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NMHA News Release October 8, 1999
  Contact: Government Affairs
(703) 684-7722
House Passes Patients Bill Of Rights Overwhelmingly & Senate Approves $70 Million For Mental Health Block

"It was quite a day for the mental health field," says Faenza
House Passes
Very Good
Managed Care Bill:
In a stunning vote, the House of Representatives passed the Norwood/Dingell Managed Care Patients Bill of Rights Act (H.R. 2723). The bill passed despite the determined opposition of both the House Republican leadership as well as the business community and the entire insurance industry. Since 170 Americans get their mental health insurance coverage through various managed care arrangements, our community has an enormous stake in the outcome of this legislative battle. H.R. 2723 will now advance to a conference committee with the Senate were its fate will be decided. The Senate managed care measure is vastly inferior to Norwood/Dingell. Please note, however, that while the passage of H.R. 2723 represents a major breakthrough, there was troubling news emerging from the House vote as well. Here's the breakdown.
Why is
Norwood/Dingell
So Good?
  1. Access To "Off Formulary Medications" -- H.R. 2723 requires all health plans to allow doctors and consumers to access psychotropic medications not listed on the HMO drug formulary when medically necessary.
  2. External Review -- Norwood/Dingell permits consumers to insist that an independent panel of medical experts review decisions denying benefit claims. Health plans could be penalized up to $1,000 a day for failure to comply with the reviewers' decision
  3. Right To Sue -- The Patients Bill of Rights grants consumers the right to sue HMOs in state courts when the delay or denial of care results in serious harm. Perhaps just as important, efforts by Rep. Tom Coburn (R-OK.), Rep. John Shadegg (R-AZ.) and Rep. Amo Houghton (R-NY) to explicitly prohibit children and adults with mental disorders from going to court to seek damages against the managed care industry were defeated by wide margins.
  4. Access to Specialists - Under Norwood/Dingell, health plans must provide consumers prompt access to medical specialists who need care.
  5. Emergency Room Care -- The Patients Bill Of Rights guarantees access to emergency psychiatric services for consumers in crisis.
What's The
Bad News?
Under the auspices of improved access to health coverage for 44 million uninsured Americans, the House approved a new initiative - called Association Health Plans (AHPs) -- that permits small and medium-sized companies to form cooperatives for the purpose of purchasing health insurance coverage for their workers. But employers participating in these new associations would be exempt from ALL state mandated benefit laws - including ALL 27 mental health parity laws now on the books.

NMHA will keep you informed about the progress of the conference committee. The House and Senate won't finish ironing out the differences between their respective bills until next year. President Clinton has vowed to veto any patient protection legislation that contains the AHP provisions, or other objectionable access language.

Biggest Mental
Health Block
Grant Increase
In 20 Years
On the same day that Norwood/Dingell passed the House, Sen. Paul Wellstone (D-MINN.) successfully added $50 million to the Mental Health Block Grant, bringing total appropriation for that program to $353 million - the highest funding total since it was first proposed by President Reagan in 1981. The block grant finances community-based services for adults with severe and persistent mental illnesses and children with serious mental and emotional disturbances in all 50 states.

Earlier this year, the Clinton Administration (at the behest of Mrs. Tipper Gore) proposed a $70 million increase for the Mental Health Block Grant. Because of tight budget constraints, the Senate Appropriations Committee provided only a $21 million increase for the program. Therefore, at $304 million, the Senate's proposal was about $50 million short of the president's objective.

Against strong opposition, Sen. Wellstone insisted that the Senate fully finance the president's request. Sen. Harry Reid (D-NV.) hurried to the floor to help to his colleague and lead a discussion about the relationship between untreated clinical depression and suicide. Ultimately, after a short debate, the Senate agreed to the Wellstone amendment. If the House concurs with the Senate in the final budget deliberations, the proposal will help states extend community-based services to the people who need it most.