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​​​INNOVATIV​E FUNDING MODEL HELPS SCHOOLS SUSTAIN MENTAL HEALTH SERVICES

State Reimbursement Program Builds on Positive Early Results with New Resources

SACRAMENTOCalifornia schools have long worked to meet student mental health needs, and the Department of Health Care Services (DHCS) is supporting these efforts through a new sustainable funding program that is already showing promising results.  

Through the Children and Youth Behavioral Health Initiative (CYBHI) Fee Schedule program, local educational agencies (LEA), which includes California public K-12 school districts, charter schools, and county offices of education, and public institutions of higher education (IHE), including public community colleges and universities, can sign up to participate in a ​reimbursement pathway for mental health and substance use screenings, treatment, and case management. This creates a sustainable funding source for school-based care. This innovative multi-payer program breaks down barriers and puts students first, creating a more seamless experience for youth seeking help with mental health. More than 500 LEAs and IHEs have already signed up and are actively onboarding. 

Although still early in implementation, this first-in-the-nation effort is already demonstrating positive results: schools and their partners have received more than $1.8 million in new funding for services provided to more than 5,000 students. As of October 15, 55 LEAs and IHEs have submitted more than 26,000 claims through the program, representing 32 Medi-Cal managed care plans and other insurers, including commercial plans. These outcomes reflect significant progress achieved in just more than a year since participants first became eligible to bill for services. 

“Schools are often the first place students turn to for support,” said DHCS Director Michelle Baass. “Through the CYBHI Fee Schedule program, we’re helping schools meet that need by easing financial pressures and building a sustainable foundation for student mental health services, so every student has access to care when and where they need it.” 

 

​"We were lucky enough to be the first to successfully submit a service for billing, and we actually got our first check. It was only $77, but it was a big milestone," said Nevada Joint Union High School District Director of Pupil Services Timothy Reid. As of November 3, the district had been reimbursed more than $​30,000. Since the first claim was submitted in December 2024, the average reimbursement for an LEA/IHE is nearly $50,000, and multiple LEAs are nearing being reimbursed $1 million through the program. 

​NEW RESOURCES AND AWARENESS CAMPAIGN: To support program implementation, DHCS launched new public-facing and provider​-facing information and resources to help schools and families navigate the program:

  • In collaboration with LEAs, including school district and county office of education staff, DHCS released a new public education campaign for parents and caregivers. The campaign explains how the program works and encourages families to provide the students' health coverage information and sign a consent form so students can receive services. The materials clarify that insurance information is used solely to support reimbursement, is kept confidential, and does not affect a family's coverage or benefits. Visit dhcs.ca.gov/CYBHI for the​ full campaign video series, including videos in English and Spanish.
  • DHCS posted an updated CYBHI Fee Schedule Program Guidance for Local Educational Agencies and Institutions of Higher Education to give LEAs and IHEs comprehensive guidance on participation.
ABOUT THE CYBHI FEE SCHEDULE PROGRAM: The program requires​ Medi-Cal managed care plans, Medi-Cal fee-for-service providers, commercial health insurance plans, and disability insurers to reimburse school-linked providers for behavioral health services provided to students under age 26, with no out-of-pocket costs for families. As a result, schools now have a sustainable funding source through which to hire, train, and retain staff, increasing access to behavioral health services.

WHY THIS IS IMPORTANT: Youth mental needs have risen significantly in the last decade. California falls short of the recommended ratio of one school psychologist per 500 students, largely due to cost barriers. By creating a sustainable funding mechanism for providing these services, the CYBHI Fee Schedule program addresses this gap by funding school-based services, prioritizing early intervention, and expanding opportunities for the behavioral health workforce to meet growing demand. Research has shown an association between students who access services through a school-based health center and positive school attendance, particularly for students with a mental health diagnosis, suggesting that increased mental health support through school may improve school attendance. 

WHAT THEY'RE SAYING: "We've heard from California students across the state about the need to increase behavioral health support where they spend time at schools. The CYBHI Fee Schedule program is answering the call," said CYBHI Director Dr. Sohil Sud. "Through partnerships and deeper connections between schools and health plans, along with sustainable funding, schools can meet the behavioral health needs of students who need it most."

"Together, we have made significant strides in our efforts to transform school-based behavioral health care in California. Our progress to date is a testament to the commitment and the collaborative efforts of our school-district, managed care plan and community partners," said Autumn Boylan, Deputy Director of DHCS' Office of Strategic Partnerships. "With the foundation we've built, I am confident we will continue to succeed in making a lasting impact on the lives of students across the state."

"Through the CYBHI Fee Schedule, our school district can continue to provide comprehensive, school-based behavioral health services, including assessments, counseling, prevention, and wellness programs, all at no cost to students and families. These funds will sustain and strengthen the vital program we have built to nurture the mental and emotional well-being of our students, while extending care to their families and our broader community," said Jesus Chavarria, Anaheim Elementary School District ​Superintendent.

"CYBHI's involvement allows us to expand the services and support we can provide,"​ said Mat​thew Zavala, Mental Health Therapist at Silver Springs High School in Grass Valley. "When I started working at this school, mental health programming was very grassroots. Now, it's more stable and secure. It really feels like mental health is part of the school system. On a smaller scale, it's just nice to see students find a place where they feel welcome and have a positive school experience. Seeing both of those things happen simultaneously​ is a very rewarding part of this job."

BIGGER PICTURE: The CYBHI Fee Schedule is part of the state's broader effort to transform youth mental health care into a coordinated, equitable, and prevention-focused system. The CYBHI Fee Schedule program is the CYBHI's flagship, a more than $4 billion investment to transform behavioral health services for children, youth, and families, and it is central to the Governor's Master Plan for Kids' Mental Health. Learn more on the CYBHI Fee Schedule webpage
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