DATE: June 24, 2025
TO: Board of Supervisors
SUBMITTED BY: Susan Holt, Director, Department of Behavioral Health
SUBJECT: Amendment No. 1 to Service Agreement with Carelon Behavioral Health of California, Inc.
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Amendment No. 1 to Agreement No. 23-266 with Carelon Behavioral Health of California, Inc., to remove the monthly authorization cap of 150 individuals and replace it with an annual cap of 2,100 individuals with no change to the term of March 1, 2023 through June 30, 2027, or maximum compensation of $5,166,896.
REPORT
There is no additional Net County Cost associated with the recommended action. The current agreement allows for a maximum of 150 authorizations (plus an additional overage allowance of 160 authorizations per year) for residential substance use disorder treatment services. Approval of the recommended action will revise the authorizations from a monthly limit to an annual limit of 2,100 authorizations and allow surplus unused authorization reviews to be rolled over to the subsequent year. This item is countywide.
ALTERNATIVE ACTION(S):
If the recommended action is not approved, Carelon will be limited to processing a maximum of 150 authorizations per month, with an additional overage allowance of 160 per year. Any authorizations exceeding this limit will need to be processed by County staff, requiring them to work on weekends, which will also result in overtime costs.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The maximum amount of the agreement ($5,166,896) will remain the same and will be fully offset with Behavioral Health Realignment funds. Sufficient appropriations and estimated revenues are included in the Department of Behavioral Health Org 5630 FY 2024-25 Adopted Budget and will be included in subsequent budget requests for the term of the agreement.
DISCUSSION:
On June 21, 2022, the Department ent...
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