Can't Make the Grade - The Consequences of Cutting Mental Health Funding …

According to NMHA’s State Mental Health Assessment Project, Can’t Make the Grade, at least 29 states have cut funding for mental health services as they have struggled to address major budget shortfalls and skyrocketing healthcare costs. States are facing nearly $80 billion in budget shortfalls in 2004 with no relief in sight. To address these shortfalls, states have reduced Medicaid eligibility, limited Medicaid services, reduced access to medications, and cut funding for mental health programs. For people with mental illness, the results have been devastating.
  • Oklahoma's Mental Health Commissioner told State lawmakers that recent budget cutbacks for community-based mental health programs seem to be sending clients into more expensive crisis centers. Patients at the Tulsa Center for Behavioral Health increased 49% between October 2002 and March of 2003. (Tulsa World, 4/17/03).

  • After further across-the-board budget cuts in Colorado, emergency rooms have reported dramatic increases in visits from psychiatric patients. By some estimates, programs that serve persons with mental illness will lose $20 million in 2003 alone (Rocky Mountain News, 12/13/02; 12/16/02).

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· Introduction
· Executive Summary 740k PDF
· Full Report 267k PDF
· Report Fact Sheet
· Press Release
· Access to Medications Update
· State Press Releases
· W.K. Kellogg Foundation
· Community Voices

 

  • Due to state budget problems, the Connecticut Department of Mental Health and Addiction Services has cut 244 positions - 5.8 percent of its workforce. As part of these cuts, the department closed one of the lead mental health agencies in the state (MHA of Connecticut, 2003).

  • On April 1, Massachusetts officials finalized rules to restrict access to almost all brand-name antidepressants, despite the opposition of mental health advocates (Boston Globe, 4/2/03).

  • Dane County, Wisconsin - renowned for premier mental health services - has waiting lists of up to a year for many adult and juvenile mental health services as a result of funding cuts from state and federal sources. The result has been increased pressure on local resources -- the county has more than doubled its contribution in the last 10 years, spending $6 million a year in county tax dollars (Wisconsin State, 3/16/03).

  • After the implementation of a preferred drug list in Michigan, 66 percent of hotline callers reported delay, denial or switching of their medications with negative consequences (MHA in Michigan, 2003).

  • In Montana, funding for the mental health agency has now been cut over half a dozen times in the last year. The Governor has increased co-pays for both Medicaid and SCHIP, and has proposed to limit physician visits for the aged and disabled to 10 per year (MHA of Montana, 2003; T.II.C.A.N.N., 4/23/03).

  • More than 36,000 unemployed adults in Massachusetts lost their Medicaid health insurance coverage after last-minute efforts to reverse program budget cuts failed. Those affected who have substance abuse or mental health problems will lose coverage for basic care, forcing them to visit emergency rooms for treatment, health care advocates warned (Boston Globe, 4/23/03).

  • Facing a $1.8 billion deficit in 2003, and a $9.9 billion projected shortfall for 2004-05, Texas agencies have been directed to implement 12.5 percent budget cuts. As a result, advocates predict that 25,000 Texans with mental disorders could lose access to state assistance and two facilities that provide long-term care could close (Fort Worth Star-Telegram, 2/19/03).

  • 15,000 parents and caretakers lost Medicaid eligibility in Nebraska in 2002, and the state is now considering eliminating any coverage for poor, childless 19 and 20-year-olds (T.II.C.A.N.N., 4/23/03).

  • Although prescription drug benefits for 100,000 people under the Oregon Health Plan were restored, mental health services are still not available. Two suicides are being investigated for a possible link to the state's abrupt notification of patients about the loss of mental health services coverage due to the budget crisis (NY Times, 3/6/03).

  • Individuals with mental illnesses in South Carolina have been waiting for days in emergency rooms or months in county jails for an open psychiatric hospital bed despite the existence of 12 licensed stabilization facilities across the state. The bed shortage has been blamed on $23 million in cuts to the department's state appropriations between FY 2001 and 2002 (Charlotte Observer, 3/10/03).

  • Since 2000, the Spokane County, Washington has accumulated $1 million in charges for exceeding its maximum number of patients at Eastern State Hospital, indicating a lack of community services (Spokesman-Review, 2/26/03).

  • Maine’s governor has proposed cutting the children’s mental health services budget from $17.6 million to $5.4 million over the next two years. Services slated to be eliminated include case management, outpatient services; respite care; recreational activities; wrap-around funds and mediation services. The budget proposes increases in funding for State mental health spending under Medicaid, which gives the State $2 for every dollar spent (Portland Press Herald, 3/30/03).

What is the Price that Your State is Willing to Pay?

This project was made possible by the generous funding of the W. K. Kellogg Foundation in collaboration with the Community Voices: Healthcare for the Underserved initiative (www.communityvoices.org).

National Mental Health Association
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