Increase follows Shapiro Administration’s increased investment and work to provide enhanced supports to county behavioral health systems.
Harrisburg, PA – The Pennsylvania Department of Human Services (DHS) today announced its intent to increase rates paid in its Behavioral HealthChoices program, which provides access to mental health, substance use disorder, and other behavioral health services for Medicaid recipients. Once approved by the federal Centers for Medicare and Medicaid Services (CMS), the new rates to the Behavioral HelathChoices (BHC) Managed Care Organizations (MCOs) will be retroactive to July 1, 2024 for their current 2024 contract agreements with DHS.
“Access to mental and behavioral health care is essential to our overall health and wellbeing. If we cannot get the care we need, our ability to participate in and engage fully in our responsibilities like work, school, and family will not be possible,” said DHS Secretary Val Arkoosh. “Maintaining access to care requires rates that reflect the cost of providing care, and this mid-year adjustment for Behavioral HealthChoices managed care organizations (BH-MCOs) is necessary to maintain a Medicaid program that meets our current needs and challenges, and helps Pennsylvanians continue to get the care they deserve.”
The increase to BH-MCO rates come following a mid-year review of managed care organizations’ enrollment and what services and supports beneficiaries are using the most. The increased rates, if approved by CMS, will support access to behavioral health care for Medicaid recipients and ensure these MCOs are better positioned to appropriately compensate providers working in the behavioral health field, ultimately helping to recruit and retain this critical workforce.
Governor Josh Shapiro has prioritized increasing funding for behavioral health services throughout the Commonwealth since taking office. In the first year of his Administration, Governor Shapiro worked with the General Assembly to secure $20 million for county behavioral health programs – agencies that last received new funding in 2008 and saw a cut in 2012. County behavioral health offices and local organizations are often the first point of contact for people needing services, and this overdue increase was essential in helping them respond to their community’s evolving needs.
The 2024-25 bipartisan budget built on the previous year’s budget investments by providing an additional $20 million for county mental health programs to continue a multi-year commitment to these programs – in total, county mental health programs are receiving $40 million more annually than they did before Governor Shapiro took office.
The Administration is also investing $5 million for crisis stabilization walk-in centers, which specifically support emergency behavioral health response that can save lives and make sure people experiencing a behavioral health crisis are quickly directed to appropriate care instead of going directly to an emergency room or risking unnecessary public safety involvement. This funding will be focused in geographic areas that may not have a center or need assistance to scale up existing resources.
Further, Pennsylvania’s Home and Community-Based Spending Plan – authorized under the Biden-Harris Administration’s American Rescue Plan Act – invested more than $100 million in our behavioral health workforce. The majority of funding supported recruitment and retention, with $4 million to help providers invest in equipment to expand use of telehealth, and more than $2 million to expand training, professional development, and peer support certification options across the field.
In addition, Governor Shapiro signed an executive order last year creating a Behavioral Health Council to foster collaboration among stakeholders and inform future policy and work to increase accessibility and quality of behavioral health services available in the Commonwealth.
