CMS Guidance on Addition of CCBHCs to
Section 223 State Demonstration Programs

February 22, 2023

As you know, last fall the NYS Council pushed hard for CMS to agree to allow existing CCBHC Federal Demo states (those already in the group of 10) to allow to expand the number of demos in their state.  Once CMS indicated it would do so, we went to work pushing state leaders to make the decision to expand the demo in New York.  We proposed language to the Governor’s Office that would permit vast expansion of the demo and we commissioned a Financial Analysis from HMA actuaries that proved New York State saves money with every clinic service it converts to a demo service.  Last month we learned that the Governor had heard our request.  Her FY’24 executive budget proposal includes a provision that would expand the CCBHC Federal Demo in NY from its current 13 agencies to a total of 39 demo agencies, and we are pushing for more.

CMS finally released guidance to the states that describes the conditions current Demo states must meet in order to expand the federal demo in their state.  Importantly, the Guidance indicates that these states would be able to add clinics to the demo, allowing the CCBHC bundled services under the PPS rate to receive an enhanced FMAP.

See document attached.