Mental Health Carve-Out Announced

Governor Bill Richardson announced in early September that his administration will remove behavioral health services from Medicaid managed care no later than July 1, 2005.

Over the next year, a new service delivery system will be planned that will consolidate mental health and substance abuse services, whether paid for by Medicaid or by state funds, for children and adults.

These services are currently spread among the Human Services Department, the Department of Health, the Children, Youth and Families Department and the State Department of Education, and each agency will be involved in the planning effort.

The services could be coordinated and/or provided through a new state entity, or might be contracted out to a private provider.

Former Governor Gary Johnson gave responsibility for mental health services to private HMOs in 1996, over the nearly unanimous opposition of providers, advocates, consumers, family members and his own cabinet secretaries.

In a related development, HSD's Behavioral Health Steering Committee is recommending that the Medicaid benefit package for mental health services be significantly expanded to cover more community-based support services.

A subcommittee created as a result of memorials introduced by Sen. Mary Kay Papen and Rep. Gail Beam looked at the feasibility of a Medicaid waiver for community-based mental health services, but decided instead also to support the expansion of Medicaid coverage and services.