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  Medicaid and Mental Health

States Can’t Afford to Balance Their Budgets on the Backs of People With Mental Illness

  • More than 54 million (one in five) Americans have a mental disorder in any given year.

  • Four million of our nation’s young people have a major mental illness that results in significant impairment at home, at school or with their peers.

  • Depression and anxiety disorders — the two most common mental illnesses — each affect 19 million American adults annually. 1

  • Access to care is vital for people who have mental illnesses. Medicaid provides a critical source of support to people with mental illness, funding nearly 50 percent of state and local spending on mental health services. 2

Mental Health Treatment Only Works if You Can Get It

  • Treatment success rates for such disorders as schizophrenia (60 percent), depression (more than 80 percent) and panic disorder (70-90 percent) surpass those of other medical conditions, such as heart disease (45-50 percent) and other chronic illnesses. 3

  • Two-thirds of Americans adults and one-third of children who need mental health treatment do not receive it, and the rate is even lower —and the quality of care poorer—for ethnic and racial minorities.

  • When people who have mental illnesses are denied access to services and effective treatments, their chances for recovery are significantly reduced. In fact, less than half of people with schizophrenia think society provides adequate service for people with mental illness and they believe that impedes their recovery and makes their life satisfaction much lower than the general public’s. 4

States Pay for Mental Health Care One Way or the Other

  • Twenty-nine states cut funding for mental health services in 20025, and most states anticipate more cuts to mental health services in the future.

  • Untreated and mistreated mental illness costs the United States $105 billion in lost productivity, and $8 billion in crime and welfare expenditures each year. A 5.5 percent increase in spending on mental health treatment by businesses and government could cut these costs in half. 6

  • Medicaid cuts spell dire, long-term consequences for patient health and government budgets because they lead to higher hospital and primary care costs, greater reliance on correctional facilities and welfare, and other costs to society such as lost productivity and suicide. These expenses dwarf any money saved by initial budget cuts.

    • Oklahoma’s Mental Health Commissioner told state lawmakers that recent budget cutbacks to community-based mental health programs seem to be sending clients into more expensive crisis centers. After state budget cuts, patients at the Tulsa Center for Behavioral Health increased 49 percent between October 2002 and March 2003. 7

    • In South Carolina, people with mental illness often wait for days in emergency rooms or months in county jails for an open bed in a psychiatric hospital. The shortage of beds has been blamed on $23 million in cuts to the department’s state appropriations between FY 2001 and 2002. 8

  • In the absence of fully funded services and treatments, many people with mental illness find themselves warehoused in our nation’s prisons, jails and juvenile justice systems. Fifty to 75 percent of young people in juvenile justice facilities have at least one mental disorder. Many have multiple diagnoses and co-occurring substance abuse problems. 6, 7, 8

  • Comprehensive community-based mental health services for children and adolescents can cut public hospital admissions and lengths of stay, and reduce average days of juvenile detention by about 40 percent. 9

  • Under-funded mental health systems are associated with high levels of homelessness and poverty. On any given night, more than 600,000 people are homeless in the U.S., of which one-third have a serious mental illness.10

Medicaid Background

  • Medicaid, established in 1965 and jointly funded by the federal and state governments, is a health insurance program that provides medical assistance to individuals and families with low incomes and few resources. It covers approximately 36 million people, including children, older adults, people with disabilities and people who are eligible to receive federally assisted income maintenance payments. 9

  • Within the broad national guidelines provided by the federal government, each state establishes its own eligibility standards; determines the type, amount, duration and scope of services; sets the rate of payment for services; and administers its own program.11

For More Information

For more information or referrals for local services, contact your local mental health association or the NMHA Resource Center.

National Mental Health Association
2000 North Beauregard Street, 6th Floor
Alexandria, VA 22311
Phone: 800-969-6642 (NMHA)
TTY: 800-433-5959
www.nmha.org

Background
· Introduction
· Mental Health Matters
· Can’t Make the Grade
· Mental Health Statistics
· Dollars and Nonsense Pdf
· Penny-Wise & Pound-Foolish Pdf
· Investment in Children’s Mental Health Services Pdf
· Call for Investment Pdf
Advocacy Tools
· Tips for writing your policymaker
· State facts and policymakers
·
Find your legislator:
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References
1. NIMH, 1999
2. NMHA “Medicaid Reform” fact sheet, 2003
3. NIMH, 2002
4. NMHA’s Barriers to Recovery survey, 2003
5. NMHA’s State Assessment Project: Can’t Make the Grade, 2003
6. BJP, 1998; NMHA 2001
Hoberick, B. “Cutbacks blamed for rise in costs.” Tulsa World April 17, 2003
Charlotte Observer, 3/10/03
7. Shelton, D., Fisher, P., Dulcan M. Report to the Maryland Juvenile Justice Advisory Council. 1998.
8. Policy Design Team. Mental Health Needs of Youth in Virginia’s Juvenile Detention Centers. Department of Criminal Justice Services. 1994.
9. Coalition for Fairness in Mental Illness Coverage. Mental Illness Parity: Costs of Parity Coverage of Mental Illness. 1998.
10. The Center for Mental Health Services, Homeless Program branch. http://www.mentalhealth.org/cmhs/Homelessness/default.asp
11. US Health and Human Services Web site http://cms.hhs.gov/medicaid