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States Leverage Medicaid Managed Care to Foster Behavioral Health Integration

Improving coordination and integration of physical and behavioral health services can improve health outcomes and is cost-effective, both in primary care settings for mild to moderate conditions and in community-based settings for people with more serious illness. Multi-pronged integration efforts designed to address differing levels of illness acuity are proliferating due to significant uptick in mental illness, suicide, and overdose deaths.  

In late 2024 NASHP conducted a scan of all state Medicaid contracts with managed care organizations (MCOs) and/or behavioral health organizations (BHOs).i We found that state efforts to leverage Medicaid managed care to improve integration of behavioral and physical health are both broad and deep. All 43 statesii that contract with MCOs and/or BHOs embedded strategies to foster better coordination and integration of these services into their contracts. Further, all 43 leveraged care coordination and quality provisions and most leveraged payment provisions toward these ends  

This managed care scan offers state officials concrete examples they could use to strengthen and refine their managed care partnerships to advance effective integration approaches.  

Explore the maps and chart below to see an overview of our findings as well as the complete data set. You can download the full set of source materials used and read our accompanying blog for deeper insights and context: 

Have insights or questions? Email Sandra Wilkniss.

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