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Carve-Out Program

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Carve-Out Program
A program by a payer—e.g., Medicare—which transfers the responsibility for mental health services to specialty behavioural health organisations; such programs are designed to reduce costs


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A recent California Department of Insurance document claims that "several carve-out programs, specifically those with an ombudsman, have had demonstrated success in reducing the level of litigation, returning workers to work more quickly, and reducing the overall cost burden on the system.
By the end of 1995, 12 States had adopted some form of MBHC carve-out program for their Medicaid programs.
 
 
 
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