The Boston Globe, Thursday, April 27, 1995
State says HMOs fall shy on Medicaid mental health care

Private health maintenance organizations under contract to the state are providing far less mental health care to Medicaid recipients than the the commonwealth pays for, state officials say, with as much as $18 million a year in public funds unaccounted for. 

In a stern letter to 12 HMOs, a copy of which was obtained by the Globe, officials from the Division of Medical Assistance said they have  "serious concerns" about the adequacy of mental health and substance abuse services for Medicaid recipients, noting that the HMOs are falling short of their contractual obligations to the 90,000 Medicaid enrollees by as much as $17 per month 3 per patient.

"This is a scandal" said Dr. Elis Newberger, a pediatrician at Children's Hospital and president of the  Massachusetts Committee for Children and Youth, an advocacy group. To hear that there have been resources that in effect have been siphoned away from mental health when we have such a vast community of need in children and adults is sickening."

In the letter, Meryl Friedman director of the HMO program for t the state division, warned the HMOs that unless they took steps to improve delivery of mental health and substance abuse care to their Medicaid subscribers, they would be cut out of any future contracts for such services.

Robert Hughes, president of Massachusetts Association for HMOs, questioned the accuracy of the state's figures and said the letter lumps the HMOs together and "paints with too broad a brush."  "This is not the first time that Medicaid has made serious errors in data and fact," Hughes said. "I think the plans have worked very hard to service Medicaid recipients well."

State officials and advocates, however, say that many troubled children and adults are not getting the mental health services they need from HMOs. It is not until these people are in crisis, either suicidal or homicidal, that some then obtain help from other strapped state agencies, such as the Department of Mental Health and the Department of Social Services

"We do have the issue of HMOs treating kids for a short period of time and then recommending that those families seek DSS contracts for continuing service," said Linda Carlisle, commissioner of DSS. "And we do know that the majority of these kids are on Medicaid."

Some social service advocates say this means that taxpayers may be spending twice over for the same people, particularly children who have been traumatized by sexual or physical abuse and need intensive mental health care, such as home based services or residential care.

"It's double-dipping if these HMOs are getting blank dollars to provide services to Johnny Jones, but Johnny Jones is getting those services on a DSS or DMH or [Department of Youth Services] contract," said Linda Luongo, former first deputy state auditor and now a management consultant on human services. Other private insurers are also doing this, she said, "but the HMOs are the worst offenders."

In her letter, dated April 20, Friedman said her staff "continued to observe a major gap between the Division's expectations and the delivery of such services" by the HMOs. The state reimburses HMOs approximately $22 per member per month for mental health and substance services, the letter said, while the contracted HMOs deliver only $! to $5 worth per member per month in mental health and substance services to their Medicaid enrollees.

Michael Bailit, deputy commissioner of the division, said yesterday that $22 per member per month was the average amount spent on the 390,000 Medicaid recipients who receive their mental health and substance abuse services not from the HMOs but from Mental Health Management of America, a for-profit company based in Tennessee.

"That is our identification of the upper payment limit that should be spent on mental health and substance abuse services," Bailit said. "We are not saying that that's what these HMOs have to spend, just that ;here is too big a discrepancy between what they are spending and this upper limit."

Dr. Dan H. Rome, associate medical director for mental health services for Tufts Associated Health Plan, says Tut'ts is spending as much as three times more on Medicaid patients than the average $4 to $5 per patient per month cited in the state letter.

"We were surprised and distressed by the recent somewhat boilerplate letter because at our review last July we were told we are doing a good job," Rome said.

Tuft's, with 5,244 Medicaid enrollees, is the fourth-largest provider. The top three are Neighborhood Health Plan with 81,271 enrollees, Harvard Community Health Plan, with 14,901, and HMO Blue, run by Blue Cross/Blue Shield, with 12,280.

Hughes, the HMO association president, said he thinks the letter that went out last week was motivated by state officials' desire to bring all mental health and substance abuse services for Medicaid patients under the jurisdiction of Mental Health Management of America, the Tennessee-based company, or whatever managed-care company wins the new contract in July.

State offiicials dispute that assertion. Bailit said the state has tried for years to get the HMOs to improve their mental health services and while some strides have been made, progress has been excruciatingly slow.

Many mental health advocates agreed. They said that the kind of gatekeeping mechanisms that HMOs put in place, such as requiring subscribers to see their primary care physician first and then get a referral for mental health services, end up being barriers to care for this population. In addition, many HMOs do not provide the home-based services many of these families need.

"This is a very highly stressed and disorganized population, and they are easily discouraged by barriers," said Hugh Leightman, administrative director of Wediko Children's Center, a mental health service for high-risk children. "These people need intensive home-based services and outreach, and you can't expect them to always come to every appointment."

"Most at risk of falling through the cracks," Leightman said, "are poor children traumatized by physical and sexual abuse."  State officials also raised this concern in their letter, citing a lack of providers with expertise in sexual abuse and "a lack of multilingual providers who can treat recipients in their primary language."

"Given the slow rate of progress of HMOs in this area over the last three to four years, the division may be forced to carve mental health services out  from the HMOs' juristiction," Friedman's letter concluded "unless performance dramatically improves before the end of 1995."

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