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Unanticipated Caseload Growth May Cause Mental Health Funding Shortfall in New Hampshire

The New Hampshire Legislature assumed a 1-percent increase in caseloads when it allocated funding for mental health services during the current fiscal year; however, caseloads have increased 13 percent in the first quarter. As a result, state officials anticipate a $9 million shortfall for current-year mental health services. To resolve the expected shortfall, a legislative rules committee approved a request of the New Hampshire Department of Health and Human Services (DHHS) to cap “functional support services,” such as grocery shopping, doctor visits, and independent assisted living services for adults at no more than 2½ hours per day. As another cost-saving measure, DHHS is cutting Medicaid reimbursements for mental health services case management, estimated to yield $4.5 million.

Report Finds $116 Million Spent on Substance Abuse Treatment in West Virginia

The Financial Burden of Substance Abuse in West Virginia: The Healthcare System, a report published by the West Virginia Partnership To Promote Community Well-Being and funded by the U.S. Office of Juvenile Justice and Delinquency Prevention Block Grant, details the financial burden of substance abuse on the state’s health care system. According to the report, $116 million of the state’s health care budget was spent on substance abuse treatment in 2007, and that figure is projected to increase to $201 million by 2010.

Wisconsin Poll Finds Support for Small Business M/SU Parity Law

The Milwaukee Addiction Treatment Initiative published a survey that found 65 percent of city residents supported extending mental/substance use (M/SU) parity to all workers, which they said would add only $2 to the cost of monthly health insurance premiums. The poll comes in light of the legislation proposed by Senator Dave Hansen (D) and Representative Sandy Pasch (D), the Mental Health and Substance Abuse Parity Act, which would extend M/SU parity laws to employees in companies with 50 or fewer employees (Financing News Pulse, October 13 edition).

North Carolina Budget Cuts Adversely Affect Mental Health Services

On October 13, North Carolina Governor Beverly Perdue (D) announced plans to reallocate $15 million to reduce the impact of the $1.7 billion North Carolina Division of Health and Human Services (DHHS) budget cuts. The DHHS budget had received $1.5 billion less than expected, causing a drastic cut in services (Financing News Pulse, August 10 edition). On October 14, a committee of North Carolina lawmakers convened to discuss the impact of a 25-percent budget cut for DHHS, with the largest cut—$400 million—in mental health services.

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