July 29, 2025

Innovation in Behavioral Health Model 2025

State Medicaid Agencies can capitalize on a new, evidence-based opportunity to design better behavioral health systems.

The Opportunity

The Innovation in Behavioral Health (IBH) Model, developed by the Centers for Medicare & Medicaid Services (CSM), is designed to address the fragmentation of behavioral and physical health care for adults with moderate to severe mental health and substance use disorders (SUD). These individuals often face poor outcomes, premature mortality, and unmet social needs due to uncoordinated systems.

Why IBH Matters

Behavioral health care is often siloed from physical health care, resulting in inefficiencies and disparities. The IBH Model addresses these gaps by promoting coordinated, whole-person care that improves outcomes and reduces avoidable utilization.

Initial IBH Model funding awarded by CMS includes:

  • Oklahoma (statewide)
  • Michigan, New York, and South Carolina (sub-state)
  • Each state received ~$7M in cooperative agreement funding for planning, infrastructure, and provider transformation.

IBH Model Goals

  • Integrate behavioral health and physical health care for adult Medicaid, Medicare, and dually eligible beneficiaries with moderate to severe mental health and/or SUD.
  • Align Medicare and Medicaid through value-based payment models.
  • Address health-related social needs like housing, food, and transportation.
  • Expand certified health IT use and improve data-sharing for better care coordination.

How A&M Can Help

A&M brings deep subject matter expertise and practical experience in supporting states and other organizations to assess and implement federal demonstration programs and other funding opportunities.

Below are specific skills and service offerings we have leveraged for states:

Explore and Assess for Feasibility
  • Assess state electronic health record systems and interoperability capacity
  • Identify eligible specialty behavioral health practices
  • Evaluate relationships with existing crisis service delivery systems
  • Analyze alignment with the IBH care delivery framework
Foundational Needs Support
  • Enhance health IT infrastructure to support integrated care
  • Leverage telehealth tools to expand access and care coordination
  • Coordinate practice transformation across participating providers
Adaptation of Existing Models
  • Certified Community Behavioral Health Clinic (CCBHC) Demonstration
  • CCBHC SAMSHA Expansion Grants
  • Medicaid Health Homes
  • Primary Care Case Management
  • Assess state electronic health record systems and interoperability capacity
  • Identify eligible specialty behavioral health practices
  • Evaluate relationships with existing crisis service delivery systems
  • Analyze alignment with the IBH care delivery framework
  • Enhance health IT infrastructure to support integrated care
  • Leverage telehealth tools to expand access and care coordination
  • Coordinate practice transformation across participating providers
  • Certified Community Behavioral Health Clinic (CCBHC) Demonstration
  • CCBHC SAMSHA Expansion Grants
  • Medicaid Health Homes
  • Primary Care Case Management
Project and Change Management
  • Support interprofessional team development and change management
  • Address resistance to change and foster organizational alignment with model goals
  • Guide teams through sustainable cultural and operational transformation
Stakeholder Engagement
  • Maintain transparent, consistent communication with regulators, leadership, and staff
  • Negotiate expectations and resolve concerns with oversight and compliance bodies
  • Respond to feedback by strengthening staffing, retention, and workforce development
Quality Measures and Incentives
  • Support states in designing IBH quality measures tied to payment and required reporting
  • Develop value-based quality incentives targeting diabetes, hypertension, and tobacco use disorder
  • Monitor person-centered planning, treatment goals, and outcome achievement
  • Support interprofessional team development and change management
  • Address resistance to change and foster organizational alignment with model goals
  • Guide teams through sustainable cultural and operational transformation
  • Maintain transparent, consistent communication with regulators, leadership, and staff
  • Negotiate expectations and resolve concerns with oversight and compliance bodies
  • Respond to feedback by strengthening staffing, retention, and workforce development
  • Support states in designing IBH quality measures tied to payment and required reporting
  • Develop value-based quality incentives targeting diabetes, hypertension, and tobacco use disorder
  • Monitor person-centered planning, treatment goals, and outcome achievement

Lead the Way in Integrated Care

Discover how your state can leverage the IBH Model for better outcomes and funding alignment.

LEARN MORE

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