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January 2005 NACBHDD Newsletter

The monthly newsletter for the National Association of County Behavioral Health and Developmental Disabilities Directors

In this Issue...

The 2005 NACBHDD Newsletter series is brought to you by:

Virginia Association of Community Services Boards

March 3-5 Legislative Conference: Register Online For Unique Opportunity to Strategize with Public Policy Experts

NACBHD’s annual Legislative Conference is scheduled for March 3-5 at the Jurys Hotel in Washington, DC. This year’s conference is a unique opportunity for members to learn first-hand about NACBHD’s legislative agenda and priorities, as well as to strategize with public policy experts. Federal, state, and local officials, and consumer advocates will present timely policy information.

Conference highlights include:

For the complete conference agenda, click here.

Hotel Reservations and Conference Registration
Hotel reservations should be made directly with the Jurys Hotel at (202) 483-6000; fax (202) 232-1130, or at www.juryswashingtondc.com. For information on conference registration, visit the conference area of the NACBHD website, or click here.

Medicaid Reform: Expect Historic Debate on Significant Cuts Soon

Information gleaned from NACBHD’s meetings with advocacy partners and from the popular media point to a historic debate about significant Medicaid cuts as part of the Medicaid Reform process to be addressed very soon by Congress and the Administration. In this context, NACBHD recently sent two important Medicaid documents to all members: 1) the January 7 Washington Update on Medicaid Reform, and 2) the January 5 letter from NACo to the President regarding the impact of Medicaid Reform on counties. For a summary of the Washington Update, see below. To view the January 5 letter from NACo to President Bush, click here. In addition to these documents, an overview of possible Congressional and Administrative Medicaid activity is provided below.

Overview
Evidence in the popular media points to a historic Congressional push to aggressively address entitlements soon. Kaiser’s “Daily Health Policy Report” reprinted a quote from Families USA executive director Ron Pollack, first reported in the January 13 Tallahassee Democrat, noting that the looming debate over Medicaid “constitutes, literally, the largest threat to public health coverage in the history of our country.” [Emphasis added] (www.kaisernetwork.org/daily_reports/rep_hpolicy_recent_rep.cfm?dr_cat=3&show=yes&dr_DateTime=19-Jan-05#27696) And, a January 10, 2005 New York Times article quotes Senate Budget Committee Chair Judd Gregg (R-N.H) as saying that that “he and other fiscal conservatives wanted to establish ‘enforcement mechanisms to put the brakes on the growth of entitlements.’” The article also discusses a White House legislative proposal, the Spending Control Act, which would put restraints on spending of benefits programs such as Medicare and Social Security, with a plan to add Medicaid to the proposal as soon as its long-term costs are reliably estimated. And, Senator Gregg plans to take a close look at Medicare. (He voted against it in 2003, calling it “fiscally irresponsible.”) (www.nytimes.com/2005/01/09/politics/09budget1.html)

In this context of an impending historic debate on a longstanding entitlement program, the following activities have taken place since the January 6 Washington Update:

January 6, 2005, Washington Update
Information in the Washington Update comes from the most recent meeting of the Medicaid Coalition, hosted by Families USA. At these meetings, which NACBHD Executive Director Melissa Staats regularly attends, policy experts familiar with Medicaid present information on possible avenues and timelines for reform, as well as information on advocacy strategies. The 109th Session of Congress began on January 4, 2005. While the immediate legislative agenda is somewhat limited and committee appointments are still pending, advocates are starting to report some early insights into the President’s 2006 Budget and potential actions of Congress. (Bush is scheduled to submit his budget proposal February 7.) Although several critical items will be debated (e.g. social security, taxes), this first Washington DC update is dedicated to the future of Medicaid in the upcoming budget debate.

Medicaid in the 2006 Budget Process
On January 4, 2005 NACBHD attended a Medicaid Coalition Meeting hosted by Families USA. Ellen Nissenbaum, Legislative Director of the Center on Budget and Policy Priorities, presented various scenarios posing threats to Medicaid, a political timetable, and potential strategy for maintaining the entitlement nature of the program.

Advocacy
The Medicaid Coalition discussed a preliminary strategy for preventing cuts or block granting. Some strategy was actually put into motion during December 2004; other strategies are in development or can be used by members at the grassroots level and may be time sensitive.

Medicaid Resources
NACBHD provided an extensive review of the possible avenues for Medicaid Reform in the 109th Congress, a discussion of the NACBHD Medicaid platform, and the perspective of the Medicaid Committee in the December newsletter. For Medicaid information and resources, including information on advocacy concerns and advocacy letters, why Congress is targeting Medicaid for cuts, and the impact of block granting, see the Families USA website at www.familiesusa.org. The information is available at the site’s Medicaid Action Center.

NACBHD will continue to keep members informed about Medicaid Reform in the newsletter and in Washington Updates.

Medicare Update: Final CMS Regulations Due Soon

The Medicare Modernization Act of 2003 (MMA) will be implemented in January 2006, with private sector drug plans offering coverage to Medicare beneficiaries. In addition, as part of the MMA, those now dually eligible for Medicare and Medicaid will be required to enroll in the new MMA program. NACBHD is following the implementation of the MMA, and in particular, its impact on dual eligibles, on several fronts. NACBHD’s Medicaid Committee is now including Medicare in its purview, and there will be a session on the MMA and its impact on counties at the March 3-5 Legislative Conference. And, NACBHD is participating in regular meetings with a coalition of advocacy groups to share concerns and discuss advocacy strategies. A summary of recent activity around the MMA, as well as what to expect next, follows.

CMS final regulations and the advocacy response to the draft guidelines
The Centers for Medicare and Medicaid Services (CMS) will issue final regulations for the Medicare drug benefit in late January or early February of this year. CMS has offered advocacy groups an opportunity to respond to its draft guidance document: CMS Formulary Review for the Medicare Prescription Drug Benefit. In response to this offer, NACBHD and over 30 other advocacy groups signed onto a December 30 letter from the Medicare Consumers Working Group, which expressed general support for CMS’ proposed review of Part D plan benefit structures and formularies “to ensure that they do not discriminate or substantially discourage enrollment by certain groups of Medicare beneficiaries.” The letter goes on to address in detail concerns around the following issues:

  1. Defining “best practice” and “medical necessity.”
  2. Determining which sector is the most appropriate benchmark for the Medicare population.
  3. Access to newly approved pharmaceuticals.
  4. Ensuring that P & T Committees function effectively.
  5. Role of clinical evidence and cost in making formulary decisions.
  6. Appropriate use of benefit management tools.
  7. Burden of beneficiaries, physicians, and pharmacists.
  8. Non-discrimination in the use of cost-sharing tiers.
  9. Review of appeals and exceptions procedures.
  10. Issues related to residents of long-term care facilities.

To review the letter from the Medicare Consumers Working Group to CMS in its entirety, click here.

USP Medicare Prescription Drug Benefit Model Guidelines
On December 31, the United States Pharmacopeia (USP) submitted its Model Guidelines to CMS. The Model Guidelines are a list of categories and classes that may be used by plans offering the Medicare drug benefit to develop their formularies. While the USP Model Guidelines are the only classification system developed for the MMA, CMS has said that it considers the USP Model Guidelines a “floor” and not an absolute requirement. To view the Model Guidelines, see www.usp.org. NAMI has expressed concerns about the USP Model Guidelines therapeutic category classification, which allows exclusion of coverage of a broad range of medications for depression. To read more about this, see www.nami.org, choose “What’s New,” then see “NAMI Submits Comments to CMS on Medicare Formulary Guidance, USP Issues Final Classification Listings.”

NACBHD will continue to report on developments in the MMA implementation in the newsletter. For an overview of the concerns and advocacy efforts related to the MMA, see the October 2004 newsletter.)

Social Security Reform: Implications for County Behavioral Health

On January 6, 2005 NACBHD attended a presentation called, “Social Security Reform Basics.” The presentation was part of the Consortium for Citizens with Disabilities (CCD) monthly meeting. The discussion was comprised of (1) a basic explanation of the program, (2) Presidents proposal and messaging, and (3) advocacy response and speculation of impacts.

“Social Security is the single largest sources of retirement income in the US. But, Social Security is more than just retirement income. About 30% of Social Security beneficiaries receive disability or survivor benefits. Social Security is also family insurance. Social Security is also the single most effective anti-poverty program there is. One out of every 4 households receives monthly benefits from Social Security. Social Security is based on the concept of insurance and as in this case, it spreads the risk broadly throughout society, to lower the costs and to make (it) affordable for all.”

Experts believe that the Presidents proposal to reform Social Security (Title II—Old Age, Survivors and Insurance—not SSI) will be based on a privatization model espoused by a recent Presidential Commission report. The two trust funds (Old Age and Survivors and the Disability Insurance) that are used to pay out benefits and coverage will be replaced with private accounts (either partially or entirely). This means that the revenues generated from payroll taxes that go into the trust funds will be diverted into private individual accounts. This approach is intended to reduce dollars needed in the trust funds and to allow individual to make their own health care choices (thereby reducing costs).

Although the Administration is trying to gain support for the Commission proposal by stating that Social Security is running out of money, the advocacy community believes that “Social Security today runs an annual surplus. The revenues received by the trust funds are larger than the annual benefit costs. According to the CBO, Social Security is projected to run surpluses for about the next three decades, until 2033. Advocates state that the private accounts are just a “cost shift” to the individual or to a family. “It changes who will pay and how the risks are borne.” Diverting funds to pay for the individual accounts (even as little as 2% of wages) will create a shortfall in the Social Security trust funds. This is why privatization plans eventually include substantial cuts in Social Security benefits.”

The CCD reported that, the main plan developed by the Presidential Commission could:

The impacts identified above also directly impact individuals with disabilities—not just retirees.

Former Utah Governor Michael Leavitt is New HHS Secretary

Former Utah Governor Michael Leavitt is the incoming Secretary for the U.S. Department of Health and Human Services (HHS). (As of January 19, he was involved in confirmation hearings with the Senate Health, Education, Labor and Pensions Committee.) If confirmed, Leavitt, 53, the current head of the Environmental Protection Agency, will be in charge of Medicare and Medicaid (which are under HHS’ Centers for Medicare and Medicaid Services), and other federal welfare programs, and he will administer the Food and Drug Administration, the Centers for Disease Control and Prevention, and the National Institutes of Health.

A January 19 Washington Times article on Leavitt’s confirmation hearing relayed the following from Leavitt’s confirmation testimony:

Families USA and the Institute for Reproductive Health Access recently hosted a conference call which allowed advocates to hear about Leavitt from Utah advocates, state officials, and others who have worked with him. NACBHD joined in the call, and participants emphasized that during Leavitt’s tenure as the Utah governor, he implemented a controversial Medicaid waiver program that expanded basic health care benefits to some uninsured adults, but reduced coverage and increased out-of-pocket costs for others on Medicaid.

NACBHD will continue to keep members updated on the new HHS Secretary.

NACBHD on the National Front

CMHS Director Kathryn Power Updates Mental Health Liaison Group on Transformation
NACBHD Executive Director Melissa Staats attended SAMHSA’s briefing of the Mental Health Liaison Group (of which NACBHD is a member) on SAMHSA’ progress in its efforts to lead the federal government in the transformation of the nation’s mental health system into a system that is consumer-driven and recovery-focused, as called for in the Final Report of the President’s Commission on Mental Health. The briefing took place December 10 in Washington, D.C.

Kathryn Power, Director of SAMHSA’s Center for Mental Health Services, presented talking points and a slide presentation that focused on the status of SAMHSA’s transformation efforts, how transformation fits into SAMHSA’s current priorities, SAMHSA’s fiscal priorities for FY 2005, and how the group can help achieve transformation. She characterized members of the Mental Health Liaison group as “essential partners” in transformation.

As Power reported, over the past year SAMHSA met with senior staff from 20 other federal agencies to discuss how to respond to the Final Report, and they identified programs that already respond to transformation. While these programs will be maintained and enhanced, new initiatives will support transformation. The outcome of this work is the Federal Action Agenda, a working document within SAMHSA approved by the Secretary of Health and Human Services, which describes how SAMHSA and its partners will respond to the Final Report. SAMHSA has already initiated several activities, including the National Consensus Conference on Mental Health Recovery (see following article). Other issues covered include the State Incentive Grants for mental health transformation, individualized plans of care, reducing and eliminating disparities, transformational leadership development, science to service, evidence-based practices, and workforce development. To view the talking points and the slide presentation, click here.

NACBHD Represented at SAMHSA’s National Consensus Conference on Mental Health Recovery
On December 16 and 17, SAMHSA’s Center for Mental Health Services, in conjunction with its Interagency Committee on Disability Research, sponsored the National Consensus Conference on Mental Health Recovery in Rockville, Maryland. The conference included consumers, family members, researchers, policy makers, public officials, and providers in a discussion to define mental health recovery and how the goal of recovery can be implemented in various levels of the mental health system.

NACBHD’s Executive Director Melissa Staats attended the conference, and reported that the discussions provided cutting edge research and literature about what works in recovery from the consumer perspective, as well as information about recovery and cultural competence and recovery over the lifespan. A full report of the conference will be issued, and will include a working definition of mental health recovery. NACBHD will update members as this information becomes available.

NACBHD and SAMHSA Meet to Discuss Transformation
NACBHD Board members met with SAMHSA officials January 12 and 13 to discuss the county government agenda for transforming the public mental health system, including the goal of recovery. A report on this meeting will be available in the February newsletter.

Update on the Campaign for Mental Health Reform

NACBHD spoke with Bill Emmet, project director at the National Association of State Mental Health Program Directors, and project director for the Campaign, about recent Campaign activities.

The “Call to Action”—the State-Informed Federal Policy Initiative
The Campaign’s project to gather information on state and local transformation efforts and determine the implications for federal policy is moving toward finalization of its report, the “Call to Action.” The Campaign is looking for an event to use as a “hook” for releasing the final report, and may produce an agenda before the whole report is released.

Legislative Activity and Plans for 2005
Emmet characterizes 2005 as a “year in which we have to play a lot of defense” in regard to Medicaid, appropriations, and the antiscreening and antipsychiatry forces gaining traction in Congress, and the Campaign wants to find sponsors for legislation in a positive and proactive way. Some legislative issues the Campaign will be working on are:

SAMHSA News

SAMHSA Launches National Suicide Prevention Lifeline: 1-800-273-TALK
As part of its National Suicide Prevention Initiative (NSPI), SAMHSA has launched the National Suicide Prevention Lifeline at (800) 273-TALK, as well as a new website at www.suicideprevention.org. The NSPI is an SAMHSA-led collaborative effort using best practices and research findings in suicide prevention and intervention to reduce suicide nationwide. Suicide is currently the 11th cause of death among all age groups in the U.S.; the implementation of a national suicide prevention strategy was one of the goals of the Final Report of the President’s Commission on Mental Health.

The National Suicide Prevention Lifeline is funded by a three-year $6.6 million grant from SAMHSA’s Center for Mental Health Services to the Mental Health Association of New York City, the National Association of State Mental Health Program Directors, Columbia University, and Rutgers University, who will administer the network of local crisis centers in communities nationwide. Trained staff at the closest certified crisis center in the network counsel callers in suicide prevention. In addition to the Lifeline and the website, a nationwide public education and suicide awareness campaign is under development. (From a December 31, 2004 SAMHSA press release and a January 5, 2005 email communication from NASMHPD.)

Important Change in SAMHSA NOFA and RFA Postings Now Effective
SAMHSA recently announced a change in its practice for publishing Notices of Funding Availability (NOFAs) and Requests for Applications (RFAs); these announcements will no longer be published in the Federal Register. Effective January 3, 2005, SAMHSA is only posting NOFAs and RFAs on the SAMHSA website at www.samhsa.gov and at www.grants.gov. Single source or limited competition announcements will continue to be published in the Federal Register.

Grant fund application materials will still be available from SAMHSA’s clearinghouses:

$70 Million Available for Drug Free Communities Support Program Grants
SAMHSA and the White House Office of National Drug Control Policy recently announced that FY 2005 funds are available for Drug Free Communities Support Program (DFCSP) grants. The $70 million available for about 700 awards are open to new applicants and those competing for renewal awards, and are for improving community efforts to plan, promote, and deliver effective substance abuse strategies. Community coalitions are eligible to apply; for eligibility requirements, see www.dfc.samhsa.gov. For applications, contact the SAMHSA clearinghouse at (800) 729-6686 or see www.grants.gov.

HHS Announcements

Discount Drug Cards for the Uninsured Now Available
HHS recently announced that discount drug cards are available for the uninsured through the Together Rx Access Card. According to a January 11 press release, cardholders may save on 275 brand-name medications, with a greater savings on generics. (The statement predicts an average 25-40% savings on prescriptions.) For more information, contact (800) 444-4106 or see www.togetherRxAccess.com.

NACo is also piloting a discount drug card program with similar projected savings. For more information on the NACo drug discount card program, see the December newsletter.

NACBHD News

Membership Campaign Still Active
The NACBHD Membership Campaign is still active. While we encourage county authorities to join at any time, now is a particularly opportune moment to join us as we celebrate our 10th anniversary and as we embark on an exciting year of advocacy and influence as we work with our policy partners during this critical time in the mental health, developmental disability, and substance abuse communities. And to strengthen county behavioral health authorities’ concerns on Capitol Hill, NACBHD is now an affiliate of the National Association of Counties, the official representative of counties and county governments. Click here for more information on membership benefits and to join.

Significant Discount on Manisses Publications Now Available for Members
Manisses Communications, Inc. is now offering NACBHD members substantial discounts (over 50%) on the following publications: Mental Health Weekly, Alcoholism & Drug Abuse Weekly, The Brown University Child and Adolescent Behavior Letter, and Addiction Professional. Click here for more information and an order form.


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