Texas To End NorthSTAR Managed Behavioral Health Medicaid Carve-Out

Texas is ending its NorthSTAR Behavioral Health Medicaid carve-out as of December 31, 2016. In the seven counties involved with the NorthSTAR Behavioral Health program, the Medicaid managed care plans will carve-in behavioral health services and new local behavioral health authorities formed by the counties will launch delivery systems for non-Medicaid behavioral health services as of January 1, 2017.

Texas launched the NorthSTAR behavioral health program in 1999 as pilot under a 1915(b) Medicaid waiver that allowed the program to contract with only one managed behavioral health organization (MBHO). The program provides integrated mental health and . . .