NYS Council Response to NYS HPA Comments on Call for Carve Out of Certain Behavioral Health Services

December 29, 2025

Good morning,

We hope you enjoyed the holidays!  

Below, please find a communication we just transmitted to Governor Hochul and her team, DOB leaders, state agency commissioners, DoH leads, etc. correcting the record regarding some of the myths and bad information health plan association representatives have been throwing against the wall to see what sticks as they work to dissuade state leaders from removing certain behavioral health services from the state’s Medicaid managed care program, and returning reimbursement of these services to the state through the Medicaid Fee for Service system.  

Many thanks to Marcy Savage (our government relations consultant) for working with me on this document over the holidays. 

Please let us know what you think of this document?  lauri@nyscouncil.org

Have a good day.  Stay warm.

Lauri 

———- Forwarded message ———
From: Marcy Savage <marcys@lobbywr.com>
Date: Mon, Dec 29, 2025 at 8:00 AM
Subject: Response to NYS Health Plan Association Comments on Call for Medicaid Managed Care Carve Out of Behavioral Health Services
To: <legislative.secretary@exec.ny.us>
Cc: Karen Persichilli Keogh <karen.p.keogh@exec.ny.gov>, Kathryn Garcia <Kathryn.Garcia@exec.ny.gov>, Angela Profeta <angela.profeta@exec.ny.gov>, Peter Hatch <peter.hatch@exec.ny.gov>, Blake Washington <Blake.Washington@budget.ny.gov>, McDonald, James (HEALTH) <James.McDonald@health.ny.gov>, <chinazo.cunningham@oasas.ny.gov>, <ann.sullivan@omh.ny.gov>, Bassiri, Amir (HEALTH) <amir.bassiri@health.ny.gov>, <jackie.bray@dhses.ny.gov>

Dear Governor Hochul:

Attached, please find a document prepared by the NYS Council for Community Behavioral Healthcare responding to the false claims made recently by insurance company representatives, in response to the urgent call by organizations representing New Yorkers with Medicaid, their families, and community providers for New York to fix the broken Medicaid system of care by carving outpatient, residential, and rehabilitative mental health and substance use disorder (SUD) services out of Medicaid managed care (MMC).

For more than a decade, there’s been a crisis felt by so many New Yorkers, their families, and schools throughout the state struggling to respond to the serious mental health and addiction care needs of our residents. Children and adults are facing long wait times for care, service deserts, and health insurance denials, which hinder their ability to get the care they need and deserve in a timely manner. The fact is, millions of New Yorkers would benefit from the managed care carve out by streamlining the program and making the care provided to those enrolled in Medicaid patient-centered and available without barriers put up by insurers with a profit motive.  

The NYS Council and its many partners representing consumers, families and providers respectfully urge you to carve outpatient, residential and rehabilitative mental health and SUD services out of Medicaid managed care in your SFY 2027 Executive Budget.

Thank you for your consideration of this important request.