Medicaid’s role in low income individuals access to mental health services

Medicaid plays a significant role in providing treatment for low income individuals with mental health conditions. Medicaid recipients usage of mental health services “is comparable to and sometimes greater” than usage among privately insured individuals, according to a Kaiser Family Foundation (KFF) analysis. In 2015, Medicaid covered 22 percent of nonelderly adults with mental illness and 26 percent of nonelderly adults with serious mental illness. KFF found that Medicaid coverage of mental health services is often more comprehensive than private insurance coverage.

Analysis Findings

The analysis (1) describes individuals with mental health conditions, and (2) compares the mental health needs and the receipt of services among individuals without insurance, with Medicaid, and with private insurance. KFF provided the following findings:

  • Characteristics of nonelderly adults with mental illness. Twenty percent of nonelderly adults have a mental illness. They are predominantly white, female, and under 50. Five percent have a serious mental illness. Most are employed (63 percent), but 4 in ten have low incomes and 22 percent are below poverty. In addition, nonelderly adults with mental illness often have co-morbid conditions.
  • Utilization of mental health services. Most nonelderly adults with mental illness have either Medicaid or private insurance. Those with Medicaid are more likely to receive treatment than those with private insurance or without insurance. In addition, the receipt of psychiatric medication is more common among those individuals covered by Medicaid.

The role of Medicaid expansion

The Patient Protection and Affordable Care Act (PPACA) (P.L. 111-148) and the Health Care and Education Reconciliation Act of 2010 (HCERA) (P.L. 111-152), (together referred to as the Affordable Care Act (ACA)) expanded Medicaid coverage to millions of low-income Americans. Sections 2001 and 2002 of the PPACA as amended by 1004 and 1201 of HCERA enabled many low-income individuals with mental health conditions to obtain coverage and access treatment through state Medicaid programs that choose to expand.

KFF pointed out that the American Health Care Act of 2017 (AHCA) (H.R. 1628), introduced by Republicans and passed by the House of Representatives on May 4, 2017 would limit enhanced federal support for the expansion population. The Congressional Budget Office projected that the reduction in federal funds would result in a cut of $834 billion over 10 years. “A reduction in federal funds of this magnitude would likely cause states to decrease Medicaid payment rates, covered services, and/or eligibility, limiting states’ ability to reach people with mental health conditions,” KFF said.

How the AHCA directly impacts significant parts of the ACA

Six weeks after pulling the American Health Care Act (AHCA) (H.R. 1628) from consideration, the House of Representatives passed an amended version of the bill on May 4, 2017, by a vote of 217 to 213. The legislation makes significant changes to some parts of the Patient Protection and Affordable Care Act (ACA) (P.L. 111-148), in particular repealing the employer and individual mandates; scaling back Medicaid expansion; and repealing many of the taxes included in the ACA. The House also passed H.R. 2192, which would eliminate provisions that exempt members of Congress and congressional staff from state waiver provisions, in response to criticisms that the AHCA would affect all Americans except those voting on the bill (see The AHCA strikes back, Health Law Daily, May 4, 2017).

The Senate is now considering the legislation, and is likely to make substantial changes to the AHCA, or even start from scratch on new legislation. Moderate Republican senators in particular are concerned about the changes to Medicaid coverage that roll back the ACA’s expansion of the program.

This White Paper will compare provisions of the AHCA with the ACA. One thing to note at the outset is that the ACA as enacted in March 2010 included 10 titles, while the AHCA makes significant changes to only three of the titles. Much of the ACA, especially related to the Medicare program and the training of various types of medical practitioners, therefore, would remain intact if the AHCA passes in its current form.

In addition, the Trump Administration has stated more than once that it sees the rollback of the ACA as occurring in three stages—(1) legislation to repeal or change ACA provisions that would allow the Senate to pass a bill with a bare majority under the budget reconciliation process; (2) administrative actions to provide patients with additional insurance options and give states more flexibility in Medicaid spending, and (3) legislation on Trump’s other priorities including sale of health insurance across state lines and medical tort reform (see Is the American Health Care Act a ‘critical first step’ or unsupportable?, Health Law Daily, March 8, 2017).

Read further, “How the AHCA directly impacts significant parts of the ACA.”

For more information, visit http://health.wolterskluwerlb.com or call 800-449-6435.

Seniors, disabled could find services impacted by per capita caps

The implementation of per capita caps on Medicaid funding would not account for the disproportionate amount of program spending on certain groups of Medicaid enrollees. The Kaiser Family Foundation’s (KFF) issue brief on state variation in spending, issued in light of the American Health Care Act’s (AHCA) (H.R. 1628) proposed spending limits, notes that although seniors and the disabled make up 23 percent of Medicaid enrollment, 64 percent of program funds are spent on these groups.

Populations

Children and nonelderly adults with disabilities account for spending three times greater than their enrollment share, and spending on seniors is slightly more than double their enrollment share. These groups have greater health needs and use more acute care and long-term care services as opposed to those who are enrolled based only on income. Children without disabilities cost an average of $2,463 in 2011, while disabled children cost $16,802. Per enrollee spending on nonelderly adults with disabilities was $3,247, while spending for nonelderly disabled adults was $16,613 and spending for seniors was $13,249.

State programs

Spending also varied widely by state: Tennessee spent $6,945 per disabled child while New Hampshire spent $53,557. Some states spend less than $15,000 on disabled adults and seniors, while others pay $25,000 or more. This disparity stems from various coverage pathways offered to seniors and the disabled either at higher income levels or for some significantly disabled children regardless of parental income, provided at a state’s discretion. Variation in spending levels also depends on how many receive community care versus institutional care, with some states targeting home- and community-based services to those who are at risk of needing institutional care in the future. Other states offer personal care or attendant care services.

The brief pointed out that changing the federal Medicaid payment structure from guaranteed payments to states to a per capita cap could bind states to their current coverage provision, locking in these differences between states. In addition, these caps would not account for spending on newly discovered drugs or treatments, and could hamper state responses to emergency situations such as natural disasters like Hurricane Katrina or issues like the opioid epidemic and the Flint water crisis. States may be forced to cut some services they have chosen to provide under their Medicaid programs due to limit federal funding, such as long-term care services, which could especially impact seniors and the disabled.

Experts weigh in on LTC requirements for patient care, provider compliance

On October 4, 2016, CMS issue a Final rule making extensive changes to long term care facilities (LTCFs) requirements of participation (ROP) with the goal of aligning LTCF requirements with current clinical practice standards to improve resident safety and the quality and effectiveness of the care and services delivered to residents. Kris D’Ann Maples, in-house counsel at Hillcrest Health Services and Lyn Bentley, MSW, Vice President, Quality and Regulatory Affairs, American Health Care Association (AHCA), addressed significant provisions of the new rules that will impact health care providers at the 2017 Health Care Compliance Association Compliance Institute on March 26, 2017.

The Final rule

The new requirements (81 FR 68688, October 4, 2016) represent the first significant revision of LTCF requirements for Medicare and Medicaid since 1991. The revised requirements are aimed at reducing unnecessary hospitalizations and health care acquired infections, improving behavioral health care, safeguarding LTCFs residents from the use of unnecessary psychotropic drugs, enhancing care planning, and improving quality assurance and performance improvement. In addition to the changes to the requirements, CMS is developing a new survey process that will go into effect November 2017. The new survey process incorporates the new requirements and merges with the quality indicator system. The LTC rules take effect in three phases. Phase 1 took effect November 28, 2016, Phase 2 will take effect November 28, 2017, and Phase 3 is scheduled for November 28, 2018.

Maples told attendees to be on the alert to changes in the regulations prior to implementation dates based on the current administration’s plan to abolish the Patient Protection and Affordable Care Act (ACA) (P.L. 111-148). Section 6102(b) of the ACA amended Social Security Act Sec. 1128I, and mandated the operating organization have a compliance and ethics program in place. Such programs must be effective in preventing and detecting criminal, civil, and administrative violations under the Social Security Act and promoting quality of care consistent with the regulations promulgated by the HHS Secretary working with the HHS Office of Inspector General (OIG).

Themes of the rule

Bentley noted that the Final rule reflects the dramatic cultural and technology changes over three decades. She recommended providers closely read the new definitions CMS included in the Final rule, emphasizing that CMS has changed the definition of a number of terms. Among the themes identified by Bentley are patient centered-care, facility based-responsibility, quality of care and quality of life, and the changing patient population, which includes patients with behavioral health issues. Regarding facility-based responsibilities, Bentley pointed out that LTCFs must know the center, patients and staff, which requires a competency-based approach.

Residents’ rights

Bentley added that the new rule that requires LTCFs to establish a grievance policy, notify residents how and where to file a grievance, and identify a grievance officer who would be responsible for grievance process. Among the grievance officer’s responsibilities are receiving and tracking grievances, leading investigations, maintaining confidentiality, meeting documentation requirements, and issuing decisions to the resident. In addition, the grievance officer must coordinate with state and federal agencies and meet state and federal laws and regulations (42 C.F.R. Sec. 483.10(j)). The regulation also includes additional notification requirements.

Significant is use of the word “willful” in the definition of abuse as it relates to the regulation addressing freedom from abuse, neglect, and exploitation (42 C.F.R. Sec. 483.12). Bentley specifically pointed out that “willful” in the definition means that “the individual acted deliberately, not that the individual intended to inflict injury or harm.” According to the Bentley, the term “willful” as used in the definition could raise serious questions about behavior that would not be considered abuse. For example, if a nurse is bathing a patient in one bed and she sees the patient in nearby bed about to fall, while preventing the patient about to fall from falling, the other patient might try to get out of bed and fall. In this case, the nurse’s actions were deliberate and there was no intention to inflict injury or harm to the patient that she was bathing.

Compliance and Ethics rules

New regulations (42 C.F.R. Sec. 483.85) require the operating organization for each LTCF to have a compliance and ethics program that meets certain requirements in the rule by November 28, 2017 (Phase 2), and the other requirements implemented by November 28, 2019 (Phase 3). Maples explained that the Final rule codifies the OIG compliance program guidance from 2000 and 2008 and that compliance will be part of the survey process going forward.

Maples identified the minimum components of a compliance program, which must be in place by November 28, 2017. These components include:

1. written compliance and ethics standards; policies and procedures that reduce the prospect of criminal, civil, and administrative violations under the law and promote quality of care;
2. corrective/disciplinary standards that outline consequences of committing violations, are enforced consistently, and provide consequences for failure to detect or report a violation;
3. the designation of a “high level” individual” in the organization who oversees compliance and ethics program;
4. sufficient resources and authority given the designated high level individual to reasonably assure program standards are met;
5. effectively communicate standards policies and procedures, including mandatory training; and
6. taking reasonable steps after a violation.

According to Maples, by the Phase 3 effective date, LTCFs must have had an annual review of the program to make any changes to reflect changes in applicable laws and regulations and improve performance promoting quality of care and deterring False Claims Act violations. LTCFs that have five or more facilities must conduct annual compliance training for all staff member, designate a compliance officer whose major responsibility in operating the compliance program requires the individual to report directly to the organizations governing body and cannot report to the general counsel, chief operating officer, or chief operating officer.