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Federal Policy Update:
Medicaid and Medicare Issues Take Center Stage

What's Inside:(home)
Advocates Celebrate Supreme Court Decision To Ban Juvenile Death Penalty

Teens and Parents Say ADHD Treatment Works

Consumer-Run Mental Health Organizations Receive Boost

First Person: The Dignity of Risk

What Are You Doing For Mental Health Month?

Research Notes

NMHA Tools You Can Use

NMHA’s June Annual Conference Offers the Latest Tools and Strategies

 

Although it’s still early in the year, Congress has already moved on many issues related to mental health—some of their actions will benefit people who have mental health disorders and others would jeopardize access to care. NMHA encourages advocates to contact their members of Congress regularly to voice their opinions on local and federal policies that will affect mental health care and Americans’ access to it.

Senate Restores Medicaid, Raises Spending Cap
Thanks to grassroots pressure from mental health advocates and the leadership of Sens. Gordon Smith, R-Ore., and Jeff Bingaman, D-N.M., the Senate approved an amendment in March that restored $14 billion in federal Medicaid funding that had been cut from the Senate budget resolution. All Senate Democrats and seven Republicans voted for the amendment. The Senate also closely passed an amendment sponsored by Sen. Edward Kennedy, D-Mass., to raise the federal government’s cap on discretionary spending by $6 million to nearly $849 billion. By raising the cap, this amendment represents the best opportunity to allow Congress to make additional investments in federal health agencies, including the Substance Abuse and Mental Health Services Administration, the U.S. Centers for Disease Control and Prevention, the National Institutes of Health, and the Health Resources and Services Administration. The House of Representatives' adoption of Medicaid cuts continues to pose a threat, compelling advocates to sustain the pressure on Congress to drop these cuts.

Hearings Held on Medicare’s Dual Eligibles
The Senate Special Committee on Aging, chaired by Sen. Gordon Smith, R-Ore., held a hearing in early March to call attention to the impact of the new Medicare drug benefit program on people who are dually eligible for both Medicare and Medicaid. The prescription drugs that people who are dually eligible take are currently paid for by Medicaid. After Jan. 1, 2006, however, the drugs will be paid for by Medicare. Among other reasons, Sen. Smith called the hearing, which featured U.S. Centers for Medicare & Medicaid Services Administrator Mark McClellan, to ensure that there’s no risk of gaps in coverage during the transition between Medicaid and Medicare, a concern of NMHA’s.

Senate Agrees to Include Family Opportunity Act in Budget
Sens. Kennedy and Charles Grassley, R-Iowa, were successful in including the Family Opportunity Act (FOA) as an amendment to the Senate’s budget resolution. This legislation would allow families with incomes of up to 300 percent of the federal poverty level and whose children have significant psychiatric and other disabilities to buy into the Medicaid program, even though their incomes would otherwise disqualify them from the program. Such an opportunity will allow these families to afford care for their children in community- or home-based settings, instead of institutional care. FOA will also establish a demonstration project that will give children and teens in certain states who receive services in psychiatric residential treatment centers to qualify instead for community- or home-based care.

Bill May Undermine State Parity Laws
The House Education and Workforce Committee approved the Small Business Health Fairness Act in mid-March. This bill would allow small businesses to form association health plans so that they can jointly purchase insurance coverage for their employees free of state regulation. Research has shown, however, that these plans are largely ineffective in helping workers obtain insurance coverage. By exempting such plans from state regulation, Congress would put them beyond the reach of a state's parity law. A similar Senate committee is now considering a version of the bill.

To find out more information about these and other subjects, go to www.nmha.org and click on “Policy Alerts.” You can also have NMHA’s policy alerts delivered directly to you by visiting www.nmha.org and clicking on “Get the latest news from the field.”