State Budget Needs to Adequately Fund Community-Based Mental Health and Substance Use Services
The New Jersey Legislature's FY 2017 budget passed in both the
Senate and Assembly. At $34.8 billion, ut us$275 million greater
than the latest budget proposed by Governor Christie. The New
Jersey Association of Mental Health and Addiction Agencies, Inc.
(NJAMHAA) is pleased that the Legislature's proposed budget
includes the restoration of $50 million of hospital charity care
funding, $20 million for one-time Community Provider Contract
Adjustments and a $2.4 million Child Collaborative Mental Health
Care Pilot. NJAMHAA advocates for the Legislators to ensure that
these funding additions stay in the budget. It is equally
critical that the $127.5 million of state and federal funds,
which have been dedicated to increase Medicaid Fee-for-Service
(FFS) reimbursement rates for community mental health and
substance use services, are appropriately distributed and used to
sufficiently increase rates so that services can continue to be
provided for New Jersey's most vulnerable residents.
"We have been advocating strongly and persistently for increased
rates for outpatient services, psychiatric evaluations,
medication monitoring, Community Support Services [CSS], partial
care and partial hospitalization services. We appreciate that the
Department of Human Services has increased some of these rates
and is still re-evaluating others. However, the increases that
have been made are not sufficient to cover the costs of providing
care and will result in tens of thousands of New Jersey residents
losing services that have enabled them to make great progress
toward wellness and recovery," said Debra L. Wentz, PhD,
President and Chief Executive Officer of NJAMHAA. CSS is a new
service category for clinical and case management services that
are being separated from housing in what was previously known as
Supportive Housing.
In a survey of NJAMHAA member providers, 37 of 55 agencies
reported an anticipated negative impact of the inadequate FFS
rates and 34 programs in these agencies, mostly outpatient, would
most likely close as a result. Hospital-based mental health
providers, the Early Intervention Support Services programs
(which are designed to bring individuals from emergency rooms and
prevent inpatient hospital admissions) and other mental health
providers rely on outpatient service programs to provide the
appropriate level of care for the long term. However, the
insufficient rates for outpatient mental health programs will
lead to many thousands of individuals losing this service,
including 6,000 to 7,000 people in Bergen County alone and more
than 20,000 statewide.
"Inadequate rates will also prevent individuals who develop
mental healthcare and substance use treatment needs in the future
from receiving the care they need. The number of people in need
of services continues to increase due to natural and manmade
disasters, fiscal crises and their impact on long-term
unemployment and other traumatic situations. Furthermore, mental
illnesses and substance use disorders are illnesses that are
highly prevalent and need to be diagnosed and treated as soon as
possible and as consistently as possible to maximize the
opportunities for recovery, lifelong wellness and prevention of
the need for much more costly hospital services," Dr. Wentz
added.
The Fee-for-Service rates must fully cover the costs of these
vital services, including the parts of services that are billable
to Medicaid and those that are not. The rates must also cover all
overhead costs and other expenses incurred in the operation of
the provider organizations. Providers need to be able to pay
competitive salaries and benefits in order to recruit and retain
staff so that the individuals they serve can receive consistent,
high-quality services.
"It is imperative that community-based mental health and
substance use providers be adequately funded to ensure they
remain fiscally viable and continually able to deliver their
invaluable services to everyone in need. The lives of New Jersey
residents and our state's fiscal strength depend on it," Dr.
Wentz stated.