EXPENDITURES FOR MENTAL-HEALTH-SERVICES IN THE UTAH PREPAID MENTAL-HEALTH PLAN

This article examines the effect of a mental health carve-out, the Uta h Prepaid Mental Health Plan (UPMHP), on expenditures for mental healt h treatment and utilization of mental health services for Medicaid ben eficiaries from July 1991 through December 1994. Three Community Menta l Health Centers (CMHCs) provided mental health services to Medicaid b eneficiaries in their catchment areas in return for capitated payments . The analysis uses data from Medicaid claims as well as ''shadow clai ms'' for UPMHP contracting sites, The analysis is a pre/post compariso n of expenditures and utilization rates, with a contemporaneous contro l group in the Utah catchment areas not in the UPMHP.! The results ind icate that the UPMHP reduced acute inpatient mental health expenditure s and admissions for Medicaid beneficiaries during the first 2 1/2 yea rs of the UPMHP. In contrast, the UPMHP had no statistically significa nt effect on outpatient mental health expenditures or visits. There wa s no significant effect of the UPMHP on overall mental health expendit ures.