This report form the Bazelon Center for Mental Health Law discusses options that states have to cover public-sector mental health services through Medicaid dollars. Through exploring new policies from the Centers for Medicare and Medicaid, states can continue to fund additional services to support this community.

From the report:

Medicaid is the single most important funding stream for the community mental health services of public mental health systems. Understanding how the program can be used to support a range of community services that aid people in their recovery is therefore critical.

Over the past 15 to 20 years, state and local mental health systems have actively pursued policies to cover public-sector community mental health services under Medicaid. As a result, services that were previously 100 percent state-funded are now jointly funded by the federal and state governments through Medicaid. This is an effective state strategy because Medicaid pays for a broad array of services and covers low-income populations and people with disabilities—groups that often rely on publicsector services.

Full Report: Following the Rules: A  Report on Federal Rules and State Actions to Cover Community Mental Health Services under Medicaid (PDF | 634 KB)

Bazelon. (2010). Following the rules: a report on federal rules and state actions to cover community mental health services under Medicaid.