CSAC Bulletin Article

CA Receives Federal Approval of BH-CONNECT Demonstration Waiver

December 19, 2024

On Monday, December 16, the Centers for Medicare & Medicaid Services (CMS) granted approval of California’s proposed Behavioral Health Community-Based Organized Networks of Equitable Care and Treatment (BH-CONNECT) demonstration waiver. BH-CONNECT is intended to build on investments and policy changes currently underway in California that are designed to expand access to community-based behavioral health care and improve outcomes for Medi-Cal members living with the most significant behavioral health needs. California submitted the BH-CONNECT waiver application to CMS in October 2023.

One key component of BH-CONNECT is transitional rent assistance, which provides six months of rental support for eligible Medi-Cal members transitioning from institutions, congregate settings, or homelessness. This benefit will be administered by Medi-Cal Managed Care Plans. Other key components of BH-CONNECT include:

  • Access, Reform, and Outcomes Incentive Program: CMS is authorizing up to $1.9 billion over five years in expenditure authority for participating County Behavioral Health Plans to strengthen and improve quality and behavioral health outcomes among Medi-Cal beneficiaries.
  • Workforce Investments: CMS is authorizing up to $1.9 billion to support workforce recruitment and retention to promote the increased availability of behavioral health providers who serve Medi-Cal and demonstration beneficiary members.
  • Support for Child Welfare Clients: CMS is authorizing the expenditure of activity funds to improve access and outcomes for youth involved in child welfare system receiving specialty mental health services.
  • Community Transition In-Reach Services: Supports members transitioning from long-term institutional stays to ensure continuity of care and successful reintegration into the community.
  • Short-term Inpatient Psychiatric Care: Provides new flexibility for federal Medi-Cal funding for short-term mental health care provided in inpatient and residential treatment settings that meet the federal institution for mental diseases (IMD) criteria.

Additional information on BH-CONNECT can be found on the Department of Health Services BH-CONNECT webpage.

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