At least two California mental health programs are set to close because of reduced Medicaid reimbursement rates from the state, CalMatters reported Dec. 21.
The state began implementing CalAIM, an initiative to reform its Medicaid system to promote health equity and value-based care, in 2022. In June, a new payment system took effect for behavioral health providers, designed to increase efficiency and reduce administrative burdens.
Community mental health directors told CalMatters the new payments do not adequately reimburse for time spent traveling to patients and filling out paperwork. David Mineta, director of San Jose-based Changing Momentum, told the outlet the organization had faced financial challenges before the rate changes, but ultimately decided to close six programs serving around 650 people after the changes took effect.
The new rates do not pay enough for community mental health workers, who spend a lot of time in the community that is not reimbursed, Mr. Mineta said.
A spokesperson for California's department of managed healthcare told CalMatters it is continuing to monitor payment reform rates "and will adjust them as appropriate."
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