{"id":34589,"date":"2025-06-12T09:25:36","date_gmt":"2025-06-12T13:25:36","guid":{"rendered":"https:\/\/advisory.avalerehealth.com\/?p=34589"},"modified":"2025-06-12T09:25:36","modified_gmt":"2025-06-12T13:25:36","slug":"what-the-latest-federal-shifts-mean-for-mental-and-behavioral-health","status":"publish","type":"post","link":"https:\/\/advisory.avalerehealth.com\/insights\/what-the-latest-federal-shifts-mean-for-mental-and-behavioral-health","title":{"rendered":"What the Latest Federal Shifts Mean for Mental and Behavioral Health"},"content":{"rendered":"

On the heels of Mental Health Awareness Month, Avalere Health experts have identified four major themes in the policy, regulatory, and market landscape for mental and behavioral health stakeholders to monitor for the remainder of 2025.<\/p>\n

CMMI and MAHA Strategy<\/strong><\/p>\n

In May, the Center for Medicare and Medicaid Innovation (CMMI) announced<\/a> a strategic shift in line with the Make America Healthy Again (MAHA) initiative that would shift the center\u2019s emphasis away from behavioral health integration, favoring cost control and deregulation over value-based mental health models.<\/p>\n

At the same time, the MAHA Commission, which was established through an Executive Order<\/a> in February 2025, is highlighting \u00a0Attention Deficit Hyperactivity Disorder (ADHD), citing concerns around overdiagnosis and overmedication. The Commission\u2019s May 2025 report<\/a> calls for tighter oversight of prescribing practices, signaling potential scrutiny for manufacturers and clinicians in the ADHD space.<\/p>\n

Mental Health Services Parity<\/strong><\/p>\n

The Trump administration is reconsidering<\/a> how the Mental Health Parity and Addiction Equity Act<\/a> is enforced, signaling a potential shift in regulatory posture. While no formal rollback has been announced, this potential shift could result in reduced access to mental health services, as insurers may no longer be required to provide coverage on par with physical health services. Stakeholders are closely monitoring these developments, given the significant implications for mental health care accessibility and equity.<\/p>\n

Proposed Budget Cuts in Mental Health and Medicaid Funding<\/strong><\/p>\n

The Trump administration\u2019s fiscal year (FY) 2026 budget proposal includes significant funding reductions that could impact core behavioral health infrastructure. The proposal impacts SAMHSA with a $1.1 billion funding reduction<\/a>, with additional proposals to dissolve the agency entirely.<\/p>\n

The CDC is also targeted for budget cuts,<\/a> which could impact overdose prevention and mental health surveillance efforts. These cuts come amid rising demand for behavioral health support and ongoing opioid-related challenges<\/a>.<\/p>\n

A bipartisan group of senators<\/a> has objected to these changes, citing risks to federal leadership and service continuity. Mental health advocates and professional societies have echoed these concerns, urging Congress to preserve core services and reject cuts during a continued national mental health crisis.<\/p>\n

The president\u2019s budget also proposed Medicaid reductions, which could limit access to mental health and substance use care for low-income populations. The Centers for Medicare and Medicaid Services has encouraged states to pursue Medicaid waivers<\/a> and demonstration projects that reward integrated, outcomes-based care. Longstanding programs such as Health Homes and Section 1115 waivers offer funding flexibility and incentives to restructure care delivery for behavioral health populations.<\/p>\n

Future Opportunities<\/strong><\/p>\n

To navigate the evolving behavioral health policy landscape, stakeholders should prepare more scrutiny of ADHD prescribing and parity enforcement by strengthening compliance and clinical justification. Stakeholders should also consider funding volatility by diversifying engagement in Medicaid waivers, state pilots, and alternative payment models that support integrated care.<\/p>\n

Avalere Health is monitoring these developments in behavioral health policy and access, applying our cross-functional expertise in policy, reimbursement, data, and quality to support stakeholders stay ahead of change. \u00a0To learn more regarding the evolving behavioral health space and how Avalere can help your business get ahead of these barriers in this uncertain time, connect with us<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

On the heels of Mental Health Awareness Month, Avalere Health experts have identified four major themes in the policy, regulatory, and market landscape for mental and behavioral health stakeholders to monitor for the remainder of 2025. CMMI and MAHA Strategy In May, the Center for Medicare and Medicaid Innovation (CMMI) announced a strategic shift in…<\/p>\n","protected":false},"author":28,"featured_media":29205,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"content-categories":[259],"class_list":["post-34589","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights","content-categories-policy","entry","has-media"],"acf":[],"yoast_head":"\nWhat the Latest Federal Shifts Mean for Mental and Behavioral Health | Avalere Health Advisory<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/advisory.avalerehealth.com\/insights\/what-the-latest-federal-shifts-mean-for-mental-and-behavioral-health\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What the Latest Federal Shifts Mean for Mental and Behavioral Health | Avalere Health Advisory\" \/>\n<meta property=\"og:description\" content=\"On the heels of Mental Health Awareness Month, Avalere Health experts have identified four major themes in the policy, regulatory, and market landscape for mental and behavioral health stakeholders to monitor for the remainder of 2025. 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