Blogger's Note: Here's some background on the present Behavioral Health Crisis, including a history of the zigs and zags of state policy (keep scrolling).
The latest acrimonious round in the
sad demise of behavioral health services in New Mexico was fought out last week
before the legislature’s Health and Human Services (HHS) Committee, and then,
in the courts. The topic was the
Human Services Department’s determination that there were “credible allegations
of fraud” against 15 non-profits providing mental health services throughout
New Mexico. The determination, made by HSD Secretary Sidonie Squier and her
staff, triggered an investigation by the Attorney General and will mean that
Medicaid funding will be cut off for those agencies within 30 days while the AG
investigates, although three agencies have gotten a reprieve from the
department. The 15 agencies in question serve 30,000 of the most complex,
costly and fragile patients with mental illness and drug abuse. Whether they
will be cut off from services—as the July 4th fireworks between the
parties sputters along—is one of the many disputes.
Secretary Squier says she will
bring in five Arizona organizations to manage the private non-profit providers
at a potential cost of $17.8 million, replacing the management and the CEOs but
not laying off the employees. “They’re saying that people will go without services but that
is not true. It’s made up by
somebody,” she told the committee, in one of many testy exchanges with the
committee, which oversees the Human Services Department. HHS Committee members asked about the Secretary’s legal
authority to take over a private business, especially those which also serve
private patients. Diana McWilliams, director of the
Behavioral Health Service Division, said that each provider—although paid by
the department’s statewide behavioral health organization (Optum Health, a
subsidiary of United Healthcare), had a separate contract with Medicaid.
The Medicaid behavioral health
contracts have been problematic since 1997 when the Gary Johnson administration
decided to deliver both medical and behavioral health services to Medicaid
consumers through private managed care organizations (see accompanying
chronology). The current contractor, Optum Health, whose contract with the
state runs through the end of the year, has had its share of problems. In 2009 it was sanctioned $1 million by
a special master, Alicia Smith, who was brought in to sort out the wreckage
stemming from an inadequate IT system used by the company. They were sanctioned
again in 2010. When Optum took over the contract from Value Options, the
providers (the same ones that Squires told the committee had committed
“widespread and egregious fraud”) were simply not being reimbursed for expenses
or paid for the invoices they submitted.
At the time many contacted their legislators and some went out of
business before the fire was put out.
Part of the short-term fire suppression was that Optum was to pay the
providers their invoices in full, with reconciliation of any under and overpayment
to come later.
According to an audit by the
Massachusetts-based Public Consulting Group, the 15 providers were overpaid by $36
million during a four-year period from 2009-2012. How much of that was from
accidental billing errors, mismanagement or actual fraud is unknown since the
audit, which was handed over to the Attorney General, has not been made public.
An executive summary of the document was handed out to committee members last
week, and it sparked lots of questions, particularly since it is the basis on
which all of the providers—in identical letters received at the end of June—are
accused of fraud and threatened with defunding.
The $3 million audit itself and an earlier audit done by a
“recovery” contractor for the department in January, were spurred by a new
process used by Optum to identify unusual billings and see a broader picture of
what Squires called “corruption” over a three year period. Once these records
were turned over to HSD, the department began to act according to regulations
set down by CMMS—the Center for Medicaid and Medicare Services. Legislators
asked why Optum—and the Department-- didn’t use progressive, corrective
sanctions on providers during the three year period rather than what some
called the “death penalty.” But
they didn’t get the answer they wanted.
“Optum didn’t wait for
anything. All along they were
looking into things but they had a new process which allowed them to see a
broader picture,” said Squier.
“You have to keep up with the corruption and finally they got out ahead
of it.”
But legislators like Senate
President Pro Tem Mary Kay Papen of Las Cruces, Rep. Ed Sandoval and Sen. Jerry
Ortiz y Pino, both of Albuquerque, who have seen the behavioral health care
crisis unfold over the past decade, wonder whether Optum bears a large share of
responsibility for the current crisis.
“We have local health providers
that are suddenly being branded as criminals and the company that came in and
created a chaotic mess is skating on this,” a distraught Ortiz y Pino said just
before he was taken to a local emergency room at the mid-point of the three-
hour hearing last week.
Ortiz y Pino and Squires had engaged in an angry exchange in
which Ortiz y Pino said, “ “You are destroying the behavioral health system in
this state,” and Squires fired back, “ No, it’s the providers who have committed
widespread and egregious fraud that have destroyed the system, not me.”
Ortiz y Pino has recovered from the
stress caused by the confrontational July 3rd meeting which ended with the
Secretary storming out, trailing staff in her wake. But the system may not.
Over the past eighteen years, the
system has been organized and re-organized going from a fee-for-service system
where local providers contracted directly with the state to a managed care
arrangement. Scores of different MCOs,
subcontractors, regional behavioral health organizations and 1500 providers
have been involved. Behavioral health services have been “carved out” of the
Salud contracts. Waivers have been
granted and rescinded. An innovative behavioral health collaborative has been
organized to “braid” funding from multiple sources. Once the hope of consumers, the collaborative has been disappointing,
and the department is now contemplating disbanding it. Medicaid expansion to thousands of
adults who will need behavioral health services will start in January under
Centennial Care, the department’s latest reorganization of the overall Medicaid
program. Behavioral health will once more be carved in, but the details are
sketchy.
Meanwhile, New Mexico continues to
rank 51st in the nation (including the District of Columbia), with
the least amount of money spent on behavioral health, a pervasive problem that
many say is dragging us down on other national scorecards that rank us at the
bottom when it comes to suicide, prescription drug abuse and gun violence.
As anyone who has tried to get a
troubled relative into a treatment program will tell you—it’s almost
impossible. The number of
providers has declined dramatically over the years each time the system zigs
and zags. There are very few child psychiatrists in New Mexico, almost none in
the rural areas. And overburdened psychologists and social workers are
demoralized.
The ball is now in the court of the
Attorney General, who was also present at last week’s legislative meeting. Gary King says he is not in full
agreement with HSD’s handling of the situation and wants to meet with the
department quickly to work out a better process to deal with the 15 providers. For people with mental illness and addiction problems, time
is of the essence.
The Zigzag History of New
Mexico’s Behavioral Health System
1997: Medicaid Managed Care
Governor Garry Johnson puts the Medicaid program into a new model: managed
care, later called Salud. Private
HMOs bid on a contract with the state and receive a per member rate which is
used to pay doctors, hospitals and treatment programs which care for both
physically and mentally ill Medicaid patients. Behavioral services are part of the package paid for by the
HMOs, which subcontract with specialized Behavioral Health MCOs to provide care
for the costly and often chronically ill clients. These MCOs then work with regional organizations of mental
health providers in different parts of the state. Finally, therapists, treatment facilities and non-profit
organizations like Hogares, La Familia or Presbyterian Medical Services see the
patients, providing medication, counseling or more intensive treatment. They
are paid by the behavioral health MCOs, but reimbursements are meager after
each company takes its share for administration and profit.
1998-2000: A litany of
complaints pour in to legislators, judges and the New Mexico Congressional
delegation from the advocates for the mentally ill and health providers.
Desperate patients are not getting treatment they say, because little money is
flowing through the hierarchy of insurers to those on the front line. A number of residential treatment
programs close down, and judges become concerned when the only place they can
send mentally ill young offenders is jail.
2000: Medicaid Waiver Denied: Congresswoman Heather Wilson, Sen. Jeff
Bingaman, district court judges, the Legislative Finance Committee and the NM
Health and Human Services Committee hold hearings and town halls on the situation,
ultimately asking HCFA, the Health Care Financing Administration, to withhold
federal approval for the managed care waiver, which allows the state to receive
federal funds. Responding to the
concerns, and an LFC audit, the federal government takes the rare step of
withdrawing approval of the entire waiver until the state restores the
behavioral health portion of Medicaid services to a fee- for-service system.
2001: Medicaid Waiver Restored—with Conditions. The incoming George W. Bush administration
restores the Medicaid waiver on the condition that profits for MCOs be limited
to 18% and that intensive monitoring forestall patient complaints. Unhappy, the legislature passes a bill
to “carve out” the services for mentally ill patients and restore them to a
fee-for service model, but Gov. Johnson vetoes the bill.
2004: The Behavioral Health Collaborative is created to make
services more responsive to clients, coordinate Medicaid and other federal payments
made to various agencies, and purchase services jointly. Services are carved
out of the main Medicaid program and a statewide MCO, initially Value Options, then
Optum Health, is charged with delivering them through traditional treatment
programs and core-service agencies.
The reorganization attracts national attention and initial acclaim, but
within a few years local consumer collaboratives pull out and professional
psychological associations are complaining of declining reimbursements and
other problems. More facilities
close down.
2009: Optum Health takes over for Value Options, which had a
contract with the state to deliver services to Medicaid patients. Immediately, providers experience
billing and reimbursement problems as a result of the new contractor’s failure
to develop an adequate IT system.
Claims are rejected, resubmitted and rejected again and again until the
legislature holds hearings and the department finally acts, appointing a
special master to oversee implementation of a more adequate system. One of the key problems is over and
under payments. Optum is fined $1
million in 2009 and further sanctioned in 2010.
2013: New Mexico selects four MCOs to provide Medicaid services to
an enlarged group of Medicaid recipients under a newly modernized system called
Centennial Care, due to start in
January 2014. They are Blue Cross/Blue Shield,
Presbyterian Health Care, Molina and United Healthcare (whose subsidiary is
Optum). Behavioral health services
are to be integrated with medical care. They are once again “carved in.” To
prevent administrative waste, the contract does not permit the contractors to
subcontract with behavioral health MCOs. Preparations begin for the new system.
June 2013: Department Claims
“Corruption” and “Widespread, Egregious Fraud.” Based on the results of an
outside audit, whose results were not made public, HSD determines that there is
“credible evidence of Medicaid fraud “on the parts of 15 behavioral health
providers. Secretary Sidonie
Squier turns the investigation over to the AG and says Medicaid reimbursements
for services to some 30,000 behavioral health patients will be temporarily
withheld and Arizona companies brought in to manage the companies.
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