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NCSL: State News

Volume 27, Issue 471

July 10, 2006

THE SOONER STATE REFORMS MEDICAID: VOUCHERS FOR THE COMMERCIAL MARKET

Christina Kent

Oklahoma has become the latest state to seek to revamp its Medicaid program by giving beneficiaries more individual responsibility. Signed June 9 by Gov. Brad Henry,

HB2842 directs the Oklahoma Health Care Authority (OCHA) to pursue federal waivers to provide most beneficiaries with age- and health status-adjusted vouchers, which would then be used to purchase coverage in qualified commercial health plans. Like the reforms being pursued by Florida and South Carolina, the law also would create personal health accounts to reward enrollees who demonstrate responsible health behaviors.

“Medicaid will overwhelm the state’s budget unless we begin taking steps now,” said Rep. Kris Steele, a leader in getting the measure passed and chair of a bipartisan task force on Medicaid reforms last year. “This begins the process of reform, and it gives Medicaid recipients more choices and more control.”

Details are scarce, because the waiver application has not yet been submitted. But the law calls for giving vouchers to all beneficiaries who are younger than age 65 and considered “insurable”—which the law defines as meaning that the cost of enrolling that individual in a private plan is equal to or less than the cost to the state of the individual’s remaining in the current Medicaid program. The program would be pilot-tested in two counties, one urban and one rural, and would go statewide by 2013 if found to be effective.

Participants would be allowed to opt out of Medicaid and use their state-allocated Medicaid “premium” to but into an employer-sponsored health plan. The law also expands the state’s current premium assistance plan from employers with 25 or fewer workers, to those with 50 or fewer employees.

The law would increase reimbursement rates to entice more providers into the program; develop a “choice counseling program” for consumers; and institute co-pays of $1 to $3 for beneficiaries with incomes between 133 percent and 185 percent of the federal poverty level (FPL). This last provision will encourage patients to develop responsibility for their care, Steele says.

Sen. Bernest Cain has doubts that the program will work. “I can’t imagine a commercial health plan [taking on the task of enrolling recipients] for the rates we pay in Medicaid,” Cain said. “You’re not going to be able to give vouchers if no plan wants to play…I hate to say it, but I’m being honest with you: I think some of this is smoke and mirrors.”

But Rep. Thad Balkman, a co-sponsor in the House, said Medicaid costs are skyrocketing, and the current plan is a much better alternative to raising taxes or downsizing the Medicaid program. “We had to look for ways to continue or improve the program with existing revenues. We worked hand-in-hand with the OHCA to look for ways to offer a patient empowerment model that would allow patients to be better served, without requiring us to spend more.”

He added he’s confident that commercial plans will step forward. “It’s a new initiative and you’re going to have doubters and questions that have to be answered. I think history will prove that this will be a model for the nation to follow.”

Like many states, Oklahoma turned to managed care to restrain costs and improve care for Medicaid beneficiaries in the 1990s, said David Blatt, director of public policy for the Community Action Project. At its apex, six plans competed for beneficiaries, but they dropped out of the program one by one, until only one plan was left—and federal rules require that beneficiaries have a choice between at least two health plans. “There is every indication that the plans will look at this, shake their heads, and say, ‘No thanks.’ It didn’t work before and I’m fairly pessimistic about the chances of it’s working again,” Blatt said.

Cain said he was particularly disappointed that the law didn’t do more to offer more long-term care alternatives to the elderly and disabled, such as assisted living and congregate housing—“that’s where you use up all your Medicaid dollars.” Oklahoma’s current Medicaid program pays only for some home-based or nursing home care.


PRESCRIBING RIGHTS FOR PSYCHOLOGISTS: EXPANDING ACCESS IN RURAL AREAS

Matthew Gever

Between “The Sopranos,” “Frazier” and the countless neurotic comedians on late night television, one might think that everyone these days is seeing a psychiatrist. That’s not the case in rural communities. Mental health workers, psychiatrists in particular, are in short supply in rural America. “The mental health-care crisis responder for most rural Americans is a law enforcement officer,” said Dennis Mohatt, with the Western Interstate Commission on Higher Education.

“Virtually all of the rural counties in this country have a shortage of practicing psychiatrists, psychologists, and social workers,” states a report from the President’s New Freedom Commission on Mental Health. “Of the 1,669 federally designated mental health professional shortage areas, more than 85 percent are rural…In addition, particular shortages exist for mental health providers who serve children, adolescents and older Americans.”

To alleviate this shortage, at least one territory and a few states have expanded the scope of practice of psychologists in order to allow them to prescribe medication. There are roughly 179,000 psychologists in the country, according to the Bureau of Labor Statistics, compared to 40,000 psychiatrists.

The Guam Legislature was first to act, unanimously overriding a gubernatorial veto in 1998 in order to put into law B 695, which allows psychologists to prescribe if they have a collaborative agreement with a physician. At the time, the territory had only five psychiatrists to serve 160,000 residents and 1 million tourists.

On July 1, 2002, New Mexico became the first state to grant psychologists prescribing rights. When HB 170 was passed, only 18 psychiatrists were practicing in New Mexico outside of the Albuquerque and Santa Fe areas, compared to 176 psychologists, according to the American Psychological Association. Patients in rural areas often had to wait up to five months to see a psychiatrist.

To qualify for prescription rights, a psychologist must complete 450 hours of classroom instruction, 80 hours of clinical training and 400 hours of supervised treatment involving at least 100 patients. Upon completion, a provisional prescribing certificate is granted for two years, with physician supervision required. Independent prescribing is permitted after two years.

“Psychologists in the program are located all over the state, so no doubt [the law] will increase access,” said Elaine Levine, director of the Southwestern Institute for the Advancement of Psychotherapy, the New Mexico psychopharmacology training program for psychologists. Levine is one of the four psychologists in the state who are licensed to prescribe without a physician’s oversight.

The institute currently has 50 more psychologists who have finished the academic program and are now in supervised treatment settings, many of which are rural. On the whole, “physicians have been open and helpful,” Levine said.

However, many psychiatrists are opposed. “It's a terrible policy,” said Dr. George Greer, legislative representative for the Psychiatric Medical Association of New Mexico. “A little knowledge is dangerous, especially when it involves prescribing drugs for potentially life-threatening illnesses that can also have potentially life-threatening side effects.”

CAJUN COUNTRY ACTS

Louisiana is the only other state that allows psychologists to prescribe. In the Bayou State, a total of 518 psychiatrists serve a population of 4.5 million, which translates to one psychiatrist for every 9,000 residents.

To address this shortage, the Legislature passed HB 1426 in 2004. Before the law was enacted, a psychologist could only recommend a medication to a patient’s physician, who would then have to approve and prescribe it or reject it, explained bill co-sponsor Senator Donald Hines, who is a physician. That meant extra doctor visits and more time taken before a patient could receive medication.

To obtain prescribing rights, a psychologist must earn a master’s degree in clinical psychopharmacology, pass a national proficiency exam and be licensed by the state. No medical supervision is necessary. “We haven’t had one problem yet that I know of,” said Hines. “These guys know more about psychopharmacology than most physicians.”

The most recent state to look at this issue is Hawaii, where the House passed HB 2589 during the 2006 session. The bill would allow psychologists with five or more years of practice to apply for the right to prescribe. The legislation stalled in the Senate; however, the Commerce, Consumer Protection and Housing Committee approved a resolution calling for a report on the issue of prescription authority in time for the 2007 legislative session.

The legislation would require lengthy education and training for psychologists, and those who complete it would be allowed to practice only in the network of 13 federally funded health clinics that provide care to the poor and uninsured.

Currently, primary-care physicians in community health centers work with psychologists to determine the proper medications for a patient, said bill co-sponsor Sen. Rosalyn Baker. “The goal of the bill is to foster [further] collaboration” between the health professions.

Baker noted that the primary opposition to the bill came from organized medical groups such as the American Medical Association and the American Psychiatric Association. “We have to get out of the notion that it’s one profession against another,” she added.

In Lousiana, “Non-psychiatric physicians seem happy to work professionally with us,” said Lawrence E. Klusman, a prescribing psychologist and psychopharmacology chair of the Louisiana Psychological Association. “I personally have been well received by virtually every physician I have called regarding medication. There is some soft information that the psychiatrists in the state have reluctantly accepted that we are here to stay and that we will have an increasingly important role in health care.”


PREGNANT WOMEN AND METH: WHAT’S THE BEST COURSE?

Christina Kent

Methamphetamine differs from other illicit drugs in many ways—one of them is its relative popularity with women. Roughly half of all people who enter treatment for meth use disorders are women. In contrast, the ratio of those who seek treatment for all substance use disorders is three men to one woman.

Now, as the meth “epidemic” enters its second decade, overall treatment admissions for meth use disorders are rising—and they’re increasing fastest for women, some of whom are pregnant. The phenomenon has resurrected an old debate: what’s the best way to protect the health and wellbeing of an addicted pregnant woman and her child? Law enforcement or treatment? Or both? Meth and other stimulants seriously jeopardize the development of the fetal brain and other organs, and they’re linked to difficulty in sucking and swallowing, as well as hypersensitivity to touch after birth.

Some states are turning to criminal justice. Currently, 16 states have laws that consider prenatal substance use to be child abuse. In the 2006 session, Idaho considered making it a Class D felony for pregnant women to knowingly consume a controlled substance, or to permit a child to ingest such a substance (SB1337). Rather than sending the woman straight to jail, the court would have to first consider placing her in drug treatment or drug court.

Indiana debated SB0129, which would make it a Class D felony for pregnant women to consume a controlled substance. If the substance was cocaine, meth or a schedule I or II narcotic, the felony would be a Class C. The Hoosier State passed HB1314, which requires the state Department of Health to study the use of drugs, alcohol and tobacco by pregnant women, and to issue a report before Oct. 1, 2006.  

Other states are taking the approach of expanding access to treatment and other services for pregnant women.

Hawaii recently became the 20th state to enact a law expanding services to pregnant women with substance use disorders. In June, the Governor signed HB2045, which will establish a three-year pilot perinatal clinic at the University of Hawaii.

Funded with $400,000 in general revenues for FY 2006-2007, the clinic will provide substance use treatment, prenatal and postpartum care and other services to women who have used meth and/or other substances. The program (which also will rely on Medicaid funds) is expected to produce healthier babies who can be raised by their now-sober mothers. Many studies show better outcomes for children when they are raised by their biological parents, rather than placed in foster or other care. (For more on this, see the National Coalition for Child Protection Reform.)

“My experience has been that most of the women are not doing it (using meth) to hurt their babies, they just don’t know how to get off it,” said bill sponsor Sen. Rosalyn Baker. “We don’t throw people into jail for smoking—even though it’s proven to have adverse health effects such as low birth-weight babies and pre-term births.” The bill sunsets in 2009. “We will have to appropriate more money, but once we get it started, I can’t imagine that we won’t,” Baker said.

An analysis of the Hawaii bill by legislative staff states that criminal prosecution may serve as a hindrance to obtaining prenatal care. In South Carolina, Cornelia Whitner was prosecuted after testing positive for crack cocaine during her pregnancy. Subsequently, the Supreme Court upheld a ruling that made it mandatory in South Carolina to report suspected drug use by pregnant women. After the Whitner prosecution and the court ruling, the number of pregnant women who entered drug treatment programs dropped and the infant mortality rate rose. “Women have said they would not seek prenatal care if they risked being incarcerated for substance use,” Nancy K. Young, director of Children and Family Futures, of the National Center on Substance Abuse and Child Welfare, told the U.S. Senate Finance Committee (click here for hearing testimony).

Studies have shown that treatment for meth use disorders is as effective as treatment for other substance use disorders. In a sample of women followed for four years, 30 percent remained continuously abstinent from meth for the entire 48 months. However, the percentage of treatment programs that provide special services to pregnant and post-partum women has decreased in the past few years.

Portions of this story were adapted from an upcoming story in NCSL’s State Legislatures Magazine.

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© Copyright 2006, State Health Notes

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