New Mexico has initiated a $1 million study to evaluate and improve health care and social services for Medicaid members with serious mental illness or substance use disorders. The New Mexico Health Care Authority (HCA) awarded the contract to Manatt Health Strategies, LLC, which will lead a comprehensive behavioral health assessment and feasibility study.
According to Medicaid Director Dana Flannery, “New Mexico knows that mental health is a component of overall wellness. The more we can integrate mental health into whole person care, the more we can do serve individuals who need social support. This study will examine where gaps in service might exist and where further behavioral health funding might move more individuals into recovery from substance use or mental illness.”
The state legislature allocated $1 million for this initiative during its 2025 session. The final report is expected in January 2026, ahead of the next legislative session, with the goal of informing future decisions about behavioral health system funding.
Manatt was chosen through a competitive procurement process due to its experience in behavioral health services, Medicaid policy, financing strategies, and data analysis. The assessment will involve stakeholder engagement, data-driven modeling, and evaluation of potential service delivery and financing models.
To support the project, Manatt will collaborate with Milliman for actuarial services and Kaufmann and Associates, Inc., which focuses on culturally grounded research and evaluation. Contract activities are set to begin immediately.
The HCA administers programs such as Medicaid, SNAP (Supplemental Nutrition Assistance Program), LIHEAP (Low-Income Home Energy Assistance Program), cash assistance, child support services, behavioral health care statewide, oversees the State Health Benefits program for state employees, manages the Health Care Affordability Fund for working families’ coverage affordability needs, licenses facilities, investigates complaints against providers to ensure quality care standards are met, and supports individuals with intellectual or developmental disabilities through home- and community-based programs designed to protect their rights.
