Discretionary Funding Allocations Hamstring SMHS in Counties with Highest Proportion of Medi-Cal Eligible Youth

New research by Young Minds Advocacy shows that discretionary funding allocations dating back to at least 2011 Realignment have constrained Specialty Mental Health Services (SMHS) in counties with the highest percentage of Medi-Cal eligible youth.

California funds its children’s SMHS program primarily with dedicated state sales tax and vehicle licensing fees, and federal Medicaid matching funds. Allocations among counties are determined by the Departments of Finance and Health Care Services, largely on the basis of prior county mental health spending patterns. This funding formula results in a disproportionate allocation of resources favoring counties that historically spent more on mental health care for children and youth.

As a result, hundreds of thousands of youths have not received any services simply because they resided in counties that have proportionately more Medi-Cal eligible youths than mental health funding. Moreover, these “underwater” counties have been less able to engage youth who touched their SMHS systems, and have provided far fewer average hours of treatment and for shorter time-periods to those who do get care. Compared with reasonable standards of access and care, youths in these counties went unserved or underserved, contrary to government’s promise of equal access to care and the mandates of state and federal Medicaid law. Read the new report here https://www.ymadvocacy.org/young-minds-pubs-and-presentations .

Posted 11.30.2022 Young Minds Advocacy Staff