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Volume 3 Issue 3 April 2004  

Governor McGreevey’s Proposed Fiscal Year 2005 Budget 

Governor Refuses to Ignore the Problems we Face

Governor McGreevey understands that we are at a stage where mature, responsible leadership is essential.  His budget reflects his  belief that the state bears responsibility for children and adults with mental illness.

Most states are choosing to shrink the health care safety net for their poorest and most politically defenseless residents.  Officials in 34 states are opting to slash Medicaid and poor children’s health insurance coverage as a path of least resistance to a balanced budget; showing a remarkable indifference to those whose lives with which they have been entrusted.

We thank Governor McGreevey for refusing to ignore the problems that we face.

Continuum of Care for Adult Consumers

  • Redirection II: The budget includes an increase of 7.4 million (3.4 million to annualize FY ‘04 programs and 4 million for new programs).

  • Community Provider Contracts: The budget includes a 1% increase to agencies in the community which provide supported employment services, counseling, medication management, partial care, residential care, PACT, ICMS, and crisis intervention to consumers.

MHANJ fully supports the Governor’s proposal to fund Redirection II, which reforms the state mental health system from one in which  consumers are institutionalized in state hospitals, to one where less expensive services are present in the community.  But while Redirection II provides the policy, administration, and managerial framework for consumers’ recovery in the community, its operational arm, the 125 plus community agencies which provide hands on intervention in over one million mental health incidences/year, will see only a 1% increase - all this after flat funding last year and a significant rise in health and liability insurance costs, facility costs, and licensure fees.  MHANJ recommends a 4% increase be appropriated for community provider contracts.

If we want consumers to recover and become as independent from the system as is individually possible, they must be provided with effective, efficient., and high quality services.

Continuum of Care for Children and Adolescents

  • Child Behavioral Health Services:  The budget includes an increase of $37 million for this wrap around system of care which integrates services and funding, maintains children and families in the community, and is integral to the implementation of the Child Welfare Reform Plan.

MHANJ supports this increase in funding which will enable the program to expand community based services including mobile response, youth case management, intensive in-community services and behavioral assistance.  It will also provide for the development of  additional treatment homes (home-like settings) that would enable the Department of Human Services to divert children from, as well as step children down from, more restrictive residential settings.

·          A New Beginning: The Future of Child Welfare in NJ.: The budget includes an increase of $125 million to support child welfare reform.  Part of the new structure includes the Office of Children’s Services (OCS).  Under the OCS there will be three divisions: Division of Youth and Family Services, Division of Prevention and Community Partnerships, and Division of Child Behavioral Health Services. 

MHANJ supports the creation of this new structure.  Children with SED (Serious Emotional Disturbance) come from a variety of settings – schools, families, detention centers, DYFS.  If we want the mental health system to stop failing children, it is critical that children in all settings have access to diversified mental health services and that those treatments be coordinated across all domains.

Medicaid Fee for Service and General Assistance

  • Prescription Co-Payments: The budget includes the addition of a $2.00 co-payment capped at $10/month/person for all medications for those enrolled in Medicaid Fee for Service and General Assistance.

Mental health consumers on SSI and General Assistance do not have disposable income and often take multiple medications. National studies have shown that the proposed co-payment for prescription drugs will mean that most consumers in these programs will not purchase their necessary medications.  This will result in  increased emergency room visits, increased hospitalizations, and other serious consequences that exceed savings in drug costs. 

MHANJ opposes the implementation of a prescription co-pay in Medicaid FFS and GA.  If we want mental health consumers who are poor to maintain their recovery, and we want the state to employ sound health policy in their regard, we must oppose prescription co-payments which effectively reduces access to necessary medications.

According to the federal regulations which govern the Medicaid program, Title XIX of the Federal Social Security Act, Section 1916, (4) (e): “The State plan shall require that no provider participating under the State plan may deny care or services to an individual        eligible for such care or services under the plan on account of such individual’s inability to pay a deduction, cost sharing or similar charge.  The requirements of this subsection shall not extinguish the liability of the individual to whom the care or services were furnished for payment of the deduction, cost sharing or similar charge.”

  •  General Assistance:  The budget includes an increase of $10.4 million to support healthcare services.

MHANJ fully supports the increase to this program.  This increase reflects no policy change and only represents medical inflation and caseload growth.  Approximately 65-77% of the 23,000 – 25,000 people enrolled in GA/month, are mental health consumers.  If we want some of the poorest, sickest and most vulnerable consumers to have access to a consistent level of healthcare services, the GA medical program must keep pace with expansion and price increases.

Critical Components to Wellness and Recovery in the Community.

  • Housing.: The budget includes no increase to affordable housing programs.

 

MHANJ supports the funding of a state rental assistance program.  The lack of decent and affordable housing is one of the most serious problems facing consumers.  At a time when there are over 20,000 people on Section 8 waiting lists and most Housing Authorities are not taking names the state must take the initiative and fund a rental assistance program. 

 If we want to provide a basis for the recovery efforts of consumers in the community, they must have access to housing. 

Employment.: The budget includes no increase for long term follow-along services.

MHANJ supports funding of long term follow along supported employment services.  Employment is a critical component to recovery from mental illness.  National studies find that there is a shocking 90 percent unemployment rate among adults with serious mental illness – the worst level of employment of any group of people with disabilities.  Many consumers want to work and could work with modest assistance.  At a time when our Nation’s largest program for consumers is disability payments, the state must take the initiate and fund supported employment and other evidence based employment services.

If we want consumers to be active participants in their communities, gain a sense of self worth, and become tax paying citizens, we must fund the programs which help them to maintain competitive integrated employment.

Conclusion

In spite of recent efforts by the Administration and Legislature, our mental health system for both children and adults, remains severely under-funded and cannot meet people’s needs.  Recent increases have been for specific populations and have not enriched the entire public system.  Children and adults with mental illness need the opportunity to heal in the least restrictive setting, care that is constant and comprehensive, full access to necessary medication, the agencies which provide them services to be efficient and effective, their direct care service workers to be well-trained and consistent in their lives, paid employment,  a decent place to live, and must become part of the social contract.

Thumbs Up!

Consumer Advocates of the Month 

Susan B. Ordway

When we asked for someone to testify in favor of a 4% increase to community provider contracts at the Cost of Providing Care Coalition’s State House Press Conference on February 25th, consumer provider Susan B. Ordway stepped up to the plate.  Susan is the President and Facilitator at CSPNJs Freehold Self Help Center and was able to speak from her unique experience as both a consumer and provider about the need to increase funding for community provider contracts.  Thanks Susan!

Jim DeAnnuntis

Consumer provider Jim DeAnnuntis, testified before the Senate Budget and Appropriations Committee on the need to increase funding for agencies in the community who help consumers achieve and maintain their recovery.  Jim is a Peer Outreach Support Team (POST) worker out of the Mental Health Association of Atlantic County, and works specifically with homeless and soup kitchen clients in Atlantic County.  Jim stated, “I have depended upon these programs for most of my life.  They have helped me stay well and their support has been invaluable.  I  know the people I am serving are starting to ‘lose out’ on what I have been given and it breaks my heart.”  Thanks Jim, for your generosity of spirit and sharing your experience.

Irene Smith

Testifying before the Senate Budget and Appropriations Committee on the need for increased funding for housing and supported employment services was consumer provider Irene Smith.  Irene works as a Boarding Home Outreach worker and a Peer Outreach Support Team (POST) worker out of the Mental Health Association of Atlantic County.  As Irene stated so eloquently, “…mental health consumers CAN recover…We ARE surviving and we are becoming a help and not a burden to our society.  We work, we live and we stand tall.  If housing in NJ does not get better, we will suffer.  If our employment links are taken away….we stand to lose our futures in recovery.”

 A Race Worth Running

Good luck to Steve Jakubowyz who is running as an Independent to become a Middlesex County Freeholder!

Correction

We apologize for the misspelling of Consumer Advocate of the Month Jim Seder’s name in the March edition of The Cutting Edge.

  Join MHANJ’s Legislative Network!  Contact C. Chin at  973.571.4100 Ex. 37