The Bazelon Center for Mental Health Law


 

 

Bazelon Center Mental Health Policy Reporter

Welcome to the Bazelon Center Mental Health Policy Reporter. Available exclusively online and to our email subscribers, the Reporter supplements the Bazelon Center's Action Alerts by providing a periodic bulletin on significant policy developments that affect people with mental illnesses.

Volume VI, No. 4, August 6, 2007

Congress Gets Busy on Issues Important to People with Mental Disabilities; CMS Issues Final Medicaid Rules for Documenting Citizenship

In this issue:

Action Alert

Newsbyte

Despite Congress’ intense focus on the Iraq war, immigration and the Justice Department, people with disabilities could benefit from a spate of recent legislation—bills that could improve their access to needed healthcare and income support and restore protections against discrimination based on disability. Now comes the August recess, when advocates have a chance to meet Senators and Representatives at home to urge their support of these bills (see the What You Can Do section at the end of each description). Also positive is the loosening of citizenship-documentation requirements for Medicaid eligibility, reflecting thousands of public comments. Thank you, advocates! Still, there are thorns among summer’s roses: proposed ID requirements for low-income people who seek housing assistance—a major barrier for homeless people. Action is needed to delete this amendment to an important housing bill.


Mental Health Parity Edges Closer

Enactment of parity for mental health and substance abuse coverage in the group health insurance market grew closer in the House with the Education and Labor Committee’s 33-9 approval of the Paul Wellstone Mental Health and Equity Addiction Act of 2007 (H.R. 1424). Members rejected by 16-27 an effort to substitute an amended version of the (weaker) Senate bill (S. 558, sponsored by Senators Edward Kennedy, Pete Domenici and Mike Enzi). (See coverage in the Bazelon Center’s February 2007 Mental Health Policy Reporter.)

Two other committees (Ways and Means and Energy and Commerce) share jurisdiction over H.R. 1424 and it is unclear when they will consider the legislation. A recent cost estimate by the consulting firm Milliman, Inc. found that the cost for employers would increase by only 0.6 percent or less if H.R. 1424 becomes law.

For additional information see the press statement by the chairman of the House committee.

Meanwhile, S. 558 continues its struggle to Senate passage. Prior to adjournment for the August recess, sponsors unsuccessfully sought to bring a modified version to the floor for passage. The modification drops language that would have preempted state parity laws, vastly improving the Senate bill.

What You Can Do

Contact your Senators and Representative and urge them to support enactment of comprehensive mental health parity legislation that will truly end the health insurance discrimination that today deprives children and adults of needed mental health treatment.


SCHIP Would Expand Children’s Healthcare

Despite Presidential threats of a veto, the House and Senate both succeeded in passing slightly differing legislation to renew the State Children’s Health Insurance Program (SCHIP), despite efforts by some Republicans to derail the process through committee stall tactics and alternative proposals and amendments that would undermine access to healthcare for uninsured children in America.

The Senate bill (H.R. 970) passed by 68-31 on August 2. It would provide $35 billion over five years and includes mental health parity benefits for children enrolled in SCHIP plans. The parity provisions would prohibit discriminatory limits on mental health care in SCHIP plans by directing that any financial requirements or treatment limitations that apply to mental health or substance abuse services be no more restrictive than those that apply to other medical services. It also eliminates a provision in current SCHIP law that allows states to lower the amount of mental health coverage they provide to children in SCHIP to 75 percent of the coverage provided in the benchmark plans listed in the statute as models for states to use in developing their SCHIP plans. (See Bazelon policy director Chris Koyanagi’s testimony on the subject.) Senators John Kerry (D-MA) and Gordon Smith (R-OR) led efforts in the Finance Committee to include the parity provisions that were part of the bill (S. 1337, the Children’s Mental Health Parity Act) they introduced with Senators Edward Kennedy (D-MA) and Pete Domenici (R-NM).

The House passed the Children’s Health and Medicare Protection Act (CHAMP Act, H.R. 3162) by 225-204, providing $50 billion over five years. As called for by Representative Tammy Baldwin (D-WI), Patrick Kennedy (D-RI) and Jim Ramstad (R-MN), it too would end the discrimination facing children in states that have chosen to reduce mental health benefits in benchmark plans

The House bill has a bonus for adults, in the form of welcome changes to Medicare. It would update Medicare’s mental health benefit. A significant number of Medicare beneficiaries are non-elderly, have a disability, and qualify through the Social Security Disability Insurance (SSDI) program. Up to 40 percent have a mental disorder. They face discriminatory 50-percent co-payments for outpatient mental health services, compared to 20 percent for other outpatient services. The CHAMP Act would end that discrepancy by making Medicare responsible for 80 percent of the cost of outpatient mental health services.

The House bill would also put a welcome hold on the Administration’s efforts to limit reimbursement of services under Medicaid’s Rehabilitation Option and to end Medicaid reimbursement of school-based administration or transportation costs. It would do this by placing a one-year moratorium (from the date of enactment) that prohibits the Secretary of the Department of Health and Human Services from issuing any rules or taking any administrative action to restrict coverage of or payment for rehabilitation services or school-based administration, transportation or medical services that would be more restrictive those in effect as of July 1, 2007. This provision is a victory for people who rely on Medicaid’s rehabilitation services option for critical intensive community services that promotes recovery and the ability to thrive in the community.

SCHIP expires September 30, so there will be pressure for a conference as soon as Congress returns after Labor Day. The President has threatened to veto SCHIP expansion on grounds that the added cost would increase taxes and unduly expand the federal government's role in health care. House and Senate lawmakers chosen to reconcile the two SCHIP-renewal bills will face a tough challenge to produce legislation that will be approved in both chambers and withstand a Presidential veto.


What You Can Do

The August recess offers an opportunity to urge support in conference. Ask your Senators and Representative to support SCHIP legislation as outlined in the House bill to:

  • provide $50 billion in new funding to allow eligible children to access health care;
  • mandate Medicare mental health parity for outpatient co-payments; and
  • include language curtailing the Administration’s restriction on reimbursement for Medicaid’s Rehabilitation Option and Medicaid’s school based transportation/administration services.

Also encourage them to support the Senate’s language providing mental health parity in all plans that enroll SCHIP children.


Support Needed for TANF Legislation

Senators Gordon Smith (R-OR) and Kent Conrad (D-ND) have introduced legislation that would give states the flexibility to provide services that help move TANF beneficiaries with disabilities into gainful employment. The Pathways to Independence Act, S. 1730, would make modest changes to the current Temporary Assistance to Needy Families (TANF) law.

Under current law, states must satisfy high work-participation standards for welfare recipients, including individuals with disabilities. A state receives TANF credit when recipients participate in a narrow set of activities for a specified number of hours each week. At the same time, the Americans with Disabilities Act (ADA) and the Rehabilitation Act of 1973 require states to provide modified work requirements for individuals with disabilities. The result is that a state may provide the ADA-required modification for people with disabilities only to find that the modified work requirements did not meet the narrow criteria for TANF credit. A state that has complied with the ADA and ensured that TANF recipients with disabilities are actively engaged in activities designed to help them secure employment—the goal of the TANF statute—has thus increased the likelihood that it will fail to meet its TANF work-requirement standard and face fiscal penalties.

The Smith-Conrad Pathways to Independence Act would reward, rather than penalize, states that engage individuals with disabilities in work activities. Under S. 1730, an individual with a disability who complies with his or her ADA-modified employment plan would count as credit toward a state’s TANF work-participation rate, regardless of whether the nature of the activities or the number of hours match the federal TANF requirements.

The Pathways to Independence Act defines a disability as a mental or physical impairment, including a substance abuse disorder. People who have been determined by a professional to have a disability—or individuals caring for someone with a disability—who participate in a modified employment plan will count toward a state’s TANF credit. Two specific groups of people would be limited from the TANF work-participation rate: individuals who qualify for Social Security Income (SSI) or who have SSI applications pending, and people with severe temporary illnesses related to recovery from a serious surgery.

The Pathways to Independence Act is a modest proposal and would incur no federal cost. It simply gives states more flexibility in selecting how to spend their fixed TANF block grant.

What You Can Do

S. 1730 was referred to the Senate Committee on Finance. Support is needed from all Senators to get this important legislation enacted this year. Please contact your Senators and urge them to co-sponsor the Pathways to Independence Act.


CLASS Act Would Pay for Long-Term Assistance

Senators Edward Kennedy (D-MA) and Tom Harkin (D-IA) and Representatives Frank Pallone (D-NJ) and John Dingell (D-MI) have introduced the Community Living Assistant Services and Supports (CLASS Act, S. 1758, H. R. 3001). The CLASS Act would create a nationwide public insurance program to help pay for the long-tem services and supports required by the millions of Americans who become functionally disabled.

Approximately 10 million adults in America currently need long-term services and supports, and studies indicate that aging baby boomers will double that total by 2040. The services and supports they need include buying a wheelchair, making modifications to a home, hiring a driver or hiring a personal assistant or attendant.

The CLASS Act would provide cash benefits of up to $100 a day (adjusted annually for inflation and based on a disability determination) to purchase the services and supports a recipient needs to retain independence and remain active in community life. The program would supplement, not replace, benefits from public or private insurance programs. Structurally, it would create an “Independence Fund,” into which all program premiums are paid.

Enrollment in the CLASS Act program would be available to working individuals age 18 and older who are employed or self-employed and to their non-employed spouses. An individual’s premium level would be determined by when the person enrolls into the CLASS Act program. A person who enrolls during the first year of eligibility (whether the first year of the program, the year the person turns 18 or when the person is first employed) would pay a flat, low-level premium not to exceed $30 a month. Someone who enrolls after the first year of eligibility would pay a higher premium. An individual need only be employed at the time of enrollment. Someone who retires or becomes unemployed will can remain a participant by continuing to pay the monthly premiums.

Under the proposed legislation, a CLASS program participant must make premium contributions into the Independence Fund for at least five years (60 months) before qualifying to receive the benefits. Eligibility for benefits is based on an individual’s need in performing activities of daily life, including eating, toileting, transferring, bathing, dressing and continence. Significantly, the CLASS Act does not differentiate between individuals with physical disabilities and mental health disabilities. So long as a CLASS program participant is determined to need assistance in performing at least two daily activities, he or she would qualify for benefits regardless of cause. Benefits would range from $50 to $100 a day, based on need; the greater the need, the larger the benefit. Disability determinations are made by the State Disability Determination Services, contracted by the Department of Health and Human Services.

Once a determination of need has been made, a participant would receive the cash benefits in a Life Independence Account, deposited monthly. CLASS benefits may be rolled over from month to month to pay for larger purchases, but not year to year. At the end of a 12-month period, any money remaining in a participant’s Life Independence Account would be returned to the Independence Fund.

The bill imposes no lifetime limit on the amount an individual can receive. So long as the need continues for assistance in performing two or more daily activities, the participant would remain entitled to CLASS Act benefits.

“ The CLASS Act is a cost-effective way to ensure that individuals maintain freedom of choice throughout every stage of life,” said Senator Harkin. “This bill paves the way for more Americans to live independently and with dignity.”

What You Can Do

The CLASS Act is a bipartisan, comprehensive approach to financing long-term services and supports for the people who need them, while also emphasizing choice, independence and empowerment. Support is needed from members of Congress to get this important legislation enacted this year. Advocates are encouraged to contact your Senators and Representative and urge them to co-sponsor the CLASS Act: S. 1758 in the Senate and H.R. 3001 in the House.

Bill Would Restore Disability Rights

On the Americans with Disabilities Act’s 17th anniversary, bipartisan sponsors in both houses of Congress introduced legislation to restore the protections that courts have gradually eroded, largely at the behest of businesses. (See the Bazelon Center’s July 23 Action Alert.) In the House, Rep. Steny Hoyer (D-MD) introduced the ADA Restoration Act of 2007, H.R. 3195. To date it has 153 co-sponsors, led by Rep. James Sensenbrenner (D-WI). The Senate version, S. 1881, was introduced by Tom Harkin (D-IA) and Arlen Specter (R-PA).

The bill points out that Supreme Court decisions “have unduly narrowed the broad scope” of the ADA, “eliminating protection for a broad range of individuals who Congress intended to protect.” It therefore proposes amendments “to reinstate original congressional intent by clarifying that ADA protection is available for all individuals who are subjected to adverse treatment based on actual or perceived impairment, or record of impairment, or are adversely affected by prejudiced attitudes…” The language makes clear that these amendments cover participation “in all aspects of society,” not just employment. And they would eliminate the Catch 22 created by Supreme Court decisions holding that if a disability is managed by “mitigating measures” like medication, the individual is not considered disabled for purposes of the ADA.

What You Can Do

Both bills have been referred to committees. As you contact your legislators during the August recess, please urge them to sign on as co-sponsors if they haven’t already done so, and to press for passage of the ADA Restoration Act in September.

Positive Behavior for Effective Schools Act Introduced

Representatives Phil Hare (D-IL), David Loebsack (D-IA), Lynn Woolsey (D-CA) and Danny Davis (D-IL) introduced legislation to help schools meet the twin challenges of improving academic achievement and fostering a school climate that promotes learning. The Positive Behavior for Effective Schools Act (H.R. 3407) takes a proactive approach to help education systems meet these challenges through the promotion of school-wide positive behavior supports (PBS), shown to reduce disciplinary problems and increase test scores. (See a description of the Bazelon Center report, Way to Go, for details about PBS.)

The Positive Behavior for Effective Schools Act will give schools the tools and opportunity to change how they respond to students, reinforce desired behaviors and eliminate inadvertent reinforcements for problem behavior. These steps can help realize the goals of academic and social success for all students. Specifically, through amendments to the Education and Secondary Education Act, the legislation would allow and encourage schools and localities to support PBS. It would also support research, technical assistance and related school-reform activities that improve school climate. The bill would also establish a new office in the Department of Education to help coordinate and administer assistance to mental health and related service professionals who work with students on PBS and other evidence-based approaches to help improve their academic and behavioral outcomes.

The Coalition for Promoting School Success for All Students (chaired by the Bazelon Center) has been meeting regularly this Congress to interject PBS into the debate on renewal of the No Child Left Behind Act. (See our support letter.) We are pleased that Representative Hare has taken the lead on this important issue and hope for a Senate version.

What You Can Do

Contact your Representative during the August recess and ask him or her to co-sponsor the Positive Behavior for Effective Schools Act (H.R. 3407). See the letter sent by Rep. Hare to his colleagues, urging support.

Mental Health in the Schools Act Introduced in House

Representative Janet Napolitano (D-CA) has introduced the companion version to S. 1332, the Mental Health in Schools Act sponsored by Senators Edward Kennedy (D-MA), Pete Domenici (R-NM) and Michael Enzi (R-WY) (see the Bazelon Center’s June 29 Policy Reporter). The bill would increase funding for the Safe Schools-Healthy Students program to enable states to expand school-based mental health services for children in K-12. It allows for a flexible, state-based approach to creating a comprehensive mental health school-program and promotes formal collaboration between families, schools, welfare agencies, and substance abuse and mental health systems. The legislation also encourages schools to implement positive behavioral interventions and supports (PBIS) into their school curriculum. See a summary of the bill and an organizational support letter.

Action Alert

ID Requirements Threaten Access to Housing

The Congressional fever to exclude illegal immigrants reached beyond healthcare entitlements, into the realm of housing. The Federal Housing Finance Reform Act, H.R. 1427, aims to increase affordable housing for low-income and homeless individuals through the regulation of housing-related government enterprises. On May 22, 2007, while the bill was on the House floor, Amendment No. 8 was attached. This amendment ostensibly seeks to prevent illegal immigrants from owning or renting housing built from the affordable housing fund, by imposing an identification requirement on anyone receiving housing or assistance under the Act.

Under Amendment No. 8, acceptable identification includes a Social Security card with photo identification, a REAL ID card, a passport or photo-identification card issued by the Department of Homeland Security. Unfortunately, this amendment would hurt the same population the bill seeks to help: the homeless.

Because homeless people usually have no place to store possessions, they often lose their belongings, including their identification cards. Without documentation, such as a birth certificate, it is impossible to obtain a state-issued ID. An April 2004 report by the National Law Center on Homelessness and Poverty (NLCHP) surveyed 25,000 homeless individuals in 16 states, finding that they have great difficulty providing such documentation. The NLCHP described their plight as a classic Catch-22, “needing an ID to get an ID.” The identification requirement of Amendment No. 8 would keep many homeless people from accessing the housing they desperately need—the very housing that the Act seeks to provide.

H.R. 1427 passed the House with Amendment No. 8 attached and is now before the Senate Committee on Banking and Housing. The Bazelon Center asks you to help us defeat this harmful amendment.

What You Can Do

Call or email your Senators and encourage them to support the Federal Housing Finance Reform Act, but seek removal of language that would deny many homeless people access to the housing they desperately need (the Amendment 8 barrier).

Set up a visit with your Representative in his or her district office in August when Congress is in recess to discuss Amendment No. 8 and to explain the difficulties that homeless people in your district have with identification.

Newsbyte

Medicaid Citizenship Requirements Finalized

Responding to concerns expressed in more than 1,400 public comments, the Centers for Medicare and Medicaid Services (CMS) exempted more Medicaid recipients from having to document their identity and citizenship, as required by the Deficit Reduction Act (DRA), and made it easier for others to do so. (See the Bazelon Center’s July 19, 2006 Action Alert.) The final rules, published in the July 13, 2007 Federal Register, also reflect changes enacted as part of the Tax Relief and Health Care Act of 2006 (TRHCA).

Final rule expands exemption

Until last year, Medicaid applicants in most states were only required to self-attest to U.S. citizenship under penalty of perjury. The new Medicaid requirement was enacted with the support of policymakers who asserted that illegal immigrants were falsely claiming citizenship.

Under the DRA, all new Medicaid applicants and all beneficiaries undergoing their first redetermination after July 1, 2006 must provide documentation of citizenship and identity. The interim rule, issued on July 12, 2006, exempted individuals receiving Medicare and Social Security Income (SSI) because they had already met documentation requirements. The final rules significantly expand this exemption to include individuals who have been found eligible for Social Security Disability Insurance (SSDI).

In addition, responding to concerns that many children in foster care would have a hard time documenting citizenship and would therefore be at risk of foregoing necessary health care coverage under Medicaid, the final rule also exempts children receiving adoption assistance or foster care payments under the Adoption Assistance and Child Welfare Act.

Final rule expands acceptable documentation

Medicaid eligibility is conditioned on evidence of both citizenship status and identity. The rules list a hierarchy of acceptable documents, starting with a U.S. passport or naturalization certificate as primary documents that verify both citizenship and identity. A second level, for which separate proof of identity is required, includes such items as a birth certificate or adoption decree or a record of military service that shows a U.S. place of birth. The interim rules list various other documents as third- or fourth-level proof.

The final rules expand the list of acceptable documents. As third-level evidence of citizenship, an individual may now provide religious records recorded in the U.S. within three months of birth, as well as early school records. The Roll of Alaska Natives was also approved as fourth-level evidence of citizenship, specifically documents issued by a recognized Indian Tribe that evidence membership, enrollment or affiliation with that tribe.
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In addition to proving citizenship, individuals must document their identity. Various photo-ID cards are acceptable, including driver’s licenses and school and other government-agency IDs. The final rules approved the use of three or more corroborating documents, such as marriage licenses, divorce decrees, high school diplomas and employer ID cards, to document an individual’s identity.

Notably, the final rules also expanded the use of identity-affidavits, which could only be used in rare circumstances under the Interim rules. Identity-affidavits may now be used for children up to age 16 (18 in limited circumstances) and for disabled individuals in residential care facilities.

The final rule also makes final a CMS policy change that will extend Medicaid benefits for up to the first year of life to a newborn whose mother was receiving Medicaid on the date of the child’s birth, regardless of the mother’s immigration status.

The new law does not apply to applicants and recipients who are legal immigrants. Such individuals must continue to provide documentation of their immigration status, as previously required.

Independent studies find high cost for both citizens and government

Alarmingly, two independent reports have found that Medicaid’s citizenship documentation requirements under the interim rules caused eligible citizens to lose Medicaid coverage, while not achieving their ostensible goal of saving taxpayers money. The first, an investigation by the Government Accountability Office (GAO), entitled States Reported That Citizenship Documentation Requirement Resulted in Enrollment Declines for Eligible Citizens and Posed Administrative Burdens (GAO-07-889), details the barriers to access that eligible citizens have faced when trying to secure Medicaid coverage under the new documentation requirements. Twenty-two of 44 states studied blame the new requirements for a decline in eligible citizens’ Medicaid enrollment and delays in obtaining coverage.

The second study, led by the majority staff of the House Committee on Oversight and Government Reform, based its findings on an investigation of nine states. Committee Chairman Henry A. Waxman (D-CA) said that the study that found for every $100 spent by federal taxpayers to administer the documentation requirements, the federal government saved only 14 cents. “By way of comparison,” Representative Waxman explained, “for every $100 the Office of the Inspector General of the Department of Health and Human Service expends to investigate waste, fraud and abuse, the federal government recovers nearly $13,000.”

Both studies raise serious questions about the citizenship-documentation requirements. Both suggest that the new Medicaid requirements do not reduce the “fraudulent use of taxpayer resources due to the use of Medicaid benefits by illegal aliens,” as proponents argued when the proposal was inserted in the 2005 Deficit Reduction Act, but actually bar eligible U.S. citizens from the receiving coverage they need.

SCHIP bills would also loosen citizenship requirements


The State Children’s Health Insurance Plan (SCHIP), up for reauthorization September 30, 2007 (see above), includes the Medicaid citizenship-documentation requirement in Subtitle E section 143. Under the program, Medicaid’s final documentation rule applies to SCHIP beneficiaries, but with greater flexibility and options that aim to lower administrative barriers to enrollment.

In both the House and Senate SCHIP bills, all newborns within their first year of life are extended SCHIP eligibility through Medicaid, regardless of the mother’s immigration status. Both SCHIP reauthorization bills also allow Tribal Membership documentation to be used as satisfactory evidence of nationality or citizenship.

Most important, both versions of the SCHIP reauthorization bill give states the option of returning to pre-July 1, 2006 citizenship-documentation requirements for children, so long as the state submits to an audit of a sample of cases to demonstrate compliance. This option ultimately allows states to determine criteria, no more restrictive than the final Medicaid requirements, for citizenship determinations.

The Senate SCHIP reauthorization goes a step further in reducing administrative barriers to enrollment. It encourages states to standardize their enrollment procedures and eliminates the requirement for face-to-face interviews to complete enrollment in public health programs.


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  Judge David L. Bazelon Center for Mental Health Law
1101 15th Street, NW, Suite 1212
Washington, DC 20005

Phone: 202-467-5730
Fax: 202-223-0409
Email: webmaster@bazelon.org

 
Judge David L. Bazelon Center for Mental Health Law
1101 15th Street, NW, Suite 1212
Washington, DC 20005

Phone: 202-467-5730
Fax: 202-223-0409
Email: webmaster@bazelon.org