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. 1998 Mar-Apr;17(2):53-69.
doi: 10.1377/hlthaff.17.2.53.

Costs and incentives in a behavioral health carve-out

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Costs and incentives in a behavioral health carve-out

C A Ma et al. Health Aff (Millwood). 1998 Mar-Apr.

Abstract

A carve-out of mental health and substance abuse services initiated in 1993 by the Group Insurance Commission (GIC) of the Commonwealth of Massachusetts resulted in changes in the costs of those services. Those changes were related to incentives in the contract between the GIC and its managed behavioral health vendor. Total and plan costs were reduced by 30-40 percent after adjusting for trends. Incentives to produce savings of this magnitude not only were a consequence of the payer/vendor contract but, we speculate, derive from the growth potential facing companies in the managed behavioral health care market.

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Comment in

  • Mental health care: a commodity?
    McNeill D. McNeill D. Health Aff (Millwood). 1998 Jul-Aug;17(4):241. doi: 10.1377/hlthaff.17.4.241. Health Aff (Millwood). 1998. PMID: 9691566 No abstract available.
  • Mental health carve-outs.
    Pomerantz JM. Pomerantz JM. Health Aff (Millwood). 1998 Jul-Aug;17(4):243-4. doi: 10.1377/hlthaff.17.4.243-a. Health Aff (Millwood). 1998. PMID: 9691568 No abstract available.

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