Elevance awarded $400M California youth behavioral contract

California has selected Elevance Health's Carelon Behavioral Health as the administrative services organization for the state's Child and Youth Behavioral Health Initiative, Open Minds reported in March.

California's Children and Youth Behavioral Health Initiative launched in January and will offer digital behavioral health resources and support to all state residents alongside existing services offered by health plans, counties and schools.

Carelon's contract is worth $400 million and will include credentialing behavioral health professionals, managing claims, and submitting claims to Medicaid and other payers.

"In California, our team will partner with the public school system to expand behavioral health management services for students later this year," Elevance President and CEO Gail Boudreaux told investors April 18. "This initiative represents a major step forward in addressing the critical need for mental health support in educational settings and demonstrates our commitment to improving the health and well-being of our communities."

Carelon was also recently selected for a $340 million contract to administer Maryland's mental health and substance use disorder services under its public behavioral health system.

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