This report from the Bazelon Center for Mental Health Law explores options for covering community-based psychiatric and case management services through Medicaid. It explains the need for these services in a comprehensive approach to behavioral health.

From the report:

This report describes how states have covered community-based psychiatric rehabilitation and case management services for adults under Medicaid. Its focus is on evidence-based interventions and services that support a recovery-focused system of community care.

The Medicaid service categories most germane to a recovery-focused community system are the optional services of rehabilitation and targeted case management. These options cover services needed by adults with serious mental illnesses who also have significant limitations in functional capacity to perform self-maintenance and occupational, educational and/or social roles in the absence of ongoing services. Appropriate coverage of services and activities under these two options helps them live and work in community settings of their choice.

Although clinical mental health treatment (including medication management, therapy and other services by mental health professionals and para-professionals) can be covered under Medicaid’s clinic option, clinical services are not the focus here.

Full Report: Recovery in the Community: Funding Mental Health Rehabilitative Approaches under Medicaid (PDF | 1.32 MB)

Bazelon. (2010). Recovery in the community: funding mental health rehabilitative approaches under Medicaid.