Mental health is a fundamental component of overall health. Mental illness affects people of all ages and incomes and can be as debilitating as any other major medical illness. About one in five adults experiences a mental disorder in any given year. Prior to the enactment of the Affordable Care Act (ACA), many people with mental illness who had health insurance did not receive treatment because insurers typically placed more restrictions on coverage for mental health and substance abuse services than for other health services (e.g., higher deductibles and copayments and lower treatment limits).
Currently, health plans provided through the state health insurance exchanges are required to cover services for mental health and substance abuse and must provide such benefits at parity with medical and surgical benefits (i.e., they cannot impose financial requirements or treatment limitations that are more restrictive than those required for other covered health conditions). The ACA also extended mental health parity to populations newly covered by Medicaid in states that chose to expand the program. Previously, only Medicaid-managed care plans were subject to parity requirements.
The ACA prohibits insurers from denying or taking away health coverage on the basis of mental illnesses. It also ended lifetime and annual limits on the dollar value of benefits, which helps reduce out-of-pocket expenses for individuals with long-term service and medication needs.
People who are not eligible for Medicaid and cannot afford to buy health coverage on their own may be eligible for ACA-related premium- and cost-sharing subsidies that help reduce their costs. This is a significant change, given that cost is a factor often cited by people who recognize that they need mental health treatment but do not get it.
Other ACA provisions promote integrated service delivery for the mentally ill. People with serious mental illnesses die an average 10-25 years earlier than the general population, primarily due to co-occurring medical conditions and poor access to quality medical care.
Many of the ACA’s parity-related provisions augment the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA). The MHPAEA requires group health plans for businesses with 51 or more employees to cover mental illnesses and substance abuse at the same level as they do physical ailments. However, these provisions only apply to plans that choose to offer mental health and substance abuse coverage. The law does not require plans to cover all mental and substance use disorders, but they must provide equivalent coverage for the diagnoses they have selected. Further, the MHPAEA does not supersede any state law that offers stronger consumer protections, benefits, rights, or remedies.
The Federal Employees Health Benefits Program, the world’s largest employer-sponsored health insurance program, requires parity between mental health benefits and benefits for other conditions, and 49 states and the District of Columbia have some form of parity law.
Although effective mental health treatments are available, they are not always utilized. The Institute of Medicine has noted several challenges to providing care for mental health and substance abuse, including stigma, patients’ resistance to treatment, and the structural and functional separation of mental health care delivery from other components of the health care system. In addition, resources—including trained geriatric professionals—for community-based mental health services are extremely limited. (See also this chapter’s section on Medicare Mental Health Services).
Another challenge is that diagnostic criteria and treatments have typically been developed and validated on young and middle-aged adults, and thus may not necessarily apply to older adults.
Further, long-standing efforts to deinstitutionalize mentally ill patients have not led to corresponding and necessary changes in community-based mental health care delivery. In combination with substantial reductions in mental health funding, this shift has made it difficult for many patients to obtain the mental health services they need. These difficulties are made worse by the current shortage of geriatric mental health and substance use professionals.
A 2012 report by the Institute of Medicine, The Mental Health and Substance Use Workforce for Older Adults: In Whose Hands? found that the number of providers entering, working in, and remaining in the fields of primary care, geriatrics, mental health, substance use, and geriatric mental health and substance use is very small.
MENTAL HEALTH: Policy
Access to services
The Institute of Medicine’s recommendations on improving the quality of the overall health care system should be applied to mental health and substance abuse settings but tailored to reflect the distinct characteristics of such care. In particular, evidence on effective treatments and services specific to diverse older populations should be synthesized and disseminated, and the competency, capacity, and diversity of the workforce must be strengthened.
States should ensure adequate funding for mental health and substance abuse services and develop comprehensive and coordinated delivery systems for such services.
Efforts to reduce prescription drug abuse must ensure appropriate access for patients with legitimate medical needs.
Policies are needed for those in managed care plans who have mental health or substance abuse disorders to ensure their access to necessary services, including emergency services and mental health specialist care.
States also should ensure that mental health and substance abuse services (both privately and publicly funded) meet high standards for quality, monitor the public’s access to and satisfaction with services, protect clients’ due-process rights, and involve consumers, their family members, advocates, mental health coalitions, and professionals in planning, implementing, and evaluating services.
States should also implement initiatives such as education, training, and respite care that support family and other caregivers.
Ensuring diagnosis and treatment are appropriate to older adults
Ensuring adequate and affordable coverage
Federal and state governments should support proposals to require adequate and affordable mental health and substance abuse coverage. For example, the use of Advanced Practice Registered Nurses to provide some services to Medicaid patients may increase access to mental health services and also prove cost-effective.
Mental health services should have parity with (i.e., be covered at levels equivalent to) other health services.
Federal and state governments should rigorously monitor and enforce parity requirements in plans offered through the state health insurance exchanges and in Medicaid managed care program, benchmark, and benchmark-equivalent plans.
The Department of Labor should rigorously monitor and enforce the Mental Health Parity and Addiction Equity Act (MHPAEA), particularly with respect to ensuring that businesses accurately estimate implementation costs. Congress should ensure that restrictions on mental health and substance abuse services in health plans not addressed by the MHPAEA do not exceed those for physical health services, including day or visit limits and cost-sharing levels.
States should ensure parity beyond the provisions of the act for all plans providing mental health and substance abuse services.
Data collection and reporting
Federally funded programs should collect and report data on the use and cost of mental health and substance abuse services for older people, including people enrolled in managed care plans.
Showing Cause for Coverage denials
Insurers should be required to show cause before denying payment for specific medications prescribed by a physician to manage a mental health condition in cases where the physician deems the insurer’s recommended substitute to be less effective or medically inappropriate.
Funding for community-based providers
The federal government should increase funding for community-based mental health and substance abuse services through the mental health block grant. A larger portion of funds should be targeted toward nontraditional providers of services for the older population, such as adult day-service centers and other community-based long-term services and supports providers.
Community mental health centers should be educated about the need to conduct culturally appropriate outreach to older adults, who typically will not self-refer, by providing services at other sites and establishing affiliations with area agencies on aging.
Protections are needed for those in managed care plans who have mental health or substance abuse disorders to ensure their access to necessary services, including emergency services and mental health specialist care.
Policymakers should evaluate managed behavioral health care to assess whether enrollees have access to appropriate, high-quality, and timely care.
Additional funding should be made available for research on the complex epidemiology of mental health and substance abuse problems of older Americans, as well as on preventing and reducing mental disorders and alcohol or substance abuse among older adults. Research should evaluate the impact of specific therapies—especially prescription drugs—on outcomes for older patients, including individuals in nursing homes and other residential settings, those rurally isolated, and older adults with serious mental illnesses.
The Centers for Medicare & Medicaid Services and the Substance Abuse and Mental Health Services Administration, through research and demonstration projects, should encourage innovative delivery models for mental health and substance abuse services (e.g., integrated care), in order to bring services into homes, senior centers, residential care facilities (including board and care homes), and federally assisted housing sites.
Policymakers should support ongoing research to evaluate the impact of specific mental health and substance abuse services on patient outcomes and on the use of other health services and behavioral health systems, including various types of carve-outs. Evaluations should examine access (e.g., timely service and an array of appropriate services), enrollee satisfaction, outcomes of care (e.g., the ability to live independently), and systems integration (e.g., tracking in other systems, such as criminal justice and education) to determine if mental health programs are working.
Mental health coverage in Medicaid
Medicaid law and regulations should provide for payment at adequate rates for mental health and substance abuse services. Individuals should be able to choose the same delivery system for mental health and substance abuse services as they do for physical health services. For example, individuals who select a fee-for-service plan should have access to mental health and substance abuse services, as well as physical health services, on a fee-for-service basis.
States should set and enforce strong licensing standards for community mental health centers.
States should improve mental health and substance abuse services in criminal justice settings through increased funding and better collaboration with the larger mental health system. For example, states should establish jail-diversion programs (possibly through the use of specially trained police or on-site crisis teams) to minimize the number of seriously mentally ill individuals who are inappropriately incarcerated. Inmates with a serious mental illness should receive psychiatric and substance abuse services while in jail and follow-up care upon release.