Single stream funding is a way of paying for services for individuals who have a diagnosis of mental illness, a developmental disability or a substance abuse issue, or a combination of these. Services are delivered by providers contracted with local management entities/ managed care organizations (LME/MCOs) that are paid via a non-Unit Cost Reimbursement(non-UCR) fee structure.
State service funds are allocated to the LMEs once state General Assembly approves an annual budget, and these allocation are communicated to the LMEs via the continuation allocation letter and subsequent allocation letters. The majority of these state funds are allocated into the single stream funds account. Single stream funds are allocated as non-UCR funds, but LME/MCOs are required to submit claims for services rendered and the value of these claims will be considered in settlement of the single stream funding account. Since the single stream funds are flexible in nature, LME/MCOs do not have to request a realignment of these funds.