Substance Abuse & Mental Health Services Administration

CMHS Consumer Affairs E-News
November 27, Vol. 07-185

National Survey Examines How Medicaid Agencies Administer Mental Health Services

State Medicaid Agencies Take Varying Approaches in Administration of Mental Health Services

A new report released today by the Substance Abuse and Mental Health Services Administration's Center for Mental Health Services provides a state-by-state analysis of how Medicaid agencies are exercising their responsibilities for mental health services. Administration of Mental Health Services by Medicaid Agencies combines the results of a series of hour-long telephone interviews conducted in 2005-2006 with State Medicaid directors in all 50 states and the District of Columbia. The report explores how state Medicaid agencies are addressing the organization, funding, policy, management and data issues that arise from increased responsibility for mental health services.

Medicaid is now the primary payer of mental health services in the nation. This report, which was issued by the Survey, Analysis, and Financing Branch of CMHS, represents the first time that comprehensive information on how state Medicaid agencies administer these services has been systematically collected and analyzed.

Findings from the report indicate that states have taken varying approaches. Some states have chosen to have the Medicaid agency retain full administrative responsibility for all mental health services if they are funded with Medicaid dollars and provided to Medicaid enrollees. Other States have chosen to share those responsibilities in different ways with mental health or other agencies in the state. Findings from the report include:

• State Medicaid and mental health agencies are within the same umbrella agency in 28 States, most commonly health and human services, and are separate in 23 States.
• 40 States reported that their Medicaid agencies produce formal reports containing discrete data on Medicaid mental health utilization or expenditures, and in 27 States the mental health agency produces such reports.
• More than half of the Medicaid respondents said that Medicaid and mental health agencies collaborate frequently through internal and external meetings, public reports, or presentations to the legislature.

Administration of Mental Health Services by Medicaid Agencies is available on the Web at http://samhsa.gov/publications/allpubs/SMA07-4301/. Copies may be obtained free of charge from SAMHSA's National Mental Health Information Center at 1-877-SAMHSA-7 (1-877-726-4727). Request inventory number SMA-07-4228. For related publications and information, visit http://www.samhsa.gov/.

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The Center for Mental Health Services is a component of the Substance Abuse and Mental Health Services Administration, United States Department of Health and Human Services.