Mental Health Association in New York State

Following is a snapshot of Governor Pataki’s 2005-06 Executive budget proposal as it relates to individuals with mental illness.

Proposed closure of Middletown Psychiatric Center (PC), with beds to be consolidated at Rockland Psychiatric Center, to take place April 1, 2006. As part of this proposal, the Governor recommends that 100% of the $7M in operating costs associated with Middletown PC be Reinvested to expand state-operated community services within Orange and Sullivan counties, which are currently served by Middletown PC.

On top of last year’s $7.7M cut in Local Assistance for mental health in 2004-05, the Governor proposes an additional $3.9M cut for 2005-06 for Local Assistance. While details have yet to be worked out, it appears that such savings will be achieved “by reducing or eliminating funding to local mental health providers that are underperforming, delivering less cost effective services, or whose agency administration and overhead costs are higher than system-wide averages.”

Savings realized by eliminating inefficiencies in Local Assistance funding and savings resulting from Federal Medicaid maximization would be redirected to provide $6.5M for an increase in the stipends for community providers for the operation of supported housing beds.

Changes are proposed to the Family Health Plus program, which provides access to comprehensive health coverage for eligible low-income adults who do not have insurance through their employers, yet have incomes that do not qualify them for other publicly financed health programs. Such changes would include “making the benefit package consistent with that offered through Healthy New York.” It appears that this would include dropping coverage of mental health services from Family Health Plus, altogether.

Responding to the calls for Medicaid relief coming from counties throughout the state, the Governor proposes a series of changes to reduce costs associated with Medicaid. Included in these reforms is a cap on the county share of Medicaid costs up to the amount they will have spent in 2005 and a proposed state takeover of local Medicaid costs effective in 2008.

As in previous years, the Governor proposes the creation of a Preferred Drug Program (PDP) to achieve savings in Medicaid for prescription drugs. Atypical anti-psychotics, anti-depressants, anti-retrovirals used for treatment of HIV/AIDS, and anti-rejection drugs used for organ transplants are exempted.

The Governor proposes elimination of coverage under Medicaid for psychological, dental and podiatric services. In addition, modifications will be made to the reimbursements provided for transportation under Medicaid.

Merges the Commission on Quality of Care for the Mentally Disabled (CQC) with the Office of Advocate for Persons with Disabilities (APD) to create the Commission on Quality of Care and Advocacy for Persons with Disabilities.

$24M for freestanding Article 31 mental health clinic programs to provide for workforce enhancements and to improve quality of care.

; $32M for court ordered Assisted Outpatient Treatment (Kendra’s Law), case management and the Medication Grants Program. With Kendra’s Law due to expire on June 30th, extension of the law will be considered by the legislature this session.

In conjunction with the Office of Children and Family Services, OMH will establish a demonstration project to create 245 new waiver slots through the Home and Community Based Waiver program.

In collaboration with the Department of Corrections, OMH proposes $7M in continued funding to expand mental health treatment capacity and clinical staffing for prisoners with mental illness.

$10M in continued funding for adult home residents, including an additional 3500 case management slots for adult home residents living with mental illness.

Continued funding for research at the NY Psychiatric Institute in Manhattan and the Nathan S. Kline Institute at Rockland PC.

$1M to for the eating disorders centers of excellence legislation passed in 2004.

$2M to comply with the fingerprinting legislation passed in 2004 for mental health direct care staff.