Moving Toward Value-Based Payment for Medicaid Behavioral Health Services

Advancing innovations in health care delivery for low-income Americans

June 19, 2017

Moving Toward Value-Based Payment for Medicaid Behavioral Health Services

States, health plans, and providers are beginning to develop value-based payment (VBP) arrangements to pay for Medicaid behavioral health care services. VBP approaches shift the focus from traditional fee-for-servicesystems that pay for volume of services to alternative payment models that reward high-quality, cost-effective care. Many state Medicaid programs have developed VBP approaches to improve quality and slow cost growth for physical health services, but these advances have been slower to emerge in Medicaid behavioral health programs.

This brief, produced with support from the California Health Care Foundation, describes how five innovative states and their contracted Medicaid managed care organizationsare incorporating VBP arrangements into behavioral health programs. It explores key challenges in implementing VBP models in behavioral health settings related to quality measurement, provider capacity, oversight considerations, and privacy and data-sharing constraints. Lastly, it highlights considerations to help states advance these models.

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About Center for Health Care Strategies

The Center for Health Care Strategies (CHCS) is a nonprofit policy center dedicated to advancing innovations in health care delivery for low-income Americans. CHCS works with state and federal agencies, health plans, providers, and consumer groups to design programs that better serve high-need and high-cost populations.

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