Medicaid Monitor
Policy Intelligence
Medicaid Monitor
Policy Intelligence
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State Policy·CA·June 25, 2026

California Replaces Mental Health Services Act with New Behavioral Health Services Act

California has replaced the Mental Health Services Act (MHSA) with the Behavioral Health Services Act (BHSA), changing how counties allocate mental health funding. The BHSA modifies funding allocation requirements and county spending priorities for mental health and substance use disorder services. The change affects how counties structure behavioral health programs and redirect existing MHSA revenues. California Health Care Foundation has published resources detailing the differences between the two funding frameworks.

Why it matters for managed care

Medicaid managed care plans in California must understand new county behavioral health funding flows and program structures as the BHSA reshapes the delivery system for specialty mental health and substance use disorder services covered under Medi-Cal managed care carve-outs.

Behavioral Health · Managed Care

Read the full article at chcf.org

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