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Section II: Supporting Good Decision-Making

Table 1. Examples within the typology
Type Setting Description
1. Direct Provision New Hampshire public mental health system, New Hampshire Hospital State owns psychiatric inpatient facility
2. Direct Purchase, No Risk Medicare arrangements for professional services Centers for Medicare and Medicaid Services (CMS) pays unrelated (i.e., not federally employed) providers according to fee schedule
3. Direct Purchase, Risk Medicare arrangements for inpatient services in general hospitals Centers for Medicare and Medicaid Services pay hospitals a prospectively set rate per discharge (Diagnosis-Related Group [DRG] payment)
4. Integrated Third-Party Purchasing, No Risk Self-insured employer Employer contracts on an Administrative Services Only (ASO) basis for integrated health care benefit (managed or unmanaged); health plan purchases both somatic health services and behavioral health services
5. Integrated Third-Party Purchasing, Risk Lubbock County Service Area, Texas Medicaid program Texas Department of Health contracts with competing Health Maintenance Organizations (HMOs) for integrated benefit provided under capitation arrangement
6. Carve-Out Third-Party Purchasing, No Risk West Virginia Medicaid program State Medicaid Agency carves out benefit to managed behavioral health care organization (MBHO); pays MBHO fee-for-service
7. Carve-Out Third-Party Purchasing, Risk Massachusetts Group Insurance Commission Employer group carves out benefit to MBHO, pays MBHO administrative fee, and shares cost risk inside a fixed region (risk corridor)
8. Carve-In, No Risk Self-insured employer Employer contracts with health plan on ASO basis; health plan subcontracts with MBHO for behavioral health services on ASO basis
9. Carve-In, Risk Federal Employees Benefit program Federal employees may choose, for example, an HMO, which carves in to its own behavioral health subsidiary with a subcapitation arrangement for behavioral health

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