Elevance Health Inc. (NYSE: ELV) is making major moves to expand pediatric behavioral health access, announcing two landmark contracts in Q1 2024 with the states of Maryland and California. These agreements, worth up to $740 million collectively, mark a significant commitment by Elevance and its health services division, Carelon, to address critical gaps in mental health care for youth—particularly those covered by Medicaid.
This strategic expansion reflects a growing recognition that pediatric behavioral health access is not just a clinical necessity but a public health priority. The contracts aim to build more inclusive, affordable, and community-based care networks that meet children and adolescents where they are—at school, at home, and within public systems.
A Strong Start To 2024 For Carelon
Carelon, Elevance’s healthcare services arm, reported $12.1 billion in operating revenue for Q1 2024—an increase of $600 million compared to the same period in 2023. According to Elevance CEO Gail Boudreaux, the division’s momentum is rooted in its expanding footprint in behavioral health, especially among government payers.
“Momentum with external clients is building and underscores the value Carelon services is creating for health plan customers to better consumer experiences and improve affordability,” Boudreaux said in the earnings call.
Much of this success is being driven by new state-level initiatives designed to improve pediatric behavioral health access across diverse communities.
Transforming Medicaid Behavioral Health In Maryland
In Maryland, the Department of Health has tapped Carelon to provide behavioral health services to over 1.7 million Medicaid members beginning January 2025. The contract, valued at nearly $340 million, encompasses mental health and substance use disorder (SUD) care—key components of pediatric behavioral health access for low-income families.
Maryland’s Medicaid population includes a large share of children and adolescents in need of early behavioral health support. This contract directly addresses the shortage of accessible care options by scaling up infrastructure and integrating services across community settings.
The expansion reflects a broader shift toward whole-person care and early intervention strategies, both of which are essential to improving pediatric behavioral health access in underserved populations.
California School-Based Behavioral Health Initiative
Elevance’s second major win this year is a $400 million contract with the California Department of Health Care Services (DHCS). Under this agreement, Carelon will serve as the administrative services organization for public school-based health and behavioral health services.
This initiative is specifically designed to expand pediatric behavioral health access in schools—where many children first experience behavioral challenges. With youth mental health needs surging in the wake of the COVID-19 pandemic, this school-based model offers a critical avenue for prevention, early diagnosis, and continued support.
“This initiative represents a major step forward in addressing the critical need for mental health support in educational settings and demonstrates our commitment to improving the health and well-being of our communities,” Boudreaux said.
By embedding behavioral health care directly into the school system, Carelon is helping remove logistical and social barriers that often prevent children—particularly those on Medicaid—from receiving timely and consistent care. This model is becoming a gold standard for increasing pediatric behavioral health access in real-world settings.
Addressing The Crisis: Suicide Prevention And SMI Care
Carelon’s impact goes beyond system contracts. Since launching its suicide prevention program in 2019, the company has expanded its services to children as young as 10 years old—a direct move to improve pediatric behavioral health access during crisis situations. This kind of early, targeted intervention is crucial as suicide remains one of the leading causes of death among youth in the U.S.
In addition, Elevance is tackling serious mental illness (SMI) in children and teens—an area it describes as an “open window” in the behavioral health market. The company plans to assume full financial risk for SMI care, demonstrating confidence in its ability to manage complex behavioral health cases within Medicaid and school-based environments.
These efforts underscore Elevance’s commitment to deepening pediatric behavioral health access at every level, from mild anxiety to severe, chronic mental illness.
Investing In Integrated Care Models
Carelon’s first brick-and-mortar clinic, opened in 2023, integrates physical and behavioral health services under one roof. These clinics offer family planning, marriage counseling, and dedicated programs for military veterans. While not exclusively pediatric-focused, the integrated model supports holistic care that benefits entire families—ultimately strengthening the systems that influence pediatric behavioral health access.
Integrated care models like these are critical in building sustainable pathways to care for children, especially those navigating complex home environments or comorbid physical and mental health conditions.
Financial Stability Fuels Continued Expansion
Elevance reported total operating revenue of $42.3 billion in Q1 2024, reinforcing the company’s financial strength and capacity to invest in long-term health infrastructure. CFO Mark Kaye confirmed the results aligned with expectations and positioned the organization to continue scaling its services—including those that expand pediatric behavioral health access.
As Carelon takes on a growing role in national behavioral health transformation, its investments reflect a shift from fragmented, reactive care to proactive, community-based models that prioritize prevention and accessibility.
Conclusion: A Pivotal Moment For Pediatric Behavioral Health Access
Elevance Health’s latest moves—securing two massive behavioral health contracts and expanding crisis services—represent a meaningful step forward in addressing the nation’s pediatric mental health crisis. With new programs targeting Medicaid recipients in Maryland and students in California schools, Elevance is helping to rewrite the narrative on what pediatric behavioral health access should look like in America.
From crisis prevention to school-based support to fully integrated care, Elevance and Carelon are building a comprehensive framework that meets children where they are, ensures equity in access, and lays the groundwork for better long-term outcomes. As the company continues to grow, its leadership in pediatric behavioral health access will likely become a blueprint for others in the industry to follow.
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