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January 25, 2007

1800 DESCEND ON ALBANY FOR CAMPAIGN FOR
MENTAL HEALTH HOUSING RALLY

On Tuesday, January 23rd, 2007 the Campaign for Mental Health Housing and the Association for Community Living (ACL) sponsored a Rally to preserve, reform and develop housing for people with mental illness in New York State. Approximately 1800 people came to Albany to participate in the rally and lobby day. This was the largest mental health rally ever held in New York.

For more information on the Campaign for Mental Health Housing, visit our website at www.campaign4housing.org.

MHANYS SEEKS PROJECT COORDINATOR: 21 hrs. per wk. for private nonprofit agency. Experienced self-starter to promote, sustain, and enhance efforts to improve services and living conditions for parents living with mental illness. Excellent oral and written communication skills and training experience are crucial. Some travel required. Master’s Degree in mental health field, knowledge off Microsoft Office Suite. Great work environment and good benefits. Equal Opportunity Employer. E-mail cover letter and resume to hdavis@mhanys.org or fax to (518) 427-8676

IN THE NEWS:

Governor Mulls Budget Cuts To Trim Growth in Medicaid
The New York Sun, January 24, 2007
By Jacob Gershman

ALBANY — New York's health care industry is bracing for Governor Spitzer's first budget proposal, which is expected to trim about $1 billion out of projected growth in Medicaid, sources said.

Mr. Spitzer and his budget director, Paul Francis, are wrapping up the governor's spending plan for the 2007–2008 fiscal year, which the governor is due to present to the Legislature by the end of the month.

Perhaps the most closely watched element of the budget is in the area of Medicaid, whose growth the governor has pledged to curtail to pay for high-profile priorities, such as Mr. Spitzer's plan to give homeowners a $1.5 billion property tax break and a campaign promise to settle a multibillion-dollar lawsuit brought by the Campaign for Fiscal Equity that concerns funding for New York City public schools.

Sources say Mr. Spitzer will propose a Medicaid package that slows down built-in inflationary growth in the health care industry by reducing what is known as the trend factor, an automatic adjustment in reimbursement rates that helps hospitals, nursing homes, and doctors keep up with the rising costs of doing business.

The reductions won't translate into an overall lowering of Medicaid spending in absolute terms year to year. State budget officials had predicted that the state would be spending roughly $1.5 billion more out of its operating fund on Medicaid in the upcoming budget. Mr. Spitzer could be scaling back that growth to about $500 million. Taking into account this year's $2 billion surplus, budget officials have estimated that the governor would need to trim $2 billion from the budget to deliver on his big-ticket campaign promises and balance the books.

A major portion of the budget is mandated spending in which the governor has little power to change. Traditionally, in times of deficits, there are two fatty areas in the budget that New York governors have relied on for emergency trimming: education and Medicaid. In this year's case, Mr. Spitzer has pledged to increase education spending, which leaves Medicaid on the chopping block.

The state's major hospital associations, which are already absorbing the probable loss of nine hospitals slated for closure by Mr. Pataki's health care commission, are aware of the reality. "We know we're going to fight a battle," a hospital source told The New York Sun.

Mr. Spitzer has indicated that he would put to rest a lawsuit and complaints from city officials that the state is under-funding the city's public school system by proposing in his budget a plan to increase school aid by at least $4 billion over the next four years. One education source said Mr. Spitzer is sticking with that figure, even though the state's highest court ruled last year that the state owed the city less than $2 billion. Mr. Spitzer, however, is still counting on the Bloomberg administration to share the burden of the $4-billion plan and is in talks with the mayor's office to reach a deal.

To pay for extra statewide school funding, Mr. Spitzer may change how education funding is distributed among upstate New York, Long Island, and the city. The city, which traditionally receives 38.86% of state education funding, and less wealthy districts in upstate areas could wind up with a greater share than usual. The changes could upset what is known as the "shares" system, leaving Long Island with a smaller slice of the pie.

For weeks, Mr. Spitzer has been foreshadowing cuts in the health industry. In his State of the State address that he delivered early this month, Mr. Spitzer made particular note of Medicaid's explosive growth, saying, "In just the last 15 years, state spending on Medicaid as a share of the budget's General Fund has increased from 14% to 35%. These are dollars we have made an affirmative decision not to spend on education, tax cuts, infrastructure or the kind of health care investments that are so desperately needed."

On the campaign trail, Mr. Spitzer said he would find $1 billion in savings from Medicaid, but offered less controversial belt-tightening measures, like added fraud prevention mechanisms and efficiencies through electronic billing.

While Mr. Spitzer will propose other cost-saving measures, it's likely that any changes to the trend factor will provoke the most uproar in the health-care industry, an influential interest group in Albany that was highly successful in lobbying the Legislature to reverse the bulk of Medicaid cuts that Mr. Pataki proposed in his budgets.

In last year's executive budget, Mr. Pataki called for a slightly larger reduction in Medicaid. But his threats vanished after hospital groups orchestrated a massive advertising campaign that accused the governor of risking the lives of babies. In the end last year, Mr. Pataki backed down and agreed to restore most of his cuts.

This year, the political equation has changed. With a new, popular governor having supplanted a lame duck executive, hospital sources say they have less power to demand that lawmakers come to their rescue.

Meanwhile, sources say Mr. Spitzer won't be addressing charter schools or civil confinement in his budget and plans to separately negotiate deals on those two issues. That would represent a change in tactics from the Pataki administration, which sometimes embedded less popular measures in the budget to gain leverage over them.


Mental-Health Law on the Books, but State and Insurers Play Catch-Up
The Ithaca Journal, January 20, 2007
By Cara Matthews, Gannett News Service

ALBANY -- New Year's brought a law mandating equal coverage for mental and physical illnesses, along with scrambling by insurers to comply and many unanswered questions about a special small-business benefit that could cost the state nearly $100 million annually.

It all comes down to timing. Or better yet, a lack of time.

The Assembly didn't approve the legislation, often called Timothy's Law, until Dec. 13, with a provision that it become effective Jan. 1. Then-Gov. George Pataki signed it Dec. 22, voicing clear doubts it could be implemented in 10 days. Gov. Eliot Spitzer took over on New Year's Day, and a leadership change in many state agencies, including the Insurance Department, has followed.

The short time frame was not enough for insurers to make all the changes ordered in the legislation, which prohibits higher co-payments, deductibles and other restrictions on care for mental illness that don't apply to physical ailments.

Insurance industry representatives said they're doing the best they can to comply. There are "thousands of man hours" involved in changing computer systems and training staff, said Jim Redmond, a spokesman for Excellus Blue Cross Blue Shield, Rochester region, which has about 2 million members upstate.

Normally, insurers would get six months to a year to put such a complex mandate into effect, Redmond said.

"It's a little like trying to tune the motor on a car while the engine's running," he said.

In fact, various health insurance companies, including Excellus BCBS, want to push back the effective date four to six months, Redmond said.

The industry has not received a response to the request and is moving forward with implementation, said Leslie Moran of the New York Health Plan Association, which represents managed-care plans.

Moran said her group needs many questions answered, particularly about small-business benefits.

"There's a tremendous consumer expectation in terms of coverage and plans haven't been told what rules they're playing by," she said.

As for consumers, they become entitled to the new level of care when their insurance plan is renewed with the state -- a number are renewed in January but there isn't one universal date for all companies -- even if their insurers or companies don't yet have all the updated paperwork, technology and staff expertise that usually coincides with such changes.

Under the legislation, insurance plans have to allow at least 30 inpatient treatment days and 20 outpatient visits for mental illness each year. The state will cover the extra cost for businesses with fewer than 50 employees. Larger businesses have to provide a higher base level of care and additional coverage for children. People with coverage are supposed to receive written notice of the change before it becomes available, the law states.

The law is named for the late Timothy O'Clair of Schenectady, who took his own life in 2001 at age 12. His family had limited mental-health coverage and had to give up custody of him so he would qualify for state-paid treatment. Timothy's father, Tom O'Clair, lobbied extensively for the new law.

It is unclear exactly how many people the law will apply to, but activists claim it could be up to 5 million people or more. It does not cover companies that are self-insured, which are exempt under federal law. It excludes about 900,000 low-income residents in Family Health Plus and Child Health Plus, extensions of the federal Medicaid program for the poor. Healthy New York, a low-cost, low-benefit insurance product employers buy into, is not included either.

The approximately 1 million government employees, retirees and family members who are in the state's Empire Plan are now eligible for the higher level of care, and about 1 million people in plans for small businesses will be covered too.

The state's superintendent of insurance is charged with developing a mechanism to cover the cost of additional premiums for small businesses. That has yet to be completed. Advocates for Timothy's Law said they learned in talks with the Pataki administration that the small-business benefit would cost the state an estimated $90 million a year. The price tag for extended coverage for the Empire Plan employees could be several million dollars annually.

The Insurance Department, which has primary responsibility for implementing the law, does not know yet when new regulations will be in place, spokesman Chapin Fay said.

"Really everything's up in the air and small businesses are still awaiting word of how the mechanics of this benefit will work," said Chris Koetzle, a vice president with Support Services Alliance for small businesses, which has about 14,000 members in the state.

The state should consider putting some money into a public education campaign, said Shelly Nortz of the Coalition for the Homeless, which pushed for the law.

"This is massive change in public policy," she said.

It will be a "bumpy ride" at first, she said. "There's all kinds of complexity to this that I think is worth taking your time on," she said.


Held by Pataki, Sex Offenders Are Released
The New York Sun, January 23, 2007
By Joseph Goldstein

Two sex offenders were released this month from the mental hospitals where they have been involuntarily held since their prison sentences ended.

They are the first sex offenders to be released since the state's highest court ruled that prison officials acted illegally by transferring more than 100 sex offenders to mental hospitals without a court order. Governor Pataki ordered the transfers in 2005.

The releases this month were not ordered by a court but came after state psychologists for the Office of Mental Health decided the two did not require civil confinement, an official there told The New York Sun.

The decision to release the men moots a court hearing that was expected to take place in the coming weeks regarding their confinement. At that hearing, lawyers for Attorney General Cuomo were expected to argue that the men should remain confined. A spokesman for Mr. Cuomo said the Office of Mental Health, not the attorney general, makes decisions regarding releases.

"It is their call," the spokesman, John Milgrim, said.

One of the men released was convicted more than 15 years ago of 2nd degree assault, a lawyer with knowledge of the case said. The lawyer, who spoke on the condition of anonymity, said the conviction was connected to charges that the man had committed a rape in Queens. The convict is not listed in either the online or telephone directory of registered sex offenders in New York. The second man who was released is a registered sex offender; no additional information about him was available.

Both were released within the last two weeks — one from the Manhattan Psychiatric Center and the other from the Kirby Forensic Psychiatric Center — the lawyer said.

In the past two years, psychologists for the Office of Mental Health approved transferring about 120 sex offenders, including the two just released, to psychiatric institutions in order to prevent their release from state custody. One state judge, Jacqueline Silbermann, has called into question whether the psychological assessments by state doctors showed the need for civil confinement in each case.

Although New York has no law for confining sex offenders at the end of their prison sentences, Mr. Pataki used a civil law not intended for inmates to detain the men in mental hospitals. Last November, the Court of Appeals in Albany ruled that this policy denied sex offenders the due process to which they were entitled. The court did not order their release but did order "immediate" hearings to be held.

The official in the Office of Mental Health Services said hearings for about 50 of the offenders are pending.

The two sex offenders released this month are not the first to be released since Mr. Pataki initiated his policy. Prior to the Court of Appeals decision, five other sex offenders being held in psychiatric institutions were also released, the mental health official said.

"There have been a number of people who have been released, including individuals who never belonged in the system to begin with," the deputy director of Mental Hygiene Legal Service, which represents the men, Stephen Harkavy, told the Sun. Mr. Pataki's policy, Mr. Harkavy said, "ignored due process protections that would have prevented erroneous hospitalization."

A spokesman for Mr. Pataki, David Catalfamo, said the release of the men was "of great concern."