The implementation of the Affordable Care Act and Medicaid Reform that is being enacted in many states has led to a focus on the development of models for integrated care, coordinated care models and the development of health homes as a way to manage service delivery and the purchase of care. State Medicaid agencies are increasingly contracting with managed care and behavioral health managed care companies as a mechanism for implementing these models. The network of service providers under these models are typically comprised of a wide range of private providers as well as specialty mental health providers such as community and county mental health and/or substance abuse agencies. Although managed care companies contract directly with the State Medicaid agency, state agencies with responsibility for mental health and substance abuse services are often involved in planning and discussions with regard to the purchase of services that have previously or are currently under their purview. This session will focus on the implementation/expansion of the role of managed health and behavioral health care companies in the delivery of behavioral health care services in the era of Medicaid Reform. How will managed care address the integration of primary health and primary health, quality of care issues, provider network issues and service delivery? How will the services provided by managed care companies interface with state mental health and substance abuse authorities, county authorities and with specialty mental health and substance abuse providers who may find themselves contracting with state funders in addition to managed care entities?