrome) to the early 70s for adults with mild/moderate I/DD (see The Influence Of Intellectual Disability On Life Expectancy and Mortality And Morbidity Among Older Adults With Intellectual Disability: Health Services Considerations). As a result, the number of adults with I/DD age 60 years and older is projected to nearly double from 641,860 in 2000 to 1.2 million by 2030 (see People with Intellectual And Developmental Disabilities Growing Old).

In addition, of the 72% of consumers with I/DD living at home and/or with family, 24% reside with caregivers aged 60 years and older (see Caregiving, Intellectual Disability, And Dementia: Report Of The Summit Workgroup On Caregiving And Intellectual And Developmental Disabilities). Another 38% live with caregivers aged 41 to 59 years. Most of these families receive few support services—estimated at roughly 115,000 families nationally (see People With Intellectual And Developmental Disabilities Growing Old).

It is not surprising that states are rethinking their Medicaid LTSS footprint for serving consumers with an I/DD. Last year, the State of Texas rebid its Medicaid managed care program and included an I/DD pilot (see Texas Medicaid Rebids STAR+PLUS Managed Care Plans For Members With Disabilities, Includes I/DD Pilot). Tennessee has created a new initiative for children in the custody of the state with an I/DD to move them from hospitals to residential services (see Tennessee DIDD Partners With DCS To Provide Residential Care For Hospitalized Children).

Rhode Island is considering integrated MLTSS in its Medicaid managed care procurement (see Rhode Island Medicaid Planning To Integrate Managed Long-Term Services & Supports In New Procurement Expected Fall 2023). But at the same time, the long-planned North Carolina Medicaid integrated care model for consumers with I/DD and serious mental illness (SMI) was indefinitely postponed (see North Carolina Delays Launch Of Medicaid Behavioral Health & I/DD Tailored Plans).

The reason for the state interest in new models for financing and service reimbursement is that greatest burden of this demographic shift is going to fall on state governments. The number of people on Medicaid home and community-based services (HCBS) waiting lists (for all reasons) fluctuated between 2016 and 2021, from 656,000 in 2016 to 820,000 in 2018, and back to 656,000 in 2021 (see A Look At Waiting Lists For Home And Community-Based Services From 2016 To 2021). And the primary reason cited for the waiting lists is state funding issues (see State Management Of Home- And Community-Based Services Waiver Waiting Lists). This is an emerging problem that calls for creative solutions in expanding the community-based support system for these consumers—an opportunity for the entrepreneurial provider organization.

For more resources on the I/DD market and long-term services and supports, see these resources in the OPEN MINDS Industry Library:

And for even more join me on August 16 for The 2023 OPEN MINDS I/DD Executive Summit in Long Beach. Some of the case study presenters include:

  • Marco Damiani, MA, BS, ABD, Chief Executive Officer, AHRC New York City
  • Sarah Chestnut, MSW, Director, Development Strategies, Benchmark Human Services
  • Amy Jacobs-Schroeder, BCABA, Chief Executive Officer, Happy Ladders
  • Patrick Maynard, Ph.D., President and Chief Executive Officer, I Am Boundless
  • Virginia Gabby, Executive Director, Merakey
  • Scott Doolan, RN BSN, MBA, Assistant Vice President of Health Care Management, Partners Health Plan
  • Michelle Mainez, Chief Operations Officer, Redwood Family Care Network

Indiana To Pilot Manufacturing-Focused Supported Employment For I/DD

Indiana is planning a supported employment pilot program for people with intellectual/developmental disabilities (I/DD) that will focus on placements at manufacturing facilities; however, a start date has not been set. The pilot is authorized by Indiana House Bill 1160, which was signed on May 4, 2023.

The pilot would focus on two populations:

  • Individuals with I/DD.
  • Current workers who are identified to fill higher paying jobs due to increased workforce participation by people with I/DD.

The bill provides that the FSSA, in consultation with Erskine Green Training Institute and the Department of Workforce Development, can establish a manufacturing workforce training program pilot to provide training and other services. Erskine Green Training Institute, in Muncie, is a postsecondary vocational training program for people with disabilities. The institute was developed by The Arc of Indiana Foundation.

The legislation permits the Indiana Commission for Higher Education (CHE) to make grants to state educational institutions to employ education and career coaches, provide education partnership grants to adult students, and to provide for administrative and other costs and services allowed by the CHE. The grants may not be used for tuition costs. The bill does not make an appropriation, but it allows the CHE to pursue grants from available sources for the pilot program.

A link to the full text of “Indiana House Bill 1160” is in the OPEN MINDS Circle Library at https://openminds.com/market-intelligence/resources/051123insb1160enrolled/.

For more information, contact: Marni Lemons, Acting Communications Director, Indiana Family and Social Services Administration, 402 West Washington Street, W461, Indianapolis, Indiana 46204; 317-234-5287; Fax: 317-233-4693; Email: Marni.Lemons@fssa.IN.gov; Website: https://www.in.gov/fssa/

Dutchess Community College In New York Launches I/DD Direct Support Professional Microcredential Program

Dutchess Community College (DCC) is launching a grant-funded, three-tiered “microcredential” program to credential direct support professionals caring for people with intellectual/developmental disabilities (I/DD). The program is intended to advance statewide efforts to retain and grow New York’s direct support workforce for people with I/DD. The first cohort will start classes on August 28, 2023.

The credential program aligns with national certification standards set forth by the National Alliance for Direct Support Professionals (NADSP). In addition to earning one or more national certifications, students receive college credit that can be applied toward a certificate and/or associate degree in DCC’s Human Services program.

For this program, DCC partnered with the New York State Office for People With Developmental Disabilities (OPWDD) and the State University of New York (SUNY). The grant funding will cover student tuition, books, course materials, NADSP credentialing and educational supports. Participants who successfully complete one of the microcredentials are eligible for a one-time $750 incentive.

This was reported by Dutchess Community College on July 31, 2023, at https://www.sunydutchess.edu/about/facts/news/articles/dsp.html (accessed August 1, 2023).

Contact information: Lacie Reilly, MPS, Chair, Human Services, Dutchess Community College, Taconic Hall 309, 53 Pendell Road, Poughkeepsie, NY 12601; 845-431-8349; Email: lacie.reilly@sunydutchess.edu; Website: https://www.sunydutchess.edu/academics/programs/human-services/direct-support-professional.html

Florida To Pilot Medicaid Managed Care For Individuals With I/DD In 7 Counties

The Florida Medicaid program is preparing to pilot Medicaid managed care for adults with intellectual/developmental disabilities (I/DD). The pilot would integrate medical care and home- and community-based services (HCBS). The pilot is a provision of Florida Senate Bill 2510, a broad health care bill signed on June 15, 2023. It directs the Florida Agency for Health Care Administration (AHCA) to create the pilot program by January 31, 2024, in two regions that encompass Miami-Dade, Monroe, Hardee, Highlands, Hillsborough, Manatee, and Polk counties. The goal is to evaluate the feasibility of implementing a statewide capitated managed care model with actuarially sound rates specifically developed for the population of beneficiaries with I/DD.

By September 1, 2023, AHCA is required to seek federal approval to implement the pilot program. AHCA will administer the pilot in consultation with the Florida Agency for Persons with Disabilities (APD), which administers Medicaid waiver-funded HCBS for people with I/DD through the APD iBudget waiver program. A summary of the legislation noted that Florida does not use a risk-based managed care model for HCBS services, and the Medicaid acute care managed care model is rarely used by iBudget enrollees. Medicaid acute care services and HCBS services are not integrated or coordinated by any single entity for the individual enrollee.

AHCA will be responsible for selecting Medicaid managed care organizations (MCOs) to participate in the pilot, making capitated payments to the MCOs, and evaluating the feasibility of statewide implementation of the model. APD will be responsible for approving a needs assessment methodology to determine functional, behavioral, and physical needs of prospective enrollees.

The legislation calls for AHCA to issue an invitation to negotiate for the pilot, with the goal of selecting one MCO per pilot region. To be eligible for an award, bidders must hold a current MCO contract with AHCA for the Statewide Medicaid Managed Care Long-Term Care (SMMC LTC) Program. The selected MCOs will receive a capitated payment with actuarially sound rates specifically developed for the population of beneficiaries with I/DD.

The selected MCOs will be required to cover all current state plan Medicaid benefits and HCBS waiver benefits including community-based support services and residential habilitation, respite care, supported employment, supported living coaching, and transportation. The MCOs must have contracts with provider organizations for personal supports, skilled nursing, residential habilitation, adult day training, mental health services, respite care, companion services, and supported employment, as those services are included in the iBudget waiver.

AHCA will submit a status report to the legislature by December 31, 2023. The status report will focus on progress made toward gaining federal approval of the waiver or waiver amendment needed to implement the pilot. By December 31, 2024, AHCA will submit a status report on the pilot implementation. By December 31, 2025, and annually each year after, AHCA will report on the pilot program operations to include enrollment, complaints, and access to covered services.

By October 1, 2029, AHCA will submit an evaluation report to the legislature. The evaluation will report on metrics established in consultation with APD to monitor access, quality, and costs of the pilot program. The evaluation must assess cost savings; consumer education, choice, and access to services; plans for future capacity and enrollment of new Medicaid provider organizations; coordination of care; person-centered planning and person-centered well-being outcomes; health and quality-of-life outcomes; and quality of care. The evaluation must describe any administrative or legal barriers to the implementation and operation of the pilot program in each region.

A link to the full text of “Florida Senate Bill 2510” is in the OPEN MINDS Circle Library at https://openminds.com/market-intelligence/resources/050923flsb2510enrolled/.

OPEN MINDS last reported on the state’s managed care landscape in “Florida Rebids Medicaid Managed Care Contracts,” which published on May 5, 2023, at https://openminds.com/market-intelligence/news/florida-rebids-medicaid-managed-care-contracts/.

For more information, contact:

Woods Services Launches ‘Woods Healthcare’ Community Health Clinics For People With I/DD

On May 18, 2023, Woods System of Care announced the launch of Woods Healthcare, with three community outpatient centers located at its headquarters in Langhorne, Pennsylvania. The three centers are: The Center for Behavioral Health at Woods; The Medical Center at Woods; and Penn Dental Medicine at Woods. The three centers initially opened to serve consumers served by Woods and to serve Woods employees, but are now open to any individual in the community with intellectual/developmental disabilities (I/DD), autism, and emotional and behavioral challenges. The new outpatient centers are the realization of six years of effort to transform Woods into a population health management organization.

The Center for Behavioral Health at Woods opened in May 2023 to provide behavioral services for all ages. It also provides comprehensive autism evaluations for children aged 12 months through 18 years. The center’s convenient 6 day schedule is complemented by telehealth and telepsychiatry options. Private pay is available, and the center anticipates obtaining in-network status soon with Pennsylvania Medicaid HealthChoices and Behavioral HealthChoices managed care organizations (MCOs). It also participates in New Jersey Medicaid, Medicare, and private plans.

The Medical Center at Woods opened in June 2018. It provides outpatient primary care services for people ages six through adulthood diagnosed with I/DD, autism, or emotional and behavioral challenges. In April 2023, the Medical Center was awarded Recognition by the National Committee for Quality Assurance (NCQA) Patient-Centered Medical Home Program and is the first to be recognized with a specialty in I/DD. The Center is accepting new patients and is in-network with private insurers and Pennsylvania Medicaid HealthChoices MCOs, and Medicare. It also participates in New Jersey Medicaid.

Penn Dental Medicine at Woods, Mikey Faulkner Dental Care Center opened in early 2023 to provide dental care for individuals of all ages. For this center, Woods partnered with the University of Pennsylvania School of Dental Medicine, which, through the vision of Dean Mark Wolff, DDS, specializes in oral health care for people with I/DD. The Dental Center program and clinic space provide extra comfort to those with a varying range of disabilities, with features such as specially-appointed operatories with advanced equipment as well as a quiet space for those needing a lower-stimulation environment. The Dental Center team is seeing new consumers daily and is in-network with most private dental insurers and Pennsylvania Medicaid HealthChoices MCOs. It also participates in New Jersey Medicaid.

In addition, a fourth service location is planned. Woods created a partnership with New Jersey-based RWJBarnabas Health and Rutgers University Behavioral Health Care to create a new integrated primary care and behavioral health clinic. The clinic is slated to open in spring of 2024 at Robert Wood Johnson University Hospital Hamilton in Hamilton, Mercer County, New Jersey.

Woods System of Care, a Pennsylvania- and New Jersey-based population health management organization and healthcare network that provides support services for individuals with intellectual/developmental disabilities (I/DD), autism and mental health conditions across their lifespan. With its nine affiliate organizations, Woods Services has formed the Woods System of Care which provides innovative, comprehensive, and integrated primary, behavioral and dental health care, plus specialty and allied health care. The system also provides education, housing, workforce, nursing and case management services. The Woods System of Care serves more than 22,000 children and adults with I/DD, and/or mental health disorders who also have complex and intensive medical and behavioral health care needs.

In 2016, Woods appointed Tine Hansen-Turton as President and CEO, leveraging her extensive health care experience to lead the organization’s transformation into a population health management organization and the system of care which it is today. Ms. Hansen-Turton said, “In order to reshape Woods into its current cutting-edge model, we put emphasis on expanding our extraordinary team of top health care thought leaders. This transformation has enabled us to fully realize an integrated care model which takes into account physical and behavioral health needs, and addresses all of the social determinants of health.”

The organization’s transformation to become a system of care is documented in Thriving Through Transformation: A Practical Guide to Creating Organizational Change in the Social Sector, which was released in January 2023. It can be downloaded at https://www.woods.org/wp-content/uploads/2023/01/Thriving-Through-Transformation-FINAL-for-website.pdf.

For more information, contact: Tine Hansen-Turton, President and Chief Executive Officer, Woods System of Care, Post Office Box 36, Langhorne, Pennsylvania 19047-0036; 215-801-3272; Email: tine@woods.org; Website: https://www.woods.org/woods-services/wsoc/

Adjoin Launches Path-Now, A Mobile App & Service Provider Network For Individuals I/DD In California

Non-profit Adjoin launched Path-Now, a new, accessible mobile application that enables California residents with intellectual/developmental disabilities (I/DD) to safely and easily connect with community service provider organizations. Path-Now quickly matches users to service provider organizations that meet their unique needs and preferences. The Path Now program is currently available in California with listings for 8,000 service provider organizations and the team has plans to expand rapidly to other states.

Path-Now allows individuals with IDD or their care provider to create a free profile in the application and specify the types of service(s) needed and their provider preferences. The application then instantly matches them with organizations that align with their preferences. Users can then connect with their chosen organizations directly within Path-Now to move forward in accessing needed services.

The Path-Now service provider network includes vocational programs, independent living services, transportation options, camps and recreational activities, art programs, and more. Organizations that provide services for individuals with IDD in California can claim their profile in Path-Now or request to have a profile created. Once requests are received, reviewed, and approved by Path-Now, organizations choose a subscription plan and can review and update information in relevant fields, including uploading photos and videos and gaining access to the Path-Now chat feature.

Adjoin is a social service nonprofit 501(c)(3) organization that helps people find communities where they feel safe and respected and can be themselves in every aspect of their lives. With the support of its dedicated staff, partnerships, and volunteers, the company has created over 32,000 unique pathways for people with disabilities and veteran families to belong where they live, work, learn, and play throughout California.

This was reported by Adjoin on May 24, 2023, at https://www.businesswire.com/news/home/20230524005016/en (accessed June 5, 2023).

Contact information: Taylor Sotiropoulos, Business Development Manager, Path Now, Adjoin, 9444 Farnham Street, Suite 210, San Diego, California, 92123; 858-292-2020; Email: taylor.sotiropoulos@path-now.com; Website: https://adjoin.org/contact

340 CCBHCs In Operation In U.S.; Majority Provide Services Outside Clinic Location

As of March 2021, 340 Certified Community Behavioral Health Clinics (CCBHCs) were in operation across 40 U.S. States, Guam, and the District of Columbia. About 93% of CCBHCs provide services outside of the physical clinic space.

The CCBHC demonstration program was a provision of the federal, bipartisan Protecting Access to Medicare Act (PAMA) of 2014. The CCBHC model launched in 2017 with 66 clinics across eight demonstration states. Two more states joined the CCBHC demonstration in March 2020. Another 32 states have clinics that were awarded CCBHC expansion grants from the federal Substance Abuse and Mental Health Services Administration (SAMHSA).

In the 10 demonstration states, the state Medicaid program pays the CCBHCs a clinic-specific daily or monthly prospective payment to reimburse for the expected cost of the demonstration services. Since 2018, Congress has appropriated parallel grant funding that SAMHSA awards directly to local provider organizations to become CCBHC grantees, many of which are county-based mental health and addiction treatment provider organizations. In the expansion states, the grantees receive traditional Medicaid fee-for-service payments for state plan services, and the grant funding covers additional costs.

All CCBHCs, demonstration or grantees, provide a comprehensive range of evidence-based behavioral health services directly or through referral to designated collaborating organizations (DCOs). All CCBHC clinics must provide access to person- and family-centered services for individuals with serious mental illness or addiction, including opioid disorders; children and adolescents with serious emotional disturbance; and individuals with co-occurring disorders. CCBHCs provide the following nine core services:

  1. Crisis services
  2. Screening, assessment, and diagnosis; includes risk assessment
  3. Person-centered treatment planning
  4. Outpatient mental health and addiction treatment services
  5. Primary care screening and monitoring of key indicators/health risk
  6. Targeted case management
  7. Psychiatric rehabilitation services
  8. Peer support and family supports
  9. Community-based mental health care for active-duty military members and veterans

About 93% of CCBHCs provide services outside of physical clinic space through formalized partnerships with non-health entities within a county or region. In the past 12 months, CCBHCs offered services in the following “other” locations:

  • 78% provide services in consumer homes.
  • 47% provide school-based services.
  • 33% provide services in courts, police offices, and other justice-related facilities.
  • 20% provide services on-site at community service organizations and other non-profit organization locations.
  • 11% provide services in homeless shelters.

These findings were reported in “Certified Community Behavioral Health Clinics And County Governments, March 2021: A National Model Tailored For Local Mental Health And Substance Use Care” by the National Council for Behavioral Health and the National Association of Counties. The report outlines the tenets of the CCBHC model, which aligns federal funding with a care model founded on person-centered treatment, care coordination and integration, evidence-based practice, timely access to services (including 24/7 crisis response) and the flexibility to deliver support outside the four walls of the clinic. The authors discussed how counties can leverage the CCBHC model to address key policy priorities around mental health including: expanding access to addiction treatment and strengthening the local response to the opioid crisis, serving more people, and reducing wait times for treatment.

The full text of “Certified Community Behavioral Health Clinics And County Governments, March 2021: A National Model Tailored For Local Mental Health And Substance Use Care” was published April 6, 2021, by the National Council for Behavioral Health and the National Association of Counties. A free copy is available online at https://www.naco.org/sites/default/files/documents/032421_CCBHCs_CountyGovernments_v2.pdf (accessed April 16, 2021).

OPEN MINDS last reported on this topic in “SAMHSA Accepting Applications For CCBHC Expansion Grants,” which published on March 5, 2020. The article is available at https://openminds.com/market-intelligence/news/samhsa-accepting-applications-for-ccbhc-expansion-grants/.

For more information, contact: Rebecca Farley David, Senior Advisor, Public Policy & Special Initiatives, The National Council for Behavioral Health, 1400 K Street Northwest, #400, Washington, District of Columbia 20005; 202-684-3735; Email: rebeccad@thenationalcouncil.org; Website: https://www.thenationalcouncil.org/

Evaluation Of The Eight Original CCBHC Demonstration States Reveals Mixed Results

Of the eight states participating in a time-limited demonstration to establish certified community behavioral health clinics (CCBHC), the evaluation data is mixed. The eight states participating in the CCBHC demonstration that started in mid-2017 were Minnesota, Missouri, Nevada, New Jersey, New York, Oklahoma, Oregon, and Pennsylvania. During fiscal years 2017 through 2019, the eight states reported about $1.2 billion in Medicaid CCBHC expenditures, with federal expenditures of about $900 million, and state expenditures of about $300 million.

Officials in five of the eight demonstration states—Minnesota, Missouri, New Jersey, New York, and Oregon—reported generally increased state spending on CCBHCs, which officials from these states attributed to an increased number of individuals receiving treatment, an increased array of services provided, or both. In contrast, officials from Nevada, Oklahoma, and Pennsylvania did not report that the demonstration resulted in greater state spending.

In addition, four of the eight states —Missouri, New York, Oklahoma, and Oregon—assessed potential cost savings from the demonstration resulting from reductions in the use of more expensive care, such as emergency department visits. Officials from Missouri, New York, and Oklahoma viewed the results of their assessments as suggestive of potential cost savings, while officials from Oregon did not.

  1. Minnesota’s demonstration started July 1, 2017. Six CCBHCs participated.
  2. Missouri’s demonstration started July 1, 2017. Fifteen CCBHCs participated.
  3. Nevada’s demonstration started July 1, 2017. Three CCBHCs participated.
  4. New Jersey’s demonstration started July 1, 2017. Seven CCBHCs participated.
  5. New York’s demonstration started July 1, 2017. Thirteen CCBHCs participated.
  6. Oklahoma’s demonstration started April 1, 2017. Three CCBHCs participated.
  7. Oregon’s demonstration started April 1, 2017. Twelve CCBHCs participated.
  8. Pennsylvania demonstration started July 1, 2017. Seven CCBHCs participated.

The CCBHC demonstration was a provision (Section 223) of the Protecting Access to Medicare Act, which was signed into law on April 1, 2014. The eight states participating in the CCBHC demonstration were among 24 that were awarded a one-year planning grant in October 2015 by the federal Substance Abuse and Mental Health Services Administration (SAMHSA). In the eight states, 66 provider organizations became CCBHCs, a new Medicaid provider organization type that was eligible to receive a daily or monthly fixed rate prospective payment in exchange for providing nine core outpatient, community-based behavioral health services for adults, children, and families. The core services could be delivered by the CCBHC entity directly or through formal partnerships with other provider organizations. The nine core CCBHC services are as follows:

  1. Crisis mental health services, including 24-hour mobile crisis teams, emergency crisis intervention services, and crisis stabilization
  2. Screening, assessment, and diagnosis, including risk assessment
  3. Patient-centered treatment planning or similar processes, including risk assessment and crisis planning
  4. Outpatient mental health and substance use services
  5. Outpatient clinic primary care screening and monitoring of key health indicators and health risk
  6. Targeted case management
  7. Psychiatric rehabilitation services
  8. Peer support and counselor services and family supports
  9. Intensive, community-based mental health care for members of the armed forces and veterans, particularly those members and veterans located in rural areas, provided the care is consistent with minimum clinical mental health guidelines promulgated by the Veterans Health Administration, including clinical guidelines contained in the Uniform Mental Health Services Handbook of such Administration

These findings were reported in “Medicaid Behavioral Health: CMS Guidance Needed To Better Align Demonstration Payment Rates With Costs & Prevent Duplication” by the Government Accountability Office (GAO). The GAO described what states did to measure the effects of the CCBHC demonstration on quality of care, consumer health outcomes, and state spending on behavioral health services. The GAO also examined federal guidance on Medicaid CCBHC payments.

The GAO reviewed summary information and results from state assessments that states voluntarily undertook to examine the demonstration’s effects on state spending on behavioral health services. GAO also reviewed other relevant documentation describing state-related demonstration costs, spending, and planning, including information available on state and federal websites, such as budget documentation and state plan amendments. Between November 2020 and April 2021, GAO also interviewed officials from state Medicaid agencies, behavioral health agencies, or both from the eight demonstration states, as well as officials from three selected CCBHCs.

A link to the full text of “Medicaid Behavioral Health: CMS Guidance Needed To Better Align Demonstration Payment Rates With Costs & Prevent Duplication” may be found in the OPEN MINDS Circle Library at https://openminds.com/market-intelligence/resources/092321cmsmedicaidbhrates/.

OPEN MINDS last reported on this topic in “75 Behavioral Health Provider Organizations In 8 States Prepare For CCBHC Demonstrations,” which published on February 12, 2017. The article is available at https://openminds.com/market-intelligence/news/77-behavioral-health-provider-organizations-eight-states-participating-ccbhc-demonstration/.

For more information, contact: Carolyn L. Yocom, Director, U.S. Government Accountability Office, 441 G Street, Northwest, Room 7149, Washington, District of Columbia 20548; 202-512-7114; Email: yocomc@gao.gov; Website: http://www.gao.gov/

Michigan Launches CCBHC Demonstration

On October 1, 2021, the Michigan Department of Health and Human Services (MDHHS) program launched a two-year Certified Community Behavioral Health Clinics (CCBHC) Demonstration Program. MDHHS selected 13 provider organizations to become CCBHCs from the 14 named in its 2016 application, which included 11 Community Mental Health Services Programs (CMHSPs) and three non-profit behavioral health entities, together serving 18 Michigan counties. The 13 selected sites are eligible for full Medicaid reimbursement and a daily payment through the Medicaid prospective payment system (PPS), similar to that paid to federally qualified health centers.

Since 2018, 34 Michigan behavioral health provider entities have directly received $135 million in two-year CCBHC Expansion Grant awards from the U.S. Substance Abuse and Mental Health Services Administration (SAMHSA). The direct-to-grantee awards are intended to help immediately provide CCBHC services while preparing an entity for the state-based CCBHC program. Of the 34 sites funded by the SAMHSA grants, 10 sites are participating in the state’s CMS CCBHC demonstration. Until the CCBHC demonstration program started, the sites received Medicaid reimbursement for covered services and used federal grant or other funding to pay for non-Medicaid services.

The 13 organizations participating in the CCBHC demonstration receive a daily per-beneficiary/recipient, clinic-specific PPS rate based on the average expected daily cost to deliver core CCBHC services. The non-demonstration sites will continue with their previous reimbursement method. MDHHS anticipates roughly 100,000 Michigan residents will be served by the 13 sites (over 80% of which are estimated to be Medicaid beneficiaries). The 13 sites, and their PPS rates for the first demonstration year, are as follows:

  1. Community Mental Health and Substance Abuse Services of St. Joseph County: $292.62
  2. Community Mental Health Authority of Clinton, Eaton, and Ingham Counties: $373.07
  3. Community Network Services (Oakland County): $342.23
  4. Easter Seals (Oakland County): $327.63
  5. HealthWest (Muskegon County): $383.02
  6. Integrated Services of Kalamazoo (Kalamazoo County): $445.73
  7. Macomb County Community Mental Health: $338.01
  8. Saginaw County Community Mental Health Authority: $432.16
  9. Clair County Community Mental Health Authority: $332.37
  10. The Guidance Center (Wayne County): $478.53
  11. The Right Door (Ionia County): $384.14
  12. Washtenaw County Community Mental Health: $281.33
  13. West Michigan Community Mental Health (Lake, Mason, and Oceana Counties): $357.85

The 13 CCBHCs serve Medicaid beneficiaries and consumers with other types of health insurance. The state’s Medicaid managed care plans for physical health are not required to contract with the CCBHCs. The state’s 10 regional prepaid inpatient health plans (PIHPs) that manage the public behavioral health system for Medicaid and publicly funded behavioral health specialty services and supports are required to contract with the CCBHCs. The PIHPs administer supports and services for persons with serious mental illness, serious emotional disturbance, intellectual/developmental disabilities, and drug addiction. The PIHPs also directly manage SAMHSA Substance Abuse Block Grant funding and local substance addiction. For the CCBHC demonstration, MDHHS provides a capitated payment to the applicable PIHPs for CCBHC services and the PIHPs pay the PPS to the CCBHC demonstration sites for qualifying services.

The pilot project was authorized by the U.S. Centers for Medicare & Medicaid Services (CMS) under Section 223 of the Protecting Access to Medicare Act of 2014. MDHHS originally applied to CMS in 2016 to become a CCBHC Demonstration state. That request was approved on August 5, 2020 by virtue of the Federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) of 2020, adding Michigan and Kentucky to the CMS demonstration.

To see the latest on Michigan’s CCBHC demonstration, including information for both those servied, and for provider organizations, go to http://www.michigan.gov/CCBHC

A link to the full text of “MI CCBHC Demonstration — Final DY1 PPS-1 Rates by CCBHC Site” may be found in the OPEN MINDS Circle Library at https://openminds.com/market-intelligence/resources/100121miccbhcdemoppsrates/.

OPEN MINDS last reported on this topic in “Michigan & Kentucky Now Participating In CCBHC Demonstration,” which published on September 16, 2020. The article is available at https://openminds.com/market-intelligence/bulletins/michigan-kentucky-now-participating-in-ccbhc-demonstration/.

For more information, contact: Jon G. Villasurda Jr., MPH, State Assistant Administrator, Behavioral Health and Developmental Disabilities Administration, Michigan Department of Health and Human Services, 320 South Walnut Street, Elliot-Larsen Building, 5th Floor, Lansing, Michigan 48933; 517-230-9707; Email: villasurdaj@michigan.gov;  Website: http://www.michigan.gov/CCBHC

Editor’s note: the informational link for CCBHC updates was added on 11/15 per Mr. Villasurda.