SDCOE Leads New Statewide Initiative to Reimburse Costs for School-Based Behavioral Health Services

Middle school girls collaborating in class on a presentation

How can we get children and teens access to behavioral health supports when and where they need it?

This was the idea behind the California Department of Health Care Services investment of billions of dollars to expand behavioral health supports for children and youth in 2024. As part of the Children and Youth Behavioral Health Initiative (CYBHI), the state introduced the CYBHI Fee Schedule — a first‑of‑its‑kind program designed to make it easier for students and families to access behavioral health services tailored to their needs.

SDCOE is leading the local implementation of this new school‑based behavioral health funding model, supporting districts and schools across the region in building sustainable systems to get reimbursed for the behavioral health services schools already provide to students.

Under recent legislation, Medi-Cal and commercial/private health plans must reimburse schools for eligible behavioral health services delivered to students. This shift allows schools to expand access to care while securing stable, ongoing funding for services they have long provided.

“With recent reductions and uncertainties within education funding, the Fee Schedule provides districts and schools with the opportunity to sustain and build out their behavioral health school-based services. It’s the new way of doing business in schools that can generate critical revenue,” said Heather Nemour, a coordinator at SDCOE who is part of the team leading this work.

According to the Department of Health Care Services, the program establishes a sustainable reimbursement pathway for local educational agencies (LEAs) to receive funding for services provided at a school or school-linked site. The program sets the reimbursement rate for a certain set of school-linked services rendered to children and youth who are under the age of 26, enrolled in TK-12 or higher education, and covered by certain managed care plans.

Importantly, students and families do not pay any out-of-pocket costs, nor does participation affect their existing insurance coverage or deductibles. To participate, families provide their insurance information and consent to receive services, allowing LEAs to bill for and be reimbursed for the mental or behavioral health services.

“Mountain Empire Unified School District saw the CYBHI program as a pathway to continue to provide invaluable counseling, guidance, and resources to our students,” said Gary Brannon, director of Student Services and Alternative Education at Mountain Empire. “In a small, rural school district the student mental and behavioral health support pieces have historically been the first areas to be affected by budget fluctuation, and we hope this will solidify these important services.”

To help LEAs develop the infrastructure needed for successful implementation, the state also launched the CYBHI School-Linked Partnership and Capacity Grant. This one-time funding supports LEAs in building their operational readiness to participate in the Fee Schedule.

In San Diego County, SDCOE’s Student Wellness and School Culture team serves as the grant administrator and provides hands-on technical assistance, implementation guidance, and ongoing support.

“It has been an opportunity for the SDCOE team to meet with our small LEAs who have little to no behavioral health staff to explore other staffing opportunities,” Nemour said. “We have the opportunity to get creative and find new avenues to get reimbursed for services we’re providing to our kids. LEAs can also build or enhance partnerships with community-based organizations to bring services to students and bill on behalf of the student’s LEA.”

Since the launch of the Capacity Grant in 2024, LEA participation in the Fee Schedule has grown into a countywide movement. The SDCOE team has worked diligently to meet LEAs where they are — providing individualized support, reducing the operational burden on them, and serving as thought-partners throughout each stage of implementation.

“SDCOE has been a valuable partner to our district throughout this process,” said Yuka Sakamoto, program manager at San Diego Unified School District. “The Fee Schedule has required new approaches and systems within LEAs and the opportunity to brainstorm, process, and dialogue with a trusted thought partner has been incredibly beneficial and helpful to move from conceptualization to implementation.”

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