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F:\HSA\EDLABOR\SUB\MILLER.004 H.L.C. AMENDMENT To COMMITTEE PRINT (H.R. 3600) OFFERED BY MR. MILLER OF CALIFORNIA Page 30, strike lines 16 through 19 and insert the following: 1 (which are subject to section 1115), except- 2 (1) medical detoxification as required for the 3 management of medical conditions associated with 4 withdrawal from alcohol or drugs (which is not cov- 5 ered under such section); and 6 (2) treatment of a substance abuse disorder 7 that is necessary in order to ensure continuity of 8 care for an individual receiving hospital services 9 other than such treatment, where the individual was 10 receiving substance abuse treatment covered under 11 section 1115 prior to receiving such other hospital 12 services. Page 41, strike line 25 and insert "(c)), including case management.". Page 42, line 1, strike "nonresidential" and insert "community services for". Page 42, strike line 3 and insert "(d)), including case management.". May 10, 1994 F:\HSA\EDLABOR\SUB\MILLER.004 H.L.C. 2 Page 42, line 11, strike "NONRESIDENTIAL, and in- sert "INTENSIVE COMMUNITY SERVICES,". Page 42, line 14, strike "nonresidential" and insert "community services for". Page 42, line 17, strike "management" and insert "management, screening and assessment, crisis serv- ices,". Page 42, line 22, strike "disorder;" and insert "dis- order or, in the case of an individual 5 years of age or less than 5 years of age, is at risk for such a mental dis- order; Page 43, strike lines 8 through 19 and insert the following: 1 (2) CASE MANAGEMENT.-An eligible individual 2 who is receiving an item or service described in this 3 section that does not consist of case management is 4 eligible to receive coverage for case management in 5 addition to coverage for such item or service. Page 44, line 8, strike "nonresidential" and insert "community services for". Beginning on page 44, strike line 19 through page 45, line 2, and insert the following: May 10, 1994 F:\HSAVEDLABOR\SUB\MILLER.004 H.L.C. 3 1 (A) an inpatient of a hospital or a psy- 2 chiatric hospital; or 3 (B) a resident of a residential treatment 4 center, residential detoxification center, crisis 5 residential program, mental illness residential 6 treatment program, therapeutic family home, 7 group treatment home, community residential 8 treatment program, or recovery center for sub- 9 stance abuse. Beginning on page 45, strike line 21 through page 46, line 5 (and redesignate provisions accordingly). Beginning on page 46, strike line 15 through page 47, line 5 (and redesignate provisions accordingly). Page 47, after line 18, insert the following: 10 (E) ANNUAL AND LIFETIME LIMIT ON 11 HOSPITAL TREATMENT.-Prior to January 1, 12 2001, such treatment, when furnished to an in- 13 patient of a hospital that is not a psychiatric 14 hospital, is subject to an aggregate annual limit 15 of 90 days. Such treatment, when furnished to 16 an inpatient of a psychiatric hospital, is subject 17 to an aggregate annual limit of 45 days and an 18 aggregate lifetime limit of 190 days per individ- 19 ual. May 10, 1994 F:\HSA\EDLABOR\SUB\MILLER.004 H.L.C. 4 1 (F) ANNUAL LIMIT ON RESIDENTIAL 2 TREATMENT.-Prior to January 1, 2001, such 3 treatment, when furnished in a setting other 4 than a hospital or psychiatric hospital, is sub- 5 ject to an aggregate annual limit of 135 days. 6 The number of covered days of inpatient mental 7 illness and substance abuse treatment that are 8 available to an individual under the annual and 9 lifetime limits described in subparagraph (E) 10 shall be reduced by 1 day for each 3 covered 11 days of residential mental illness and substance 12 abuse treatment that are provided to the indi- 13 vidual. Page 47, line 19, strike "NONRESIDENTIAL TREAT- MENT.-" and insert "COMMUNITY SERVICES.-". Page 47, line 21, strike "nonresidential" and insert "community services for". Page 48, line 14, strike "nonresidential" and insert "community services for". Page 48, strike lines 16 through 22 (and redesignate provisions accordingly). Beginning on page 49, strike line 16 through page 50, line 14, and insert the following: May 10, 1994 F:/HSAVEDLABOR\SUB\MILLER.004 H.L.C. 5 1 (B) ANNUAL LIMIT.-Prior to January 1, 2 2001, such treatment is subject to an aggregate 3 annual limit of 90 days, except with respect to 4 individuals less than 22 years of age such an- 5 nual limit shall be 180 days. Page 50, line 16, strike "nonresidential" and insert "community services for". Page 50, line 22, strike "nonresidential" and insert "community services for". Page 51, strike lines 5 through 8 and insert "this subtitle.". Beginning on page 52, strike line 8 through page 54, line 23 (and redesignate provisions accordingly). Page 55, after line 12, insert the following (and re- designate provisions accordingly): 6 (f) UTILIZATION REVIEW REQUIREMENT.- 7 (1) IN GENERAL.-The mental illness and sub- 8 stance abuse services that are described in this sec- 9 tion are not covered for an individual, after each ap- 10 plicable set of visits or set of treatment days de- 11 scribed in paragraph (2) has been provided to the 12 individual, unless the health plan in which the indi- 13 vidual is enrolled determines, based on a utilization May 10, 1994 F:\HSA\EDLABOR\SUB\MILLER.004 H.L.C. 6 1 review, that such services continue to be medically 2 necessary or appropriate. 3 (2) SETS OF VISITS AND TREATMENT DAYS.- 4 (A) SETS OF VISITS.-The sets of visits re- 5 ferred to in paragraph (1) are- 6 (i) 1 initial set of 10 consecutive regu- 7 larly-scheduled outpatient psychotherapy 8 visits provided to an individual during a 9 period that does not exceed 12 months; 10 and 11 (ii) each subsequent set of 15 con- 12 secutive regularly-scheduled outpatient 13 psychotherapy visits provided to the indi- 14 vidual that immediately follows the initial 15 set of visits described in clause (i) or an- 16 other set of visits described in this clause. 17 (B) SETS OF TREATMENT DAYS.-The sets 18 of treatment days referred to in paragraph (1) 19 are- 20 (i) 1 initial set of 10 consecutive days 21 of inpatient and residential mental illness 22 and substance abuse treatment; and 23 (ii) each subsequent set of 15 con- 24 secutive days of inpatient and residential 25 mental illness and substance abuse treat- May 10, 1994 F:\HSAVEDLABOR\SUB\MILLER.004 H.L.C. 7 1 ment provided to the individual that imme- 2 diately follows the initial set of treatment 3 days described in clause (i) or another set 4 of treatment days described in this clause. 5 (3) MODIFICATION OF NUMERICAL SETS BY 6 BOARD.-The National Health Board may by regu- 7 lation modify the number of visits or days that con- 8 stitute a set referred to in paragraph (1). 9 (4) MODIFICATION OF NUMERICAL SETS BY 10 STATES.-With respect to mental illness and sub- 11 stance abuse services that are provided in a State, 12 the State may modify the number of visits or days 13 that constitute a set referred to in paragraph (1), if 14 the modification decreases such number below the 15 number specified in paragraph (2) or specified by 16 the Board under paragraph (3). Page 86, strike the items relating to intensive nonresidential mental illness and substance abuse treat- ment, outpatient mental illness and substance abuse treatment, and outpatient psychotherapy and insert the following: Intensive community services for mental illness and sub- stance abuse treatment 1115 No copayment 20 percent of applicable payment rate May 10, 1994 F:\HSAVEDLABOR\SUB\MILLER.004 H.L.C. 8 Outpatient mental illness and substance abuse treat- ment (except psycho- therapy for individuals at least 22 years of age, col- lateral services, and case management) 1115 $10 per visit 20 percent of applicable payment rate Outpatient psychotherapy for individuals at least 22 years of age and collateral services 1115 $25 per visit 50 percent of applicable until January payment rate until 1, 2001, and January 1, 2001, and $10 per visit 20 percent thereafter thereafter Page 97, after line 22, insert the following (and re- designate provisions accordingly): 1 (7) CONTINUITY OF CARE FOR MENTAL AND 2 SUBSTANCE ABUSE DISORDERS.-Ensuring con- 3 tinuity of care for individuals who require mental ill- 4 ness and substance abuse services described in sec- 5 tion 1115, but are not covered for such services be- 6 cause of annual or lifetime limits described in such 7 section, by contracting with providers who provide 8 mental illness and substance abuse services de- 9 scribed in such section, unless suitable agreements 10 with such providers cannot be reached. Page 224, beginning on line 11, strike "Each car- rier" through line 17 and insert the following: 11 (1) IN GENERAL.-Each carrier providing a 12 health plan with an integrated health network (as May 10, 1994 F:\HSAVEDLABOR\SUB\MILLER.004 H.L.C. 9 1 defined in section 1902(25)) shall enter into such 2 agreements with health care providers or have such 3 other arrangements as may be necessary to assure 4 the provision of all services covered by the com- 5 prehensive benefit package to eligible individuals en- 6 rolled with the plan through such a network. 7 (2) SPECIAL REQUIREMENTS FOR MENTAL ILL- 8 NESS AND SUBSTANCE ABUSE SERVICES.-Each car- 9 rier providing a health plan with an integrated 10 health network shall enter into such agreements with 11 health care providers or have such other arrange- 12 ments as may be necessary- 13 (A) to demonstrate specifically that the 14 carrier has the ability to provide, through such 15 network, to individuals who have severe mental 16 illness, serious emotional disturbance, or a sub- 17 stance abuse disorder, medically necessary or 18 appropriate- 19 (i) inpatient and residential mental ill- 20 ness and substance abuse treatment (de- 21 scribed in section 1115(c)) with respect to 22 a diagnosable substance abuse disorder in 23 a setting that is not a hospital or psy- 24 chiatric hospital; May 10, 1994 F:\HSAVEDLABOR\SUB\MILLER.004 H.L.C. 10 1 (ii) intensive community services for 2 mental illness and substance abuse treat- 3 ment (described in section 1115(d)); and 4 (iii) outpatient mental illness and sub- 5 stance abuse treatment consisting of case 6 management (described in section 7 1115(e)(1)(H); 8 (B) to ensure that the items and services 9 described in subparagraph (A) are provided to 10 all individuals enrolled under the plan by pro- 11 viders who have a demonstrated ability to iden- 12 tify individuals who require such treatment and 13 to deliver such treatment within a reasonable 14 distance from the residence of an individual; 15 (C) to ensure continuity of care for individ- 16 uals who require mental illness and substance 17 abuse services described in section 1115, but 18 are not covered for such services because of an- 19 nual or lifetime limits described in such section, 20 by developing appropriate plans and linkages 21 with public agencies that may provide such 22 services; and 23 (D) to ensure that the carrier has estab- 24 lished, or is establishing, linkages with existing 25 mental illness and substance abuse service de- May 10, 1994 F:\HSAVEDLABOR\SUB\MILLER.004 H.L.C. 11 1 livery programs in the plan service area for 2 services that are required under section 1115(g) 3 to be provided through an organized system of 4 care. 5 (3) SPECIAL REQUIREMENT TO CONTRACT WITH 6 STATE-DESIGNATED PROVIDERS.-In the case of a 7 carrier with respect to which a State has made a 8 finding that the carrier has not satisfied the require- 9 ment in subparagraph (A) or (B) of paragraph (2), 10 the carrier, if directed by the State, shall contract 11 with providers designated by the State as having 12 demonstrated experience in providing the services 13 described in paragraph (2)(A). May 10, 1994 F:\HSAVEDLABOR\SUB\MILLER.002 H.L.C. AMENDMENT To COMMITTEE PRINT (H.R. 3600) OFFERED By MR. MILLER OF CALIFORNIA Beginning on page 55, strike "The" on line 16 through page 56, line 10, and insert the following (and redesignate provisions accordingly): 1 A health plan sponsor shall ensure that mental ill- 2 ness and substance abuse services described in this 3 section are furnished through an organized system 4 of care, as described in paragraph (2), if- 5 (A) the services are provided to an individ- 6 ual less than 22 years of age; 7 (B) the individual has a serious emotional 8 disturbance or a substance abuse disorder; and 9 (C) the individual is, or is at imminent risk 10 of being, subject to the authority of, or in need 11 of the services of- 12 (i) a public agency that serves the 13 needs of children, such as an agency in- 14 volved with child welfare or special edu- 15 cation; 16 (ii) the juvenile justice system; or 17 (iii) the criminal justice system. 18 (2) REQUIREMENTS FOR SYSTEM OF CARE.-In 19 this subsection, an "organized system of care" is a May 10, 1994 F:\HSAVEDLABOR\SUB\MILLER.002 H.L.C. 2 1 community-based service delivery network, which shall 2 may consist of public and private providers, that A 3 meets the following requirements: Page 56, beginning on line 11, after "participation" insert "and coordination". Page 56, beginning on line 13, strike "area (includ- ing" and insert "area, including". Page 56, line 15, after "justice" insert "criminal justice". Page 56, line 17, strike "treatment)." and insert "treatment.". Page 56, line 25, strike "through" and insert "by". Page 56, line 25, strike "or" and insert "and". Page 57, line 1, strike "teams that" and insert "teams, which". Page 57, line 6, strike "children" and insert "indi- viduals". Page 57, line 7, after "age" insert "who have a seri- ous emotional disturbance or a substance abuse dis- order". May 10, 1994 EDLABOR SUB\ MILLER.003 AMENDMENT TO COMMITTEE PRINT (H.R. 3600) OFFERED BY MR. MILLER OF CALIFORNIA Page 564, strike lines 1 through 24 (and conform line 8 on page 560 and the table of contents accordingly). Page 565, strike line 1 and all that follows through page 567, line 23, and insert the following part (and con- form the table of contents accordingly): 1 PART 3 - -ASSISTANCE FOR STATE MANAGED MEN- 2 TAL HEALTH AND SUBSTANCE ABUSE PRO- 3 GRAMS 4 SEC. 3531. AVAILABILITY OF ASSISTANCE. 5 (a) IN GENERAL.-The Secretary may make grants 6 to States for the development and operation of comprehen- 7 sive managed mental health and substance abuse pro- 8 grams that are integrated with the delivery of items and 9 services covered under the comprehensive benefits pack- 10 age. Such programs shall- 11 (1) promote the development of integrated de- 12 livery systems for the management of the mental 13 health and substance abuse services provided under 14 the comprehensive benefit package; 15 (2) give priority initially to providing services to 16 low-income adults with serious mental illness or sub- 17 stance abuse disorders and children with serious May 9, 1994 (3:29 p.m.) F:\HSAVEDLABOR\SUB\MILLER.003 2 1 emotional disturbance or substance abuse disorders 2 and provide for the phase-in of such services for all 3 eligible persons within 5 years; 4 (3) ensure that individuals participating in the 5 program have access to all medically necessary men- 6 tal health and substance abuse services; 7 (4) promote the linkage of mental health and 8 substance abuse services with primary and preven- 9 tive health care services; and 10 (5) meet such other requirements as the Sec- 11 retary may impose. 12 (b) EXCEPTION.-Nothing in this part shall be con- 13 strued as preventing States that have separate administra- 14 tive entities for mental health and for substance abuse 15 services from establishing separate comprehensive man- 16 aged care programs for such services and receiving assist- 17 ance under this part for either or both programs. 18 SEC. 3532. REQUIREMENTS FOR A PLAN. 19 In order to receive a grant under this part, a State 20 must have a plan for a comprehensive managed mental 21 health and substance abuse program, which is approved 22 by the Secretary. Such plan shall- 23 (1) describe the management, access, and refer- 24 ral structure that the State will use to promote and 25 achieve integration of mental health and substance May 9, 1994 (3:29 p.m.) F:\HSAVEDLABOR\SUB\MILLER.003 3 1 abuse services with the delivery of items and services 2 covered under the comprehensive benefits package 3 for eligible individuals in the State; 4 (2) describe how the State will ensure that pro- 5 viders of specialized services will meet appropriate 6 standards and provide assurances that the State has 7 complied with section 1201(a)(7) as it affects mental 8 health and substance abuse services; 9 (3) describe payment, utilization review, and 10 other mechanisms that the State will use to encour- 11 age appropriate service delivery and management of 12 costs; 13 (4) describe uniform patient placement criteria 14 that the State will use to ensure placement in appro- 15 priate substance abuse treatment; 16 (5) describe the process the State will use to 17 ensure that individuals will continue to have access 18 to treatment through referrals from nonhealth public 19 entities, such as the juvenile or criminal justice sys- 20 tems, or social service systems; 21 (6) specify the methods the State will use to en- 22 sure that individuals receiving services under the 23 program have access to all medically necessary and 24 appropriate mental health and substance abuse serv- 25 ices; May 9, 1994 (3:29 p.m.) :\HSA\EDLABOR\SUB\MILLER.003 4 1 (7) define terms that will be used by the State 2 in determining the eligibility of individuals for serv- 3 ices under the program; 4 (8) describe how health plans will use services 5 under the comprehensive managed mental health 6 and substance abuse programs established under 7 this part; 8 (9) describe the sources of funding, including 9 the medicaid program and the block grants author- 10 ized by title XIX of the Public Health Service Act, 11 that will be used by the State, other than the grant 12 received under this part, to operate the program, 13 and provide the status of any request for a medicaid 14 waiver relating to the delivery of mental health and 15 substance abuse services submitted by the State to 16 the Secretary; 17 (10) describe how the State provided for broad- 18 based public input in the development of the plan, 19 and the mechanism that will be used for ongoing 20 public comment on and review of amendments to the 21 plan; and 22 (11) describe grievance procedures that will be 23 available for individuals dissatisfied with their health 24 plan's participation in the comprehensive managed 25 mental health and substance abuse program, and May 9, 1994 (3:29 p.m.) F:\HSAVEDLABOR\SUB\MILLER.003 5 1 mechanisms that will be available to review the per- 2 formance of health plans and fee-for-service arrange- 3 ments to ensure against undertreatment. 4 SEC. 3533. MAINTENANCE OF EFFORT. 5 States receiving assistance under this part shall 6 maintain expenditures of non-Federal funds, including 7 State medicaid expenditures and State substance abuse 8 treatment expenditures required by title XIX of the Public 9 Health Services Act, for all covered services for covered 10 persons provided under the comprehensive managed men- 11 tal health and substance abuse program at the level of 12 such expenditures for the fiscal year preceding the first 13 fiscal year for which the State receives such a grant. Such 14 level must be adjusted annually for inflation in accordance 15 with the general health care inflation factor (as defined 16 in section 6001(a)(3)), but may be reduced in proportion 17 to reductions in the State population. 18 SEC. 3534. ADDITIONAL FEDERAL RESPONSIBILITIES. 19 The Secretary shall, upon the submission of a State's 20 plan-- 21 (1) ensure the timely consideration of any re- 22 quest for a medicaid waiver relating to the delivery 23 of mental health and substance abuse services sub- 24 mitted by the State to the Secretary, May 9, 1994 (3:29 p.m.) F:VHSAVEDLABOR\SUB\MILLER.003 6 1 (2) affirm that the State has met the respon- 2 sibilities required under section 1201(a)(7), and 3 (3) affirm that carriers providing health plans 4 in the State meet the requirements of paragraphs 5 (2) and (3) of section 1407(a). 6 SEC. 3535. AUTHORIZATION OF APPROPRIATIONS. 7 There are authorized to be appropriated for grants 8 under this part $100,000,000 for each of the fiscal years 9 1996 through 2000. May 9, 1994 (3:29 p.m.) Amendment To Committee Print (H.R. 3600) Offered By Mr. Green of Texas Page 10, line 13, before the period insert "or making payment on the individual's own behalf (or on behalf of a relative or other individual) for such services directly to a health care provider that is legally authorized to provide the services, subject to the balance billing requirements of this Act". MAY-13-1994 09:39 FROM ACTUARIAL RESEARCH TO 2024562878 P.01 Actuarial Research Corporation 6928 Little River Turnpike, Suite E Annandale, Virginia 22003 (703) 941-7400 FAX (703) 941-3951 Date: 5/13/94 Please Deliver Immediately To: Jennifer Klein From: Gardon Trapnell Re: Memo: Revised estemate 7 Miller Dental 2.20% premission 17.6 Billion over 5 years ) ( Around $ $7.3 bellions in 1994 dollars for EN Plans) We are transmitting pages (including this transmittal sheet). MAY-12-1994 15:09 FROM ACTUARIAL RESEARCH TO 12022255350 P.02 a:\dental.wq1 05/12/94 rgm MILLER DENTAL AMENDMENT NO ANNUAL LIMIT Aggregates HCFA GRT CBO Contract GRT CBO Counts Increment Premium % Type Increment Premium (Millions) (Millions) (Millions) Increase Assumes Single $65.84 $2,100 41.9 $2,758.70 $87,990 3.14% Couple 18 132.82 4,200 17.5 2,324.35 73,500 3.16% One Adult 83.56 4,095 6.9 576.56 28,256 2.04% Two Adults 151.78 5,560 25.8 3,915.92 143,448 2.73% Total / adolt 92.1 $9,575.53 $333,194 2.87% 2 adults 1.9 2 kids ANNUAL LIMIT 10% of people Aggregates HCFA GRT CBO Contract GRT CBO Counts Increment Premium % Type Increment Premium (Millions) (Millions) (Millions) Increase Single $59.85 $2,100 41.9 $2,507.91 $87,990 2.85% Couple 120.75 4,200 17.5 2,113.05 73,500 2.87% One Adult 75.96 4,095 6.9 524.15 28,256 1.86% Two Adults 137.98 5,560 25.8 3,559.93 143,448 2.48% Total 92.1 $8,705.03 $333,194 2.61% Cost Estimates Relate to 1994 1994 cost issity emented Adult 66.41 Increase increase Child 9.03 TOTAL P.02 Station High Cost Sharing DENTAL SERVICES Clief Dental Officer- PHS Large Employers Marge High CIB Plan (ADULT) pop 158,732,000 Line Per % Unit Per % Unit Per * Preq Part Cost Capits Cor C8M Freq Cost Capital Car CSM Freq Part Cost Capita Cov CSW Copay Ded Colo Bane 12022255350 P.02 A. Presention and Diagnosis $42.08 30.00 $44.40 $0.00 660.41 $68.41 $88.41 TOTAL P.02 Assessments 626.27 $0.00 $21.68 $0.00 $41.45 $41.45 WE Clinical oral examinations 1021 70% $20.00 $14.32 0% 00.00 0.528 $16.27 $6.64 OK $0.00 1.812 70% $20.00 $22.00 100% $82.00 $0 1.00 1.00 $22.00 Rediographs 0.258 TO% $17.01 $11.94 0% 40.00 0.580 $20.41 $12.04 0% $0.00 1.512 70% 817.81 $18.84 100% $16.04 $0 1.00 1 00 $18.84 2. Dental securits 10 1.00 1.00 $0.00 3. Fluoride $2.39 $0.00 $0.00 $0.00 $3.77 $3.77 $3.77 Professionally applied 0.182 70% $17.80 $2.38 0% $000 6 $0.00 0.302 70% $17.91 $3.77 100% $3.77 00 1.00 1.00 $3.77 Supplements 0% $0.00 0% $0.00 0% $0.00 00 1.00 1.00 $0.00 4. Clarrial prophylars 0.481 70% $14.02 $13.43 0% 10.00 0.587 $38.76 $22.75 0% $0.00 0.000 70% $44.52 $21.20 100% 821.20 $0 1.00 1.00 $21.20 a TREATMENT $90.62 $7.07 $245.04 $1.28 $208.27 1501 $2.45 TO 1. Energencias $3.62 $0.02 $0.83 $0.83 $3.92 $3.92 $1.60 Emergency EXPIRE 0150 100% $24.71 $4.01 100% $4.01 100% $0.00 0.105 100% $26.71 1280 100% $2.00 $0 0.51 0.00 $1.18 Sedable tilling 0.020 100% $95.62 $0.71 100% $0.71 100% $0.00 0.014 100% $30.82 40.50 100% $0.50 $0 0.51 0.80 1020 Pallative 0.015 100% $38.96 $0.59 100% $0.50 0.018 $35.50 $063 100% $0.63 0.011 100% 638.98 10.41 100% $0.41 $0 0.51 0.80 $0.17 Traumalic recurds 0.005 100% $61.22 $0.31 100% $0.31 100% $0.00 0.003 100% $61.22 4021 100% $0.21 $0 0.81 0.80 $010 2 Routine Filings 1256 70% $41.20 $45.01 0% 10.00 0911 $58.14 $53.88 0% $0.00 0.937 70% $57.00 $53.17 0% $0.00 10 034 0.80 $0.00 a Proalhodostics $1.50 $1.58 $152.52 $0.63 $107.15 $1.09 $0.83 I Dentures $ $0.00 0.031 $647.53 $20 20 6 $0.00 0.031 70% $847.53 $1410 0% $0.00 to 1.00 0.80 $0.00 ACTUARIAL RESEARCH Crowns 0% $0.00 0.183 $474.72 687.67 6 $0.00 0.184 10% $474.72 $61.13 0% $0.00 80 1.00 0.80 $0.00 Bridge walk 0% $0.00 0.075 $541.11 $40.39 O% $0.00 0.074 70% $541.11 $20 19 0% $0.00 10 100 0.80 $0.00 Integral 0% $0.00 0.004 $438.11 $1.58 0% $0.00 0.004 70% $438.11 $1.10 0% $0.00 to 1.00 080 $0.00 Feesthebe for genetal defects 0.002 70% $1 393.51 $1.56 100% $1.56 0.003 $193.25 $0.83 100% $0.63 0.001 70% $1,363.51 $1.09 500% $1.00 10 0.94 0.80 $0.85 General anoxthesia 0% $0.00 0.018 $125.70 $2.05 (6) $0.00 0.018 70% $12570 $1.43 2 $0.00 R 1.00 080 $0.00 4. Periodentics $24.09 $0.00 $16.00 $0.00 $27.94 $0.00 $0.00 Pericdortic surgery 0% $0.00 0 044 $280.97 $11.49 0% $0.00 0.044 70% $260.97 $0.02 0% $0.00 $0 1.00 0.00 $0.00 Periodontel maintenance 0.517 70% $87.89 82459 0% $0.00 0017 $70.96 $1.23 0% $0.00 0361 FO% $67.09 $17.45 0% $0.00 DI 0.51 0.00 $0.00 Other perfodantal 0% $0.00 0011 $07.44 $1.95 % $0.00 0.040 TO% $97.44 $2.78 0% $0.00 $0 1.00 0.00 $0.00 5 Eedodontic services Ireal canall 0.388 70% $51.80 $13.65 0% $0.00 0 061 $377.97 123.13 0% $0.00 0.061 70% $377.87 $16.14 0% $0.00 $0 0.91 0.00 $0.00 FROM c. ORTHODOHTICS $0.00 $0.00 $27.50 $0.00 $27.58 $0.00 $0.00 Spece maintenance (ages 8.40 0% $0.00 0% $0.00 0.000 0% $0.00 $0.00 0% $0.00 $0 1.00 0.60 $0.00 Severe Nateoclusion lages 6 141 0% $0.00 0% $0.00 0.000 0% $0.00 $0.00 O% 50.00 a 1.00 0.00 $0.00 Other orthodonium 0% $0.00 $27.58 0% $0 00 $27.58 O% $0.00 a 1.00 040 40.00 D. CIRCUL SURGERY BY DENTISTS $6.19 $0.86 $12.60 $7.06 $0.93 $0.98 $0.07 MAY-12-1994 15:12 1. Extractions 0.100 100% $02.31 $023 0% $0.00 0.121 $46.25 $5.59 0% 20 00 0.013 100% $5231 $0.70 O% 1000 to 0.38 0.00 $0.00 2. Surgice* extractions 0.010 100% $85.77 $0.98 100% $0.80 0.000 $141.77 $7.06 100% $7.04 0.001 100% $95.72 $0.13 100% $0.56 30 0.85 0.80 $0.07 TOTAL $136.90 $1.53 $331.50 $6.32 $903.10 $72.38 $68.93 Section A Scaler: 1,576 Section 8 Scaler: 0.695 Section D Scaler: 0.134 MAY-12-1994 13:14 FROM ACTUARIAL RESEARCH TO 12022255350 P.02 For Official Use Only Estimated Cost of Oral Health Benefits Package .. Total U.S Population Description of Proposed Oral Health Benefits for Children, Adolescents, & Adults (Under the age of 65) freek Participation ESTIMATED PROJECTED rate TARGET the an SERVICE UTILIZATION TOTAL PER CAPITA SERVICE POPULATION FREQ/YR MODIFIER RATE COST/UNIT ANNUAL COST COST($)/YR (1995) ORAL HEALTH ASSESSMENT ORAL EXAMINATION (INI./PER.) 220,875,947 1 100% 70% $18 $2,841,789,939 $12.87 DENTAL RADIOGRAPHS (2 BW) 214,277,530 1 100% 70% $16 $2,399,908,338 $11.20 DENTAL SEALANTS DENTAL SEALANTS (6-17 Y/O) 37,954,200 0.17 8.00 50% $19 $490,368,264 $12.92 PROFESSIONAL APPLIED TOPICAL FLUORIDE CHILD TF/HIGH RISK (2-18 Y/O) 64,143,947 2 (45% 85% $16 $785,121,916 $12.24 CHILD TF/NON-FL COMM (2-18 Y/O 64,143,947 2 (55% 25% $16 $282,233,368 $4.40 ADULT TF/HIGH RISK (19-64 Y/O) 150,133,583 2 10% 70% $16 $336,299,225 $2.24 ORAL PROPHYLAXIS ORAL PROPHY (CHILD 2-14 Y/O) 47,678,263 1 60% 70% $29 $580,721,245 $12.18 ORAL PROPHY (ADULT 15-64 Y/O) 164,765,583 1 45% 70% $40 $2,076,046,343 $12.60 FLUORIDE SUPPLEMENTS DENTAL EMERGENCY EMERGENCY EXAM 226,374,000 1 15% 100% $24 $814,946,400 $3.60 SEDATIVE FILLING 220,875,947 1 2% 100% $32 $141,360,606 $0.64 EMERGENCY TX OF PAIN 226,374,000 1 1.5% 100% $35. $118,846,350 $0.53 EXTRACTION (SINGLE) 220,875,947 1 10% 100% $47 $1,038,116,953 $4.70 EXTRACTION (SURGICAL) 219,043,263 1 1% 100% $86 $188,377,206 $0.86 TRAUMATIC WOUND TX 226,374,000 1 0.5% 100% $55 $62,252,850 $0.28 ROUTINE RESTORATIVE SERVICES PRIMARY REST. (CHILD 3-10 Y/O) 29,446,000 1 1.1 70% $45 $1,020,303,900 $34.65 PERM. REST. (CHILD 6-18 Y/O) 48,121,000 1 0.4 70% $46 $625,188,032 $12.99 CORONAL REST. (ADULT 19-64 Y/O) 150,133,583 1 1.3 70% $46 $6,339,240,400 $42.22 ROOT REST. (ADULT 19-64 Y/O) 150,133,583 1 0.4 70% $46 $1,950,535,508 $12.99 PERIODIC MAINTENANCE CARE (S&RP) CHILD (15-18 Y/O) 14,632,000 1 10.0% 70% $61 $62,478,640 $4.27 ADULT (19-64 Y/O) 150,133,583 1 54.0% 70% $61 $3,461,780,152 $23.06 INTERCEPTIVE ORTHODONTICS (6-11 Y/O) SPACE MAINTENANCE (3-10 Y/O) 29,446,000 0.125 39.0% 70% $166 $166,804,229 $5.66 CHILD (6-11 Y/O) 22,326,000 0.17 14.2% 70% $3,130 $1,180,838,661 $52.89 ENDOONTIC SERVICES CHILD/ADOLESCENT (6-18 Y/O) 48,121,000 1 0.0256 70% $400 $344,931,328 $7.17 MEDICALLY NECESSARY CARE (Specific Conditions) DENTAL PROSTHETIC SERVICES 1,250,000 0.2 --- 70% $1,252 $219,100,000 $175.28 DOC:ORBP1A.WK1 LJF (15APR93) Estimated Total Cost $27,527,589,854 Annual per capita cost/Targ. Pop $121.60 Monthly per capita cost/Targ. Po $10.13 Annual per capita cost/U.S. Pop. $105.82 Monthly per capita cost/U.S. Pop $8.82 Preliminary Staff Working Paper - For Illustrative Purposes Only TOTAL P.02 703 941 3951 Estimated Cost of Oral Health Benefits Package -- Total U.S Population Description of Proposed Oral Health Benefits for Adults (18 to 64 years of age) (Estimate Utilization Rate of 60 percent / 1994 adjusted dental fees) ESTIMATED PROJECTED TARGET SERVICE UTILIZATION TOTAL PER CAPITA SERVICE POPULATION FREQ/YR MODIFIER RATE COST/UNIT ANNUAL COST COST($)/YR (1995) ORAL HEALTH ASSESSMENT ORAL EXAMINATION (INI./PER.) 160,402,000 1 100% 60% $20.03 $1,927,711,236 $8.52 DENTAL RADIOGRAPHS 153,649,076 1 100% 60% $17.81 $1,641,894,024* $7.25 PROFESSIONAL APPLIED TOPICAL FLUORIDE ADULT TF/HIGH RISK (18-64 Y/O) 153,649,076 2 10% 60% $17.81 $328,378,805 $1.45 ORAL PROPHYLAXIS ORAL PROPHY (ADULT 18-64 Y/O) 153,649,076 1 45% 60% $44.52 $1,846,923,351 $8.16 DENTAL EMERGENCY already EMERGENCY EXAM 160,402,000 1 15% 100% $26.71 $642,650,613 $2.84 SEDATIVE FILLING 153,649,076 1 2% 100% $35.62 $109,459,602 $0.48 EMERGENCY TX OF PAIN 160,402,000 1 1.5% 100% $38.96 $93,738,929 $0.41 HSA EXTRACTION (SINGLE) 153,649,076 1 10% 100% $52.31 $803,738,316 $3.55 EXTRACTION (SURGICAL) 153,649,076 1 1% 100% $95.72 $147,072,895 $0.65 TRAUMATIC WOUND TX 160,402,000 1 0.5% 100% $61.22 $49,099,052 $0.22 ROUTINE RESTORATIVE SERVICES CORONAL REST. (ADULT 18-64 Y/O) 153,649,076 1 1.3 60% $51.20 $6,136,129,491 $27.11 ROOT REST. (ADULT 18-64 Y/O) 153,649,076 1 0.4 60% $51.20 $1,888,039,843 $8.34 PERIO MAINTENANCE CARE (S&RP) ADULT (18-64 Y/O) 153,649,076 1 54.0% 60% $67.89 $3,379,720,385 $14.93 MEDICALLY NECESSARY CARE (Specific Conditions) DENTAL PROSTHETIC SERVICES 933,000 0.125 ... 60% $1,393.51 $97,510,862 $0.43 DOC:OHC18-64.WK1 LJF (10NOV93) Revised cost est. using ARC info. OHC-Requested Estimated Total Cost $19,092,067,404 Annual per capita cost/Targ. Pop $84.34 Monthly per capita cost/Targ. Po $7.03 Annual per capita cost/U.S. Pop. $73.39 Monthly per capita cost/U.S. Pop $6.12 limited to 1 set of Bite-wings per 2yr. or 1 Full mouth sires per Syr. therefore costs is reduced by 50 percent: 05/24/94 17:17 LMR -> 94562878 NO. 600 P002 F:\HSA\EDLABOR\SUB\WILLIA.003 H.L.C. AMENDMENT To COMMITTEE PRINT (H.R. 3600) OFFERED BY MR. WILLIAMS Page 39, after line 18, insert the following: 1 (D) Annual fecal-occult blood tests for the 2 purpose of early detection of colon cancer. 3 (E) Flexible sigmoidoscopies for the pur- 4 pose of early detection of colon cancer every 3 5 years. Page 40, after line 15, insert the following: 6 (D) Annual fecal-occult blood tests for the 7 purpose of early detection of colon cancer. 8 (E) Flexible sigmoidoscopies for the pur- 9 pose of early detection of colon cancer every 3 10 years. May 20, 1994 DRAFT 5/12/94 MENTAL ILLNESS AND SUBSTANCE ABUSE BENEFITS COMPARISON Service Clinton Health Security Act Stark - Ways and Means Inpatient Before January 1, 2001, 30 days 90 days general hospital plus an additional 30 days under hospitals. certain circumstances.¹ 45 days psychiatric and hospitals with a 190 Cost sharing: day lifetime limit on Residential Lower - no copayment psychiatric hospitals. Services Higher - one day deductible, 20% coinsurance (expenses apply to o- Up to 135 days per o-p max) year intensive residential services², inpatient psychiatric benefits reduced by one day of inpatient care for every three days of residential. (The provision regarding the trade off needs clarification as to which of the annual inpatient limits is traded.) Secretary directed to develop standards for the appropriate management of these services. Cost sharing: Hospitals no coinsurance. General plan deductible of $500 individual/$750 per family applies. Cost sharing for residential not clearly specified. 'Includes general and psychiatric hospital, residential treatment centers, residential detoxification centers, crisis residential programs, mental health residential treatment programs, therapeutic family or group treatment homes, community residential treatment or recovery centers for substance abuse. ²Includes residential detoxification centers, crisis residential programs or mental illness residential treatment programs, therapeutic family or group treatment homes, community residential treatment centers, and recovery centers for substance abuse. Service Clinton Health Security Act Stark - Ways and Means Intensive Before January 1, 2001, two to Partial hospitalization Non- one substitute with inpatient covered for individuals Residential treatment plus maximum of 60 who would otherwise Treatment additional days at plan require inpatient discretion (partial psychiatric care. hospitalization, day treatment, psychiatric rehabilitation, home- Covers 90 days per year based services, ambulatory of additional intensive detoxification, behavioral aide community services services). (psychiatric rehabilitation, day Cost sharing: treatment services for Lower - no copayment, except $25 children, behavioral per visit for additional 60 days. aide services, in-home Higher - one day deductible, 20% services, case coinsurance, except 50% management services, coinsurance for additional 60 and ambulatory days. detoxification Before 1/1/2001, expenses do not services apply to o-o-p if for substance abuse, or for additional 60 days. Cost sharing: 20% coinsurance Service Clinton Health Security Act Stark - Ways and Means Outpatient Annual limit on some services Based on Medicare mental before January 1, 2001 No limits illness and Psychotherapy substance -30 visits for psychotherapy Cost sharing: abuse and collateral services. 20% coinsurance for services -four to one substitution at medication management discretion of plan. brief office visits, Substance abuse counseling and and initial diagnosis, relapse prevention 20% coinsurance for -four to one substitution at outpatient discretion of plan. psychotherapy services -30 group therapy visits if for children through received inpatient/residential or age 18. intensive non-residential 50% coinsurance for treatment within 12 months. other treatment -outpatient detoxification services. covered only in context of treatment program. Services without specified limit -screening and assessment, diagnosis, medical management, crisis services, somatic treatments, case management. Cost sharing: Lower - $10 copayment, except $25 for psychotherapy and collateral services (before 1/1/2001) and no copayment for case management. Higher - 20%, except 50% for psychotherapy and collateral services (before 1/2001) and none for case management. Before 1/1/2001 expenses do not apply to o-o-p max. X miller amendment uses 22 Clinton Health Security Stark - Ways and Means Service Act Other mental health By October 1, 1998 States given broad provisions States required to flexibility to submit plans for establish comprehensive integration. managed mental health programs for low-income adults and children with serious mental illness or emotional disturbance. Programs allow individuals to receive benefit package without limits and , at state option, with reduced copayments. Federal coverment establish standards for program eligibility. State submit plan including additional Federal, State, and local funds to be used to finance the program. NO.246 P002 05/11/94 18:17 LMR -> 94017321 202 225 5609 05/11/94 16:46 202 225 5609 GEORGE MILLER 4 002/020 F:\HSAVEDLABOR\SUB\MILLER.004 H.L.C. AMENDMENT To COMMITTEE PRINT (H.R. 3600) OFFERED BY MR. MILLER OF CALIFORNIA Page 30, strike lines 16 through 19 and insert the following: 1 (which are subject to section 1115), except- 2 (1) medical detoxification as required for the 3 management of medical conditions associated with 4 withdrawal from alcohol or drugs (which is not COV- 5 ered under such section); and 6 (2) treatment of a substance abuse disorder 7 that is necessary in order to ensure continuity of 8 care for an individual receiving hospital services 9 other than such treatment, where the individual was 10 receiving substance abuse treatment covered under 11 section 1115 prior to receiving such other hospital 12 services. Page 41, strike line 25 and insert "(c)), including case management.". Page 42, line 1, strike "nonresidential" and insert "community services for". Page 42, strike line 3 and insert "(d)), including case management.". May 10, 1994 NO.246 P003 05/11/94 18:17 LMR -> 94017321 202 225 5609 05/11/94 16:48 202 225 5609 GEORGE MILLER 4 003/020 F:\HSAVEDLABOR\SUB\MILLER.004 H.L.C. 2 Page 42, line 11, strike "NONRESIDENTLAL, and in- sert "INTENSIVE COMMUNITY SERVICES,". Page 42, line 14, strike "nonresidential" and insert "community services for". Page 42, line 17, strike "management" and insert "management, screening and assessment, crisis serv- ices,". Page 42, line 22, strike "disorder;" and insert "dis- order or, in the case of an individual 5 years of age or less than 5 years of age, is at risk for such a mental dis- order; Page 43, strike lines 8 through 19 and insert the following: 1 (2) CASE MANAGEMENT.-An eligible individual 2 who is receiving an item or service described in this 3 section that does not consist of case management is 4 eligible to receive coverage for case management in 5 addition to coverage for such item or service. Page 44, line 8, strike "nonresidential" and insert "community services for". Beginning on page 44, strike line 19 through page 45, line 2, and insert the following: May 10, 1994 NO. 246 P004 05/11/94 18:17 LMR -> 94017321 202 225 5609 05/11/94 16:47 202 225 5609 GEORGE MILLER 4 004/020 F:\HSAVEDLABOR\SUB\MILLER004 H.L.C. 3 1 (A) an inpatient of a hospital or a psy- 2 chiatric hospital; or 3 (B) a resident of a residential treatment 4 center, residential detoxification center, crisis 5 residential program, mental illness residential 6 treatment program, therapeutic family home, 7 group treatment home, community residential 8 treatment program, or recovery center for sub- 9 stance abuse. Beginning on page 45, strike line 21 through page 46, line 5 (and redesignate provisions accordingly). Beginning on page 46, strike line 15 through page 47, line 5 (and redesignate provisions accordingly). Page 47, after line 18, insert the following: 10 (E) ANNUAL AND LIFETIME LIMIT ON 11 HOSPITAL TREATMENT.-Prior to January 1, 12 2001, such treatment, when furnished to an in- 13 patient of a hospital that is not a psychiatric 14 hospital, is subject to an aggregate annual limit 15 of 90 days. Such treatment, when furnished to 16 an inpatient of a psychiatric hospital, is subject 17 to an aggregate annual limit of 45 days and an 18 aggregate lifetime limit of 190 days per individ- 19 ual. May 10, 1894 05/11/94 18:17 LMR -> 94017321 NO.246 P005 202 225 5609 05/11/94 16:47 202 225 5609 GEORGE MILLER 005/020 F:\HSAVEDLABOR\SUB\MILLER.004 H.L.C. 4 1 (F) ANNUAL LIMIT ON RESIDENTIAL 2 TREATMENT.-Prior to January 1, 2001, such 3 treatment, when furnished in a setting other 4 than a hospital or psychiatric hospital, is sub- 5 ject to an aggregate annual limit of 135 days. 6 The number of covered days of inpatient mental 7 illness and substance abuse treatment that are 8 available to an individual under the annual and 9 lifetime limits described in subparagraph (E) 10 shall be reduced by 1 day for each 3 covered 11 days of residential mental illness and substance 12 abuse treatment that are provided to the indi- 13 vidual. Page 47, line 19, strike "NONRESIDENTIAL TREAT- MENT.-" and insert "COMMUNITY SERVICES.-". Page 47, line 21, strike "nonresidential" and insert "community services for". Page 48, line 14, strike "nonresidential" and insert "community services for". Page 48, strike lines 16 through 22 (and redesignate provisions accordingly). Beginning on page 49, strike line 16 through page 50, line 14, and insert the following: May 10, 1994 NO.246 P005 05/11/94 18:18 LMR 94017321 202 225 5609 05/11/94 16:48 202 225 5609 GEORGE MILLER 006/020 F:\HSAVEDLABOR\SUB\MILLER.004 H.L.C. 5 1 (B) ANNUAL LIMIT.-Prior to January 1, 2 2001, such treatment is subject to an aggregate 3 annual limit of 90 days, except with respect to 4 individuals less than 22 years of age such an- 5 nual limit shall be 180 days. Page 50, line 16, strike "nonresidential" and insert "community services for". Page 50, line 22, strike "nonresidential" and insert "community services for". Page 51, strike lines 5 through 8 and insert "this subtitle.". Beginning on page 52, strike line 8 through page 54, line 23 (and redesignate provisions accordingly). Page 55, after line 12, insert the following (and re- designate provisions accordingly): 6 (f) UTILIZATION REVIEW REQUIREMENT.- 7 (1) IN GENERAL-The mental illness and sub- 8 stance abuse services that are described in this sec- 9 tion are not covered for an individual, after each ap- 10 plicable set of visits or set of treatment days de- 11 scribed in paragraph (2) has been provided to the 12 individual, unless the health plan in which the indi- 13 vidual is enrolled determines, based on a utilization May 10. 1994 NO. 246 P007 05/11/94 18:18 LMR -> 94017321 202 225 5609 05/11/94 16:48 202 225 5609 GEORGE MILLER 4 007/020 F:\HSAVEDLABOR\SUB\MILLER.004 H.L.C. 6 1 review, that such services continue to be medically 2 necessary or appropriate. 3 (2) SETS OF VISITS AND TREATMENT DAYS.- 4 (A) SETS OF VISITS.-The sets of visits re- 5 ferred to in paragraph (1) are- 6 (i) 1 initial set of 10 consecutive regu- 7 larly-scheduled outpatient psychotherapy 8 visits provided to an individual during a 9 period that does not exceed 12 months; 10 and 11 (ii) each subsequent set of 15 con- 12 secutive regularly-scheduled outpatient 13 psychotherapy visits provided to the índi- 14 vidual that immediately follows the initial 15 set of visits described in clause (i) or an- 16 other set of visits described in this clause. 17 (B) SETS OF TREATMENT DAYS.-The sets 18 of treatment days referred to in paragraph (1) 19 are- 20 (i) 1 initial set of 10 consecutive days 21 of inpatient and residential mental illness 22 and substance abuse treatment; and 23 (ii) each subsequent set of 15 con- 24 secutive days of inpatient and residential 25 mental illness and substance abuse treat- May 10. 1994 NO.246 P008 05/11/94 18:18 LMR + 94017321 202 225 5609 16:49 202 225 5609 GEORGE MILLER 008/020 05/11/94 HSAVEDLABOR\SUB\MILLER.004 H.L.C. 7 1 ment provided to the individual that imme- 2 diately follows the initial set of treatment 3 days described in clause (i) or another set 4 of treatment days described in this clause. 5 (3) MODIFICATION OF NUMERICAL SETS BY 6 BOARD.-The National Health Board may by regu- 7 lation modify the number of visits or days that con- 8 stitute a set referred to in paragraph (1). 9 (4) MODIFICATION OF NUMERICAL SETS BY 10 STATES.-With respect to mental illness and sub- 11 stance abuse services that are provided in a State, 12 the State may modify the number of visits or days 13 that constitute a set referred to in paragraph (1), if 14 the modification decreases such number below the 15 number specified in paragraph (2) or specified by 16 the Board under paragraph (3). Page 86, strike the items relating to intensive nonresidential mental illness and substance abuse treat- ment, outpatient mental illness and substance abuse treatment, and outpatient psychotherapy and insert the following: Intensive community services for mental illness and sub- stance abuse treatment 1115 No copayment 20 percent of applicable payment rate May 10, 1994 NO. 246 P009 05/11/94 18:18 LMR -> 94017321 202 225 5609 05/11/94 16:49 202 225 5609 GEORGE MILLER 009/020 F:\HSAVEDLABOR\SUB\MILLER004 H.L.C. 8 Outpatient mental illness and substance abose treat- ment (except psycho- therapy for individuals at least 22 years of age, col- lateral services, and case management) 1115 $10 per visit 20 percent of applicable payment rate Outpatient psychotherapy for individuals at least 22 years of age and collateral services 1115 $25 per visit 50 percent of applicable until January payment rate until 1, 2001, and January 1, 2001, and $10 per visit 20 percent thereafter thereafter Page 97, after line 22, insert the following (and re- designate provisions accordingly): 1 (7) CONTINUITY OF CARE FOR MENTAL AND 2 SUBSTANCE ABUSE DISORDERS-Ensuring con- 3 tinuity of care for individuals who require mental ill- 4 ness and substance abuse services described in sec- 5 tion 1115, but are not covered for such services be- 6 cause of annual or lifetime limits described in such 7 section, by contracting with providers who provide 8 mental illness and substance abuse services de- 9 scribed in such section, unless suitable agreements 10 with such providers cannot be reached. Page 224, beginning on line 11, strike "Each car- rier" through line 17 and insert the following: 11 (1) IN GENERAL-Each carrier providing a 12 health plan with an integrated health network (as May 10. 1994 NO. 246 P011 05/11/94 18:18 LMR 94017321 202 225 5609 05/11/94 16:50 202 225 5609 GEORGE MILLER 011/020 F:\HSAVEDLABOR\SUB\MILLER.004 H.L.C. 9 1 defined in section 1902(25)) shall enter into such 2 agreements with health care providers or have such 3 other arrangements as may be necessary to assure 4 the provision of all services covered by the com- 5 prehensive benefit package to eligible individuals en- 6 rolled with the plan through such a network. 7 (2) SPECIAL REQUIREMENTS FOR MENTAL ILL- 8 NESS AND SUBSTANCE ABUSE SERVICES.-Each car- 9 rier providing a health plan with an integrated 10 health network shall enter into such agreements with 11 health care providers or have such other arrange- 12 ments as may be necessary- 13 (A) to demonstrate specifically that the 14 carrier has the ability to provide, through such 15 network, to individuals who have severe mental 16 illness, serious emotional disturbance, or a sub- 17 stance abuse disorder, medically necessary or 18 appropriate- 19 (i) inpatient and residential mental ill- 20 ness and substance abuse treatment (de- 21 scribed in section 1115(c)) with respect to 22 a diagnosable substance abuse disorder in 23 a setting that is not a hospital or psy- 24 chiatric hospital; May 10, 1994 NO.246 P010 05/11/94 18:18 LMR -> 94017321 202 225 5609 05/11/94 18:50 202 225 5609 GEORGE MILLER 010/020 F:\HSAVEDLABOR\SUB\MILLER.004 H.L.C. 10 1 (ii) intensive community services for 2 mental illness and substance abuse treat- 3 ment (described in section 1115(d)); and 4 (iii) outpatient mental illness and sub- 5 stance abuse treatment consisting of case 6 management (described in section 7 1115(e)(1)(H); 8 (B) to ensure that the items and services 9 described in subparagraph (A) are provided to 10 all individuals enrolled under the plan by pro- 11 viders who have a demonstrated ability to iden- 12 tify individuals who require such treatment and 13 to deliver such treatment within a reasonable 14 distance from the residence of an individual; 15 (C) to ensure continuity of care for individ- 16 uals who require mental illness and substance 17 abuse services described in section 1115, but 18 are not covered for such services because of an- 19 nual or lifetime limits described in such section, 20 by developing appropriate plans and linkages 21 with public agencies that may provide such 22 services; and 23 (D) to ensure that the carrier has estab- 24 lished, or is establishing, linkages with existing 25 mental illness and substance abuse service de- May 10. 1994 05/11/94 18:19 LMR -> 94017321 NO.246 P012 202 225 5609 05/11/94 16:51 202 225 5609 GEORGE MILLER 1 012/020 F:\HSA\EDLABOR\SUB\MILLER.004 H.L.C. 11 1 livery programs in the plan service area for 2 services that are required under section 1115(g) 3 to be provided through an organized system of 4 care. 5 (3) SPECIAL REQUIREMENT TO CONTRACT WITH 6 STATE-DESIGNATED PROVIDERS.-In the case of a 7 carrier with respect to which a State has made a 8 finding that the carrier has not satisfied the require- 9 ment in subparagraph (A) or (B) of paragraph (2), 10 the carrier, if directed by the State, shall contract 11 with providers designated by the State as having 12 demonstrated experience in providing the services 13 described in paragraph (2)(A). May 10. 1994 05/11/94 18:19 LMR -> 94017321 NO.246 P013 202 225 5609 05/11/94 16:51 202 225 5809 GEORGE MILLER 013/020 F:\HSAVEDLABOR\SUB\MILLER.002 H.L.C. AMENDMENT To COMMITTEE PRINT (H.R. 3600) OFFERED BY MR. MILLER OF CALIFORNIA Beginning on page 55, strike "The" on line 16 through page 56, line 10, and insert the following (and redesignate provisions accordingly): 1 A health plan sponsor shall ensure that mental ill- 2 ness and substance abuse services described in this 3 section are furnished through an organized system 4 of care, as described in paragraph (2), if- 5 (A) the services are provided to an individ- 6 ual less than 22 years of age; 7 (B) the individual has a serious emotional 8 disturbance or a substance abuse disorder; and 9 (C) the individual is, or is at imminent risk 10 of being, subject to the authority of, or in need 11 of the services of- 12 (i) a public agency that serves the 13 needs of children, such as an agency in- 14 volved with child welfare or special edu- 15 cation; 16 (ii) the juvenile justice system; or 17 (iii) the criminal justice system. 18 (2) REQUIREMENTS FOR SYSTEM OF CARE.-In 19 this subsection, an "organized system of care" is a May 10. 1894 05/11/94 18:19 LMR -> 94017321 NO.246 P014 202 225 5609 05/11/94 16:52 202 225 5809 GEORGE MILLER 4 014/020 F:\HSAVEDLABOR\SUB\MILLER.002 H.L.C. 2 1 community-based service delivery network, which 2 may consist of public and private providers, that 3 meets the following requirements: Page 56, beginning on line 11, after "participation" insert "and coordination". Page 56, beginning on line 13, strike "area (includ- ing" and insert "area, including". Page 56, line 15, after "justice" insert "criminal justice". Page 56, line 17, strike "treatment)." and insert "treatment.". Page 56, line 25, strike "through" and insert "by". Page 56, line 25, strike "or" and insert "and". Page 57, line 1, strike "teams that" and insert "teams, which". Page 57, line 6, strike "children" and insert "indi- viduals". Page 57, line 7, after "age" insert "who have a seri- ous emotional disturbance or a substance abuse dis- order". May 10. 1984 05/11/94 18:19 LMR -> 94017321 NO.246 P015 202 225 5609 05/11/94 16:52 202 225 5609 GEORGE MILLER 015/020 F:\HSA\EDLABOR\SUB\MILLER.003 AMENDMENT TO COMMITTEE PRINT (H.R. 3600) OFFERED BY MR. MILLER OF CALIFORNIA Page 564, strike lines 1 through 24 (and conform line 8 on page 560 and the table of contents accordingly). Page 565, strike line 1 and all that follows through page 567, line 23, and insert the following part (and con- form the table of contents accordingly): 1 PART 3-ASSISTANCE FOR STATE MANAGED MEN- 2 TAL HEALTH AND SUBSTANCE ABUSE PRO- 3 GRAMS 4 SEC. 3531. AVAILABILITY OF ASSISTANCE. 5 (a) IN GENERAL.-The Secretary may make grants 6 to States for the development and operation of comprehen- 7 sive managed mental health and substance abuse pro- 8 grams that are integrated with the delivery of items and 9 services covered under the comprehensive benefits pack- 10 age. Such programs shall- 11 (1) promote the development of integrated de- 12 livery systems for the management of the mental 13 health and substance abuse services provided under 14 the comprehensive benefit package; 15 (2) give priority initially to providing services to 16 low-income adults with serious mental illness or sub- 17 stance abuse disorders and children with serious May 9, 1994 (3:29 p.m.) 05/11/94 18:19 LMR +> 94017321 NO. 246 P016 202 225 5609 05/11/94 16:53 202 225 5809 GEORGE MILLER 4 016/020 F:VHSAVEDLABOR\SUB\MILLER.003 2 1 emotional disturbance or substance abuse disorders 2 and provide for the phase-in of such services for all 3 eligible persons within 5 years; 4 (3) ensure that individuals participating in the 5 program have access to all medically necessary men- 6 tal health and substance abuse services; 7 (4) promote the linkage of mental health and 8 substance abuse services with primary and preven- 9 tive health care services; and 10 (5) meet such other requirements as the Sec- 11 retary may impose. 12 (b) EXCEPTION.-Nothing in this part shall be con- 13 strued as preventing States that have separate administra- 14 tive entities for mental health and for substance abuse 15 services from establishing separate comprehensive man- 16 aged care programs for such services and receiving assist- 17 ance under this part for either or both programs. 18 SEC. 3532. REQUIREMENTS FOR A PLAN. 19 In order to receive a grant under this part, a State 20 must have a plan for a comprehensive managed mental 21 health and substance abuse program, which is approved 22 by the Secretary. Such plan shall- 23 (1) describe the management, access, and refer- 24 ral structure that the State will use to promote and 25 achieve integration of mental health and substance May 9, 1994 (3:29 p.m.) 05/11/94 18:20 LMR -> 94017321 NO.246 P017 202 225 5609 05/11/94 16:53 202 225 5609 GEORGE MILLER d 017/020 F:\HSAVEDLABOR\SUBVMILLER.003 3 1 abuse services with the delivery of items and services 2 covered under the comprehensive benefits package 3 for eligible individuals in the State; 4 (2) describe how the State will ensure that pro- 5 viders of specialized services will meet appropriate 6 standards and provide assurances that the State has 7 complied with section 1201(a)(7) as it affects mental 8 health and substance abuse services; 9 (3) describe payment, utilization review, and 10 other mechanisms that the State will use to encour- 11 age appropriate service delivery and management of 12 costs; 13 (4) describe uniform patient placement criteria 14 that the State will use to ensure placement in appro- 15 priate substance abuse treatment; 16 (5) describe the process the State will use to 17 ensure that individuals will continue to have access 18 to treatment through referrals from nonhealth public 19 entities, such as the juvenile or criminal justice sys- 20 tems, or social service systems; 21 (6) specify the methods the State will use to en- 22 sure that individuals receiving services under the 23 program have access to all medically necessary and 24 appropriate mental health and substance abuse serv- 25 ices; May 9, 1994 (3:29 p.m.) 05/11/94 18:20 LMR -> 94017321 NO.246 P018 202 225 5609 05/11/94 16:54 202 225 5609 GEORGE MILLER 018/020 F:\HSA\EDLABOR\SUB\MILLER.003 4 1 (7) define terms that will be used by the State 2 in determining the eligibility of individuals for serv- 3 ices under the program; 4 (8) describe how health plans will use services 5 under the comprehensive managed mental health 6 and substance abuse programs established under 7 this part; 8 (9) describe the sources of funding, including 9 the medicaid program and the block grants author- 10 ized by title XIX of the Public Health Service Act, 11 that will be used by the State, other than the grant 12 received under this part, to operate the program, 13 and provide the status of any request for a medicaid 14 waiver relating to the delivery of mental health and 15 substance abuse services submitted by the State to 16 the Secretary; 17 (10) describe how the State provided for broad- 18 based public input in the development of the plan, 19 and the mechanism that will be used for ongoing 20 public comment on and review of amendments to the 21 plan; and 22 (11) describe grievance procedures that will be 23 available for individuals dissatisfied with their health 24 plan's participation in the comprehensive managed 25 mental health and substance abuse program, and May 9, 1994 (3:29 p.m.) 05/11/94 18:20 LMR -> 94017321 NO. 246 P019 202 22S 5609 05/11/94 16:54 202 223 5609 GEORGE MILLER a 019/020 F:\HSAVEDLABOR\SUB\MILLER.003 5 1 mechanisms that will be available to review the per 2 formance of health plans and fee-for-service arrange- 3 ments to ensure against undertreatment. 4 SEC. 3533. MAINTENANCE OF EFFORT. 5 States receiving assistance under this part shall 6 maintain expenditures of non-Federal funds, including 7 State medicaid expenditures and State substance abuse 8 treatment expenditures required by title XIX of the Public 9 Health Services Act, for all covered services for covered 10 persons provided under the comprehensive managed men- 11 tal health and substance abuse program at the level of 12 such expenditures for the fiscal year preceding the first 13 fiscal year for which the State receives such a grant. Such 14 level must be adjusted annually for inflation in accordance 15 with the general health care inflation factor (as defined 16 in section 6001(a)(3)), but may be reduced in proportion 17 to reductions in the State population. 18 SEC. 3534. ADDITIONAL FEDERAL RESPONSIBILITIES. 19 The Secretary shall, upon the submission of a State's 20 plan- 21 (1) ensure the timely consideration of any re- 22 quest for a medicaid waiver relating to the delivery 23 of mental health and substance abuse services sub- 24 mitted by the State to the Secretary, May 9, 1994 (3:29 a.m.) 05/11/94 18:20 LMR -> 94017321 NO. 246 P020 202 225 5609 05/11/94 16:55 202 225 5609 GEORGE MILLER 4 020/020 F:\HSAVEDLABOR\SUB\MILLER.003 6 1 (2) affirm that the State has met the respon- 2 sibilities required under section 1201(a)(7), and 3 (3) affirm that carriers providing health plans 4 in the State meet the requirements of paragraphs 5 (2) and (3) of section 1407(a). 6 SEC. 3535. AUTHORIZATION OF APPROPRIATIONS Health 7 There are authorized to be appropriated Bener face grants THE 8 under this part $100,000,000 for each of the fiscal years 9 1996 through 2000. 10} store UOURSE <<< date. - Ex May 9, 1994 (3:29 p.m.) 05/11/94 18:01 LMR 94017321 NO. 245 P001 COMMITTEE ON EDUCATION AND LABOR Subcommittee on Labor-Management Relations U.S. House of Representatives 320 Cannon House Office Building Washington, DC 20515 phone: (202) 225-5768 fax: (202) 225-3614 FACSIMILE TRANSMISSION SHEET DATE: 5/11 TO: SHARMAN FROM: Jon Weintraub Fred Feinstein Phyllis Borzi Rick Jerue Gail Brown Susie Ringel Allison Hogue Tony Guiles 8 NUMBER OF PAGES TO FOLLOW: MESSAGE: Here's the rest of William's mental health pager - let me know if you need any thing else - Susie 40 41 I (1) IMMUNIZATIONS.-The immunizations spec- 1 (4) Targeted health advice and counseling, in- 2 ified in this subsection are as follows: NO.245 P002 2 cluding nutrition counseling. 3 (A) Booster immunizations against tetanus 3 (5) The administration of age-appropriate im- 4 and diphtheria every 10 years. 4 munizations and tests specified in subsections (b) 5 (B) Age-appropriate immunizations for the 5 through (b). 6 following illnesses: 6 (k) IMMUNIZATIONS AND TESTS NOT ADMINISTERED 7 (i) Influenza. 7 DURING CLINICIAN VISIT-Notwithstanding subsection 8 (ii) Pneumococcal invasive disease. 8 (j)(5), the clinical preventive services described in this sec- 9 (2) TESTS.-The tests specified in this sub- 9 tion include an immunization or test described in this sec- 10 section are as follows: 10 tion that is administered to an individual consistent with 11 (A) Annual Papanicolaou smears, pelvic 11 any periodicity schedule for the immunization or test dur- 12 exams, and clinical breast examinations for fe- 12 ing the age range specified for the immunization or test, 13 males. 13 and any administration fee for such immunization or test, 14 (B) Annual mammograms for females. 14 even if the immunization or test is not administered dur- 15 (C) Cholesterol every 5 years. 15 ing a clinician visit. 16 (3) CLINICIAN VISITS.-The clinician visits 16 SEC. 1115. MENTAL ILLNESS AND SUBSTANCE ABUSE SERV. 17 specified in this subsection are 1 clinician visit every 17 ICES. 18 year. 05/11/94 18:01 LMR 94017321 18 (a) COVERAGE.-The mental illness and substance 19 (j) CLINICIAN VISIT.-For purposes of this section, 19 abuse services that are described in this section are the 20 the term "clinician visit" includes the following health pro- 20 following items and services for eligible individuals, as de- 21 fessional services (as defined in section 1112(c)): 21 fined in section 1001(c), who satisfy the eligibility require- 22 (1) A complete medical history. 22 ments in subsection (b): 23 (2) An appropriate physical examination. 23 (1) Inpatient and residential mental illness and 24 (3) Risk assessment. 24 substance abuse treatment (described in subsection 25 (c)). Tue 1. submite 42 43 1 (2) Intensive nonresidential mental illness and I For purposes of this paragraph, an individual who NO.245 P003 2 substance abuse treatment (described in subsection 2 has a diagnosable mental disorder or a diagnosable 3 (d)). 3 substance abuse disorder, is receiving treatment for 4 (3) Outpatient mental illness and substance 4 such disorder, but does not satisfy the functional im- 5 abuse treatment (described in subsection (e)), in- 5 pairment criterion in subparagraph (B) shall he 6 cluding case management, screening and assessment, 6 treated as satisfying such criterion if the individual 7 crisis services, and collateral services. 7 would satisfy such criterion without such treatment. 8 (b) ELIGIBILITY.-The eligibility requirements re- 8 (2) CASE MANAGEMENT.-An eligible individual 9 ferred to in subsection (a) are as follows: 9 is eligible to receive coverage for case management 10 (1) INPATIENT, RESIDENTIAL, 10 if- 11 NONRESIDENTIAL, AND OUTPATIENT TREATMENT.- 11 (A) a health professional designated by the 12 An eligible individual is eligible to receive coverage 12 health plan in which the individual is enrolled 13 for inpatient and residential mental illness and sub- 13 determines that the individual should receive 14 stance abuse treatment, intensive nonresidential 14 such services; and 15 mental illness and substance abuse treatment, or 15 (B) the individual is eligible to receive cov- 16 outpatient mental illness and substance abuse treat- 16 erage for, and is receiving, outpatient mental 94817321 + 17 ment (except case management and collateral serv- 17 illness and substance abuse treatment with re- 18 ices) if the individual- 18 spect to a diagnosable mental disorder or a 19 (A) has, or has had during the 1-year pe- 19 diagnosable substance abuse disorder. 05/11/94 18:01 LMR 20 riod preceding the date of such treatment, a 20 (3) SCREENING AND ASSESSMENT AND CRISIS 21 diagnosable mental disorder or a diagnosable 21 SERVICES.-All eligible individuals enrolled under a 22 substance abuse disorder; and 22 health plan are eligible to receive coverage for out- 23 (B) is experiencing, or is at significant risk 23 patient mental illness and substance abuse treat- 24 of experiencing, functional impairment in fam- 24 ment consisting of screening and assessment and 25 ily, work, school, or community activities. 25 crisis services. Title 1, Bubtitle B 44 45 1 (4) COLLATERAL SERVICES.-An eligible indi- I treatment and recovery center for substance NO.245 P004 2 vidual is eligible to receive coverage for outpatient 2 abuse. 3 mental illness and substance abuse treatment con- 3 The National Health Board shall specify those 4 sisting of collateral services if the individual is a 4 health professional services described in section 1112 5 family member (described in section 1011(b)) of an 5 that shall be treated as inpatient and residential 6 individual who is receiving inpatient and residential 6 mental illness and substance abuse treatment when 7 mental illness and substance abuse treatment, inten- 7 provided to such an inpatient or resident. 8 sive nonresidential mental illness and substance 8 (2) LMITATIONS.-Coverage for inpatient and 9 abuse treatment, or outpatient mental illness and 9 residential mental illness and substance abuse treat- 10 substance abuse treatment. 10 ment is subject to the following limitations: 11 (c) INPATIENT AND RESIDENTIAL TREATMENT.- 11 (A) RESIDENTIAL MENTAL ILLNESS 12 (1) DEFINITION.-For purposes of this subtitle, 12 TREATMENT.-Such treatment, when provided 13 the term "inpatient and residential mental illness 13 with respect to a diagnosable mental disorder in 14 and substance abuse treatment" means the items 14 a setting that is not a hospital or a psychiatric 15 and services described in paragraphs (1) through (3) 15 hospital, is covered only to avert the need for, 16 of section 1861(b) of the Social Security Act when 16 or as an alternative to, treatment in a hospital 17 18:01 LMR 94017321 provided with respect to a diagnosable mental dis- 17 or a psychiatric hospital, as determined by a 18 order or a diagnosable substance abuse disorder to- 18 health professional designated by the health 19 (A) an inpatient of a hospital, psychiatric 19 plan in which the individual receiving such 20 hospital, residential treatment center, residen- 20 treatment is enrolled. 21 tial detoxification center, crisis residential pro- 21 (B) RESIDENTIAL SUBSTANCE ABUSE 22 gram, or mental illness residential treatment 22 TREATMENT.-Such treatment, when provided 05/11/94 23 program; or 23 with respect to a diagnosable substance abuse 24 (B) a resident of a therapeutic family or 24 disorder in a setting that is not a hospital or 25 group treatment home or community residential 25 a psychiatric hospital, is covered only if a 46 I health professional designated by the health 1 (ii) the medical condition of the indi- 2 plan in which the individual receiving such 2 vidual requires inpatient treatment in a NO.245 P005 3 treatment is enrolled determines (based on cri- 3 hospital or a psychiatric hospital in order 4 teria that the plau may choose to employ) that 4 to initiate, change, or adjust pharma- 5 the individual should receive such treatment. 5 cological or somatic therapy. 6 (C) LEAST RESTRICTIVE SETTING.-Such 6 (E) INPATIENT HOSPITAL TREATMENT 7 treatment is covered only when- 7 FOR SUBSTANCE ABUSE.-Such treatment, 8 (i) provided to an individual in the 8 when provided in a hospital or a psychiatric 9 least restrictive inpatient or residential set- 9 hospital with respect to a diagnosable substance 10 ting that is effective and appropriate for 10 abuse disorder, is covered under this section 11 the individual; and 11 only for detoxification requiring the manage- 12 (ii) less restrictive intensive 12 ment of psychiatric conditions associated with 13 nonresidential or outpatient treatment 13 withdrawal from alcohol or drugs. The items 14 would be ineffective or inappropriate. 14 and services described in this section do not in- 15 (D) ANNUAL LIMIT.-Prior to January 1, 15 clude medical detoxification as required for the 16 2001, such treatment is subject to an aggregate 16 management of medical conditions associated 17 -> 94017321 annual limit of 30 days. A maximum of 30 ad- 17 with withdrawal from alcohol or drugs (which is 18 ditional days of such treatment shall be covered 18 covered under section 1111). 19 for an individual if a health professional des- 19 (d) INTENSIVE NONRESIDENTIAL TREATMENT.- 20 ignated by the health plan in which the individ- 20 (1) DEFINITION.-For purposes of this subtitle, 05/11/94 18:01 LMR 21 ual is enrolled determines in advance that- 21 the term "intensive nonresidential mental illness and 22 (i) the individual poses a threat to his 22 substance abuse treatment" means diagnostic or 23 or her own life or the life of another indi- 23 therapeutic items or services provided with respect 24 vidual; or 24 to a diagnosable mental disorder or a diagnosable 25 substance abuse disorder to an individual- THE s, D 48 49 I (A) participating in a partial hospitaliza- 1 (i) to avert the need for, or as an al- NO.245 P006 2 tion program, a day treatment program, a psy- 2 ternative to, treatment in residential or in- 3 chiatric rehabilitation program, or an ambula- 3 patient settings; 4 tory detoxification program; or 4 (ii) to facilitate the earlier discharge 5 (B) receiving home-based mental illness 5 of an individual receiving inpatient or resi- 6 services or behavioral aide mental illness serv- 6 dential care; 7 ices. 7 (iii) to restore the functioning of an 8 The National Health Board shall specify those 8 individual with a diagnosable mental dis- 9 health professional services described in section 1112 9 order or a diagnosable substance abuse 10 that shall be treated as intensive nonresidential men- 10 disorder; or 11 tal illness and substance abuse treatment when pro- 11 (iv) to assist such an individual to de- 12 vided to such an individual. 12 velop the skills and gain access to the sup- 13 (2) LIMITATIONS.-Coverage for intensive 13 port services the individual needs to 14 nonresidential mental illness and substance abuse 14 achieve the maximum level of functioning 15 treatment is subject to the following limitations: 15 of the individual within the community. 16 (A) DISCRETION OF PLAN-An individual 16 (C) ANNUAL LIMIT.- -> 94017321 17 shall receive coverage for such treatment if a 17 (i) IN GENERAL-Prior to January 1, 18 health professional designated by the health 18 2001, the number of covered days of inpa- 19 plan in which the individual is enrolled deter- 19 tient and residential mental illness and 20 mines (based on criteria that the plan may 20 substance abuse treatment that are avail- 05/11/94 18:01 LMR 21 choose to employ) that the individual should re- 21 able to an individual under the 30-day 22 ceive such treatment. 22 limit described in the first sentence of sub- 23 (B) TREATMENT PURPOSES.-Such treat- 23 section (c)(2)(D) shall be reduced by 1 day 24 ment is covered only when provided- 24 for each 2 covered days of intensive 25 nonresidential mental illness and substance Title I, Subtitle B Title I. Subtitle B 50 51 1 NO.245 P007 abuse treatment that are provided to the 1 paid by or on behalf of the individual for such 2 individual, until such number is reduced to 2 treatment, may not be applied toward any an- 3 zero. 3 nual out-of-pocket limit on cost sharing under 4 (ii) ADDITIONAL DAYS.-After the 4 any cost sharing schedule described in part 3 of 5 number of covered days referred to in 5 this subtitle if such treatment is provided- 6 clause (i) has been reduced to zero with re- 6 (i) with respect to a diagnosable sub- 7 spect to an individual, the individual shall 7 stance abuse disorder; or 8 receive coverage for a maximum of 60 days 8 (ii) pursuant to subparagraph (C)(ii). 9 of intensive nonresidential mental illness 9 (e) OUTPATIENT TREATMENT.- 10 and substance abuse treatment if a health 10 (1) DEFINITION.-For purposes of this subtitle, 11 professional designated by the health plan 11 the term "outpatient mental illness and substance 12 in which the individual is enrolled deter- 12 abuse treatment" means the following services pro- 13 mines that the individual should receive 13 vided with respect to a diagnosable mental disorder 14 such treatment. 14 or a diagnosable substance abuse disorder in an out- 15 (D) DETOXIFICATION.-Intensive 15 patient setting: 94817321 r 16 nonresidential mental illness and substance 16 (A) Screening and assessment. 17 abuse treatment consisting of detoxification is 17 (B) Diagnosis. 18 covered only if it is provided in the context of 18 (C) Medical management. 19 a treatment program. 19 (D) Substance abuse counseling and re- 05/11/94 18:02 LMR 20 (E) OUT-OF-POCKET MAXIMUM.-Prior to 20 lapse prevention. 21 January 1, 2001, expenses for intensive 21 (E) Crisis services. 22 nonresidential mental illness and substance 22 (F) Somatic treatment services. 23 abuse treatment that an individual incurs prior 23 (G) Psychotherapy. 24 to satisfying a deductible applicable to such 24 (H) Case management. 25 treatment, and copayments and coinsurance 25 (I) Collateral services. Title 1. Subtitle B Title I, Subtitle B 53 52 I (2) LIMITATIONS.-Coverage for outpatient health plan in which the individual receiv- NO.245 P008 1 2 mental illness and substance abuse treatment is sub- ing treatment is enrolled, to prevent has- 2 3 pitalization or to facilitate earlier hospital 3 ject to the following limitations: 4 release, for which the number of covered 4 (A) HEALTH PROFESSIONAL SERVICES.- 5 Such treatment is covered only when it con- days of inpatient and residential mental ill- 5 6 ness and substance abuse treatment that 6 stitutes health professional services (as defined 7 are available to an individual under the 30- 7 in section 1112(c)(2)). 8 8 (B) DISCRETION OF PLAN.-An individual day limit described in the first sentence of 9 9 shall receive coverage for outpatient mental ill- subsection (c)(2)(D) shall be reduced by 1 10 10 ness and substance abuse treatment consisting day for each 4 visits. After such number 11 of substance abuse counseling and relapse pre- has been reduced to zero, no additional vis- 11 12 vention if a health professional designated by its under the preceding sentence may be 12 13 covered. 13 the health plan in which the individual is en- 14 rolled determines (based on criteria that the (ii) SUBSTANCE ABUSE COUNSELING 14 15 AND RELAPSE PREVENTION.- 15 plan may choose to employ) that the individual 16 94017321 16 should receive such treatment. This subpara- (I) IN GENERAL.-Except as pro- 17 17 graph does not apply to group therapy covered vided in subclause (II), the number of 18 18 pursuant to subparagraph (C)(ii)(II). covered days of inpatient and residen- 19 tial mental illness and substance 05/11/94 18:02 LMR -> 19 (C) ANNUAL LIMITS.- 20 abuse treatment that are available to 20 (i) PSYCHOTHERAPY AND COLLAT- 21 21 ERAL SERVICES.-Prior to January 1, an individual under the 30-day limit 22 described in the first sentence of sub- 22 2001, psychotherapy and collateral services 23 23 are subject to an aggregate annual limit of section (c)(2)(D) shall be reduced by 24 30 visits per individual. Additional visits 1 day for each 4 visits for substance 24 25 may be covered, at the discretion of the abuse counseling and relapse preven- 25 Title I, Subtitle B Title 1. Subtitle B 54 55 I tion that are covered for the individ- I ing of detoxification is covered only if it is pro- NO.245 P009 2 ual under subparagraph (B). After 2 vided in the context of a treatment program. 3 such number has been reduced to 3 (E) OUT-OF-POCKET MAXIMUM.-Prior to 4 zero, no visits for substance abuse 4 January 1, 2001, expenses for outpatient men- 5 counseling and relapse prevention may 5 tal illness and substance abuse treatment that 6 be covered, except as provided in 6 an individual incurs prior to satisfying a de- 7 subclause (II). 7 ductible applicable to such treatment, and 8 (II) GROUP THERAPY.-Prior to 8 copayments and coinsurance paid by or on be- 9 January 1, 2001, substance abuse 9 half of the individual for such treatment, may 10 counseling and relapse prevention con- 10 not be applied toward any annual out-of-pocket 11 sisting of group therapy is subject to 11 limit on cost sharing under any cost sharing 12 a separate aggregate annual limit of 12 schedule described in part 3 of this subtitle. 13 30 visits, if such therapy occurs with- 13 (f) SPECIAL DELIVERY REQUIREMENTS FOR SERV. 14 in 12 months after the individual has 14 ICES PROVIDED TO CHILDREN.- 15 received, with respect to a diagnosable 15 (1) REQUIRING SERVICES TO BE PROVIDED 16 substance abuse disorder, inpatient 16 THROUGH ORGANIZED SYSTEMS OF CARE.-The 17 and residential mental illness and sub- 17 mental illness and substance abuse services de- 05/11/94 18:02 LMR 94017321 18 stance abuse treatment or intensive 18 scribed in this section shall be included in the com- 19 nonresidential mental illness and sub- 19 prehensive benefit package with respect to an eligible 20 stance abuse treatment. The provi- 20 individual under 22 years of age only if such services 21 sions of clause (i) and subclause (I) 21 are provided through an organized system of care 22 do not apply to therapy that is de- 22 described in paragraph (2). 23 scribed in the preceding sentence. 23 (2) REQUIREMENTS FOR SYSTEMS OF CARE.- 24 (D) DETOXIFICATION.-Outpatient mental 24 In this subsection, an "organized system of care" is 25 illness and substance abuse treatment consist- 25 a community-based system established by an appli- 05/11/94 17:22 LMR 94017321 NO.237 P001 COMMITTEE ON EDUCATION AND LABOR Subcommittee on Labor-Management Relations U.S. House of Representatives 320 Cannon House Office Building Washington, DC 20515 phone: (202) 225-5768 fax: (202) 225-3614 FACSIMILE TRANSMISSION SHEET DATE: 5/11 SHARMAN TO: FROM: Jon Weintraub Fred Feinstein Phyllis Borzi Rick Jerue Gail Brown Susie Ringel X Allison Hogue Tony Guiles NUMBER OF PAGES TO FOLLOW: 7 MESSAGE: Here are mental health pageson the 2 programs- I'll fax the benefits section next - let me know if you need more, Title I, Subtitle B Title 1. Subtitle B 54 55 I tion that are covered for the individ- 1 ing of detoxification is covered only if it is pro- 2 ual under subparagraph (B). After 2 vided in the context of a treatment program. 3 such number has been reduced to 3 (E) OUT-OF-POCKET MAXIMUM.-Prior to 05/11/94 17:22 4 zero, no visits for substance abuse 4 January 1, 2001, expenses for outpatient men- 5 counseling and relapse prevention may 5 tal illness and substance abuse treatment that 6 be covered, except as provided in 6 an individual incurs prior to satisfying a de- 7 subclause (II). 7 ductible applicable to such treatment, and 8 (II) GROUP THERAPY.-Prior to 8 copayments and coinsurance paid by or on be- LMR 94017321 9 January 1, 2001, substance abuse 9 half of the individual for such treatment, may 10 counseling and relapse prevention con- 10 not be applied toward any annual out-of-pocket 11 sisting of group therapy is subject to 11 limit on cost sharing under any cost sharing 12 a separate aggregate annual limit of 12 schedule described in part 3 of this subtitle. 13 30 visits, if such therapy occurs with- 13 (f) SPECIAL DELIVERY REQUIREMENTS FOR SERV- 14 in 12 months after the individual has 14 ICES PROVIDED TO CHILDREN.- 15 received, with respect to a diagnosable 15 (1) REQUIRING SERVICES TO BE PROVIDED 16 substance abuse disorder, inpatient 16 THROUGH ORGANIZED SYSTEMS OF CARE.-The 17 and residential mental illness and sub- 17 mental illness and substance abuse services de- 18 stance abuse treatment or intensive 18 scribed in this section shall be included in the com- 19 nonresidential mental illness and sub- 19 prehensive benefit package with respect to an eligible 20 stance abuse treatment. The provi- 20 individual under 22 years of age only if such services 21 sions of clause (i) and subclause (I) 21 are provided through an organized system of care 22 do not apply to therapy that is de- 22 described in paragraph (2). 23 scribed in the preceding sentence. 23 (2) REQUIREMENTS FOR SYSTEMS OF CARE.- NO.237 P002 24 (D) DETOXIFICATION.-Outpatient mental 24 In this subsection, an "organized system of care" is 25 illness and substance abuse treatment consist- 25 a community-based system established by an appli- 56 57 I cable health plan for the provision of mental illness I multiagency teams that are recognized and fol- 2 and substance abuse services described in this sec- 2 lowed by the applicable agencies and providers 3 tion that meets the following requirements: 3 in the area. 4 (A) The system has established linkages 4 (E) The system ensures the delivery and 5 with existing mental illness and substance 5 coordination of the range of mental illness and 6 abuse service delivery programs in the plan 6 substance abuse services required by children 7 service area (or is in the process of developing 7 under 22 years of age. 8 or operating a system with appropriate public 8 (F) The system provides for the manage- 05/11/94 17:22 LMR 94017321 + 9 agencies in the area to coordinate the delivery 9 ment of the individualized treatment plans de- 10 of such services to individuals in the area). 10 scribed in subparagraph (D) and for a flexible 11 (B) The system provides for the participa- 11 response to changes in treatment needs over 12 tion of multiple agencies and providers that 12 time. 13 serve the needs of children in the area (includ- 13 (g) OTHER DEFINITIONS.-For purposes of this sub- 14 ing agencies and providers involved with child 14 title: 15 welfare, education, juvenile justice, health care, 15 (1) CASE MANAGEMENT.-The term "case man- 16 mental health, and substance abuse prevention 16 agement" means services that assist individuals in 17 and treatment). 17 gaining access to needed medical, social, educational, 18 (C) The system provides for the involve- 18 and other services. 19 ment of the families of children to whom mental 19 (2) DIAGNOSABLE MENTAL DISORDER AND 20 illness and substance abuse services are pro- 20 DIAGNOSABLE SUBSTANCE ABUSE DISORDER.-The 21 vided in the planning of treatment and the de- 21 terms "diagnosable mental disorder" and 22 livery of services. 22 "diagnosable substance abuse disorder" mean a dis- 23 (D) The system provides for the develop- 23 order that- 24 ment and implementation of individualized 24 (A) is listed in the Diagnostic and Statis- NO.237 NO. P003 25 treatment plans through multidisciplinary or 25 tical Manual of Mental Disorders, Third Edi- Title I, Subtitle B Title 1, Bubtitle B 58 59 1 tion, Revised or a revised version of such man- 1 (B) in the case of an item or service pro- 2 ual (except V Codes for Conditions Not Attrib- 2 vided to an individual whose applicable health 3 utable to a Mental Disorder That Are a Focus 05/11/94 17:23 3 plan is specified pursuant to section 1004(b)(2), 4 of Attention or Treatment); 4 a facility operated by the Department of Veter- 5 (B) is the equivalent of a disorder de- 5 ans Affairs that is engaged in providing services 6 scribed in subparagraph (A), but is listed in the 6 to inpatients that are equivalent to the services 7 International Classification of Diseases, 9th Re- 7 provided by a psychiatric hospital; and 8 vision, Clinical Modification, Third Edition or a LMR 94017321 8 (C) in the case of an item or service pro- 9 revised version of such text; or 9 vided to an individual whose applicable health 10 (C) is listed in any authoritative text speci- 10 plan is specified pursuant to section 1004(b)(3), 11 fying diagnostic criteria for mental disorders or 11 a facility operated by the Indian Health Service 12 substance abuse disorders that is identified by 12 that is engaged in providing services to inpa- 13 the National Health Board. 13 tients that are equivalent to the services pro- 14 (3) PSYCHIATRIC HOSPITAL-The term "psy- 14 vided by a psychiatric hospital. 15 chiatric hospital" has the meaning given such term 15 SEC. 1116. FAMILY PLANNING SERVICES AND SERVICES 16 in section 1861(f) of the Social Security Act, except 16 FOR PREGNANT WOMEN. 17 that such term shall include— 17 The services described in this section are the follow- 18 (A) in the case of an item or service pro- 19 18 ing items and services: vided to an individual whose applicable health 19 20 (1) Voluntary family planning services. plan is specified pursuant to section 1004(b)(1), 20 21 (2) Contraceptive devices that- a facility of the uniformed services under title 21 22 (A) may only be dispensed upon prescrip- 10, United States Code, that is engaged in pro- 22 23 tion; and viding services to inpatients that are equivalent NO.237 P004 23 24 (B) are subject to approval by the Sec- to the services provided by a psychiatric hos- 24 25 retary of Health and Human Services under the pital; 25 Federal Food, Drug, and Cosmetic Act. Title III, Subtitle Title UI, Subtitle F 560 561 1 except to the extent incousistent with the purpose de- I (1) Information on the number of individuals 2 scribed in subsection (a), subpart C of part 2 of subtitle 2 served by or through mental illness and substance 3 E applies to such assistance to the same extent and in 3 abuse programs administered by State and local 4 the same manner as such subpart applies to loans and 4 agencies and the proportion who are eligible persons 5 loan guarantees under section 3441. 5 under title I. 6 PART 2-AUTHORITIES REGARDING 6 (2) The following information on services fur- 05/11/94 17:23 LMR 94017321 7 PARTICIPATING STATES 7 nished to eligible persons: 8 Subpart A-Report 8 (A) Each type of benefit furnished. 9 SEC. 3511. REPORT ON INTEGRATION OF MENTAL HEALTH 9 (B) The mental illness diagnoses for which 10 SYSTEMS. 10 each type of benefit is covered, the amount, du- 11 (a) IN GENERAL.-As a condition of being a partici- 11 ration and scope of coverage for each covered 12 pating State under title I, each State shall, not later than 12 benefit, and any applicable limits on benefits. 13 October 1, 1998, submit to the Secretary a report on (in- 13 (C) Cost sharing rules that apply. 14 cluding a plan for) the measures to be implemented by 14 (3) Information on the extent to which each 15 the State to achieve the integration of the mental illness 15 health provider furnishing mental illness and sub- 16 and substance abuse services of the State and its political 16 stance abuse services under a State program partici- 17 subdivisions with the mental illness and substance abuse 17 pates in one or more regional or corporate alliance 18 services that are included in the comprehensive benefit 18 health plans, and, in the case of providers that do 19 package under title I. The plan required in the preceding 19 not so participate, the reasons for the lack of par- 20 sentence shall meet the conditions described in section 20 ticipation. 21 3074(b). 21 (4) The amount of revenues from health plans 22 (b) REQUIRED CONTENTS.-With respect to the pro- 22 received by mental illness and substance abuse pro- NO.237 P005 23 vision of items and services relating to mental illness and 23 viders that are participating in such health plans 24 substance abuse, the report of a State under subsection 24 and are funded under one or more State programs. 25 (a) shall. at a minimum. coutain the following information: Title IIL, Subtitle F Title III, Subtitle F 562 563 1 (5) With respect to the two years preceding the 1 fit package will continue to be furnished to such en- 2 year in which the State becomes a participating 2 rollees. 3 State under title I- 3 (8) A description of the conditions under which 4 (A) the amount of funds expended by the 4 the integration of mental illness and substance abuse 5 State and its political subdivisions for each of 5 providers into regional and corporate alliances can 6 such years for items and services that are in- 6 be achieved, and an identification of changes in par- 7 cluded in the comprehensive benefit package 05/11/94 17:23 LMR -> 94017321 7 ticipation and certification requirements that are 8 under such title; 8 needed to achieve the integration of such. programs 9 (B) the amount of funds expended for 9 and providers into health plans. 10 medically necessary and appropriate items and 10 (9) If the integration of mental illness and sub- 11 services not included in such benefit package, 11 stance abuse programs operated by the State into 12 including medical care, other health care, and 12 one or more health plans is not medically appro- 13 supportive services related to the provision of 13 priate or feasible for one or more groups of individ- 14 health care. 14 nais treated under State programs, a description of IS (6) An estimate of the amount that the State 15 the reasons that integration is not feasible or appro- 16 will expend to furnish items and services not in- 16 priate and a plan for assuring the coordination for 17 cluded in such package once the expansion of cov- 17 such individuals of the care and services covered 18 erage for mental illness and substance abuse services 18 under the comprehensive benefit package with the 19 is implemented in the year 2001. 19 additional items and services furnished by such pro- 20 (7) A description of how the State will assure 20 grams. 1 that all individuals served by mental illness and sub- 21 (c) GENERAL PROVISIONS.-Reports under sub- 22 stance abuse programs funded by the State will be 22 section (a) shall be provided at the time and in the manner 23 enrolled in a health plan and how mental illness and 23 prescribed by the Secretary. NO.237 P006 24 substance abuse services not covered under the bene- Title III, Subtitle F 564 565 1 1 Subpart B-Pilot Program PART 3-ASSISTANCE FOR STATE MANAGED 2 2 SEC. 3521. PILOT PROGRAM. MENTAL HEALTH PROGRAMS 3 (a) IN GENERAL-The Secretary shall establish a 3 SEC. 3531. AVAILABILITY OF ASSISTANCE. 4 4 pilot program to demonstrate model methods of achieving (a) IN GENERAL-The Secretary may make grants 5 the integration of the mental illness and substance abuse 5 to States for the development and operation of comprehen- 6 services of the States with the mental illness and sub- 6 sive managed mental health programs that meet the re- 05/11/94 17:23 LMR 94017321 + 7 stance abuse services that are included in the comprehen- 7 quirements of section 3532 8 8 sive benefit package under title I. (b) ELIGIBILITY OF STATE.-In order to receive a 9 (b) CERTAIN CONSIDERATIONS,-Witb respect to the 9 grant under this part, a State shall submit to the Sec- 10 provision of items and services relating to mental illness 10 retary (at such time and in such form as the Secretary 11 and substance abuse, the Secretary, in carrying out sub- 11 may require) an application containing such information 12 section (a), shall consider the following: 12 and assurances as the Secretary may require. 13 (1) The types of items and services needed in 13 SEC. 3532. REQUIREMENTS FOR PROGRAM. addition to the items and services included in the 14 14 A State comprehensive managed mental health pro- 15 comprehensive benefits package under title I. 15 gram meets the requirements of this section if the 16 (2) The optimal methods of treatment for indi- 16 program- 17 17 viduals with long-term conditions. (1) promotes the development of integrated de- 18 (3) The capacity of alliance health plans to fur- 18 livery systems for the management of the mental 19 19 nish such treatment. health services provided under the comprehensive (4) The modifications that should be made in 20 20 benefit package; the items and services furnished by such health 21 21 (2) gives priority in providing assistance on be- 22 22 plans. half of low-income individuals who are adults with NO.237 P007 23 (5) The role of publicly-funded health providers 23 serious mental illness or children with severe emo- 24 24 in the integration of acute and long-term treatment. tional disturbance (in accordance with standards of 25 the Secretary promulgated under section 3533) Title III, Subtitle F Title III, Subtitle Q 566 567 1 (3) ensures that individuals participating in the 1 gram, the State shall submit a report to the Secretary con- 2 program have access to all medically necessary men- 2 taining the following information with respect to the year: 05/11/94 17:23 3 tal health services; and 3 (1) The management, access, and referral 4 (4) meets such other requirements as the Sec- 4 structure which the State uses under the program to 5 retary may impose. 5 promote and achieve integration of mental health 6 SEC. 3533. STANDARDS RELATING TO DETERMINATIONS OF 6 services provided to residents of the State. 7 INCOME AND SEVERITY OF ILLNESS. 7 (2) Detailed specifications of the methods used LMR 94017321 8 (a) IN GENERAL-The Secretary shall promulgate 8 by the State under the program to ensure that indi- 9 standards to be used by States to determine whether an 9 viduals receiving services under. the program have 10 individual is a low-income individual who is an adult with 10 access to all medically necessary and appropriate 11 a serious mental illness or a child with a severe emotional 11 mental health services. 12 disturbance for purposes of section 3532(2). 12 (3) The definition of an adult with a serious 13 (b) SEVERITY OF ILLNESS OR DISTURBANCE.— 13 mental illness and a child with a severe emotional 14 Under the standards promulgated pursuant to subsection 14 disturbance used by the State in determining the eli- 15 (a), the determination of whether an adult has a serious 15 gibility of individuals for services under the pro- 16 mental illness or a child has a severe emotional disturb- 16 gram. 17 ance shall be based on the individual's anticipated need 17 (4) A description of sources of funding used by 18 for services (as determined on the basis of the individual's 18 the State (other than the grant received under this 19 medical history or a prediction of future medical needs) 19 part) to operate the program during the year. 20 and on whether the individual is expected to need mental 20 SEC. 3535. AUTHORIZATION OF APPROPRIATIONS. 21 health services for a period of at least 1 year. 21 There are authorized to be appropriated for grants 22 SEC. 3534. REPORTING REQUIREMENTS. 22 under this part $100,000,000 for each of the fiscal years NO.237 P008 23 With respect to each year for which a State is receiv- 23 1996 through 2000. 24 ing a grant under this part for the establishment and op- 25 eration of a comprehensive managed mental health pro- F:\HSA\EDLABOR\SUB\UNSOEL.002 H.L.C. AMENDMENT To COMMITTEE PRINT (H.R. 3600) OFFERED By MRS. UNSOELD Page 72, line 16, strike "discretion." and insert "discretion, except that the plan shall offer smoking ces- sation classes to pregnant women enrolled in the plan.". May 4, 1994 MAY-13-1994 17:59 FROM ACTUARIAL RESEARCH TO 2024562878 P.01 Actuarial Research Corporation 6928 Little River Turnpike, Suite E Annandale, Virginia 22003 (703) 941-7400 FAX (703) 941-3951 Date: 5/13 Please Deliver Immediately To: Jennifer Klein From: Gordon Re: Memo: with Miller dental limited to one exam/year with radiographs ( but no prophylaxis) and: 30 % COINSURANCE $10 capayment / visit Average premium increase is 0.77% ( I.e. 2 little less than 1%). We are transmitting pages (including this transmittal sheet). Memo to Danny Weiss May 11, 1994 Page 2 Cost Estimate Information: Emergency Care Already in the Williams' Substitute Preventive and Diagnostic Care Limits: Costs (in Billions): Oral exams 1/yr $1,928 Radiographs 1/2yr BW* or 1/5yr FMS** 821 Sealants no adults Fluorides High Risk ONLY 328 Cleanings 1 @/yr 1,847 Treatment no restorative, prosthetics, orthodontics for adults Special Needs Patients: Orthodontics Severe Malocclusions ONLY for children age 6-12 Dentures Special needs patients ONLY 1.530 Medically Necessary Oral Patient population as defined Health Care in amendment TOTAL: $6.454 A study just prepared for Hay Huggrns (last * BW = Bite Wing Radiographs week) will show the ** FMS = Full Mouth Series special needs patient Costs to equal $1.558 B. The result is an increase in Cost of $28 Million largely due to rates. use of 65% utilization 05/13/94 15:04 202 225 5609 GEORGE MILLER 001/012 U.S. HOUSE OF FAX TRANSMISSION ALPRESENTATIVES FROM CONGRESSMAN GEORGE MILLER (D-CALIFORNIA) TO: Jennifer Klein / Jack Lew FR: Daniel Weiss TOTAL NUMBER OF PAGES INCLUDING THIS ONE: 12 DATE: 5/13/94 TIME: 3:30 pm MESSAGE: If you need the legislative language, let came know. Rep. George Miller, 2205 Rayburn Bldg., Washington, DC 20515 (202)225-2095 05/13/94 15:05 202 225 5609 GEORGE MILLER 002/012 May 13, 1994 TO: Daniel Weiss FROM: Marty Liggett SUBJECT: Dental Amendment Cost Estimates Coalition for Oral Health Per our conversation earlier today, here are the details underlying our estimates. The chart below summarizes the costs of medically necessary oral health care and special needs patients. Specific numbers and assumptions are 1625 Massachusetts Ave., NW, Suite 502 spelled out in detail in the attached letters from the Washington DC American Association of Hospital Dentists. Please note 20036-2212 that their estimates are comprised of two subtotals. Page 2 of this memo describes the proposed preventive benefits for adults (ages 18-64) included in the amendment, with detailed assumptions listed. Our amendment would never cover cast restorations (caps, gold crowns, bridge work), or cosmetic services. President Medically Necessary Oral Health Care John McFarland, Cost Projections Summary Sheet NNOHA Vice President Category # Patients Costs (in Hermine McLeran, AAPHD Millions) Treasurer Chemotherapy 174,556 $ 71 Nik Petrovic, Diabetes 809,200 349 ADTA Heart Defects 22,320 9 Secretary Hemophilia 11,560 4 Gene Bartlow, HIV 289,200 118 AADR Orphan Diseases 346,800 149 Radiation 14,450 6 Director Martha Liggett, Renal Dialysis 171,088 72 AADS Transplantation 13,838 5 Dev & Acq MXF Def* 17,480 46 Dev Disabilities 1,676,200 723 TOTAL PROJECTED ANNUAL COSTS: $1,552 * Dev & Acq MSF Def - Developmental and Acquired Maxillofacial Defects Phone: (202) 667-9433 Fax: (202) 667-0642 May 12, 1994 Pertinent data for Dental Amendment Description of Proposed Oral Health Benefits for Adults (18-64 years of age) Estimated utilization rate of 60 percent/1994 adjusted dental fees 05/13/94 Service Estimated Frequency/ Service Projected Cost/ Total First Year Target Year Modifier Utilization Unit Projected 15:05 Population Rate Cost (in Billions) Preventive and Diagnostic Care: Oral Exams 160,402,000 1 x/yr none 60% $20.03 1.928 Radiographs 153,649,076 1 x/2yr or 5yr none 60% 17.81 .821 Sealants NA NA NA NA NA NA 5609 225 20202 Fluorides 153,649,076 2 x/yr 10% 60% 17.81 .328 Cleanings 153,649,076 I x/yr 45% 60% 44.52 1.847 TOTAL: $ 4.924 ASSUMPTIONS: I. Targer population: There are two different population numbers used because there are 160 million adults ages 18 - 64, of whom 153 million have teeth; every one of the 160 million require oral exams, while only those with leeth get cleanings, x-rays, and fluoride treatments. 2. Frequency per year: This figure refers to limitations on the number of times per year the service will be provided. Most services are only covered annually. This is a more severe limitation than is coinonly seen in the private sector, where 2 exams and cleanings may be covered each year. Radiographs are subject to the following limitations: not more then one set of bitewing x-rays every 2 years or one full mouth series of x-rays (or panographic x-ray) every s years. GEORGE MILLER 3. Service modifier: A service modifier is an adjustment to reflect the need for doe service. Fluorides: An estimate of 10 percent. was used in the model to project the proportion of adults at increased risk of active dental disease and who would benefit from professionally applied fluoride treatments. The National Institute of Dental Research (NIDR) conducted a 1985.86 National Survey of Oral Health in U.S. Employed Adults and Seniors and reported that the decayed component (D) of caries scores (unrestored tooth surfaces) comprised approximately 8 percent in employed adults and 9 percent in seniors of the decayed and filled tooth soares (DFT). Cleanings. Approximately 89 percent of the adult population aged 18 and older is classified as dentate (with some teeth). The preportion of dentate adults requiring "oral prophylaxis" (cleanings) is estimated at 45 percent. The projection is based on data from the 1985-86 NIDR National Survey of Oral Health in U.S. Employed Adults and Seniors - 43.6 persent of employed adults (dentate) aged 18-64+ years were reported with gingiva bleeding in at least one site. 4. Utilization rate: National dental care utilization data (NHIS, 1989) reports an animal utilization rate of approximately 50% for adults. Because this amendment would bring preventive dental care to individuals currently without it, 8 significant number of those newly eligible for coverage will be low income adults. For these people. finances are not the only barrier to access, and their Wilization rates are significantly below the overall adult average. Adult utilization of Medicaid dental benefits, for example, averages 35%, as reported by the Department of Health Policy and Epidemiology, Harvard School of Dermal Medicine. A 60 percent utilization rate for busic services was used, which provides quite a large "custion". 4 003/012 5. Cost/unit: Cost estimates for individual clinical-based services are based on 1985 median fees (Sorb percentile of general proctitioner fees) from the most recent rehensive survey of dentists conducted by the American Dental Association and adjusted Ю 1994 dollars. 6. Only first year cost projections are given. The out years should be costed at the Consumer Price Index rate, using whatever assumptions are being applied to the bill generalty. Growth in the price of dental services continues to be lower than the CPI for physician and hospital services. The preventive services proposed are least subject to upward inflation. Thus are annual increase at the CPI rate should be used. 15:06 5609 225 20202 GEORGE MILLER 004/012 05/13/94 15:06 202 225 5609 GEORGE MILLER 005/012 - insuration of Hospital Dentists :1. ddll, you April 29, 1994 Mr. Mike Carter Hay Huggins Co, Inc. 1500 K st., N.W. Suite 1000 AAHD Washington, DC 20005 Dear Mr. Carter: on behalf of the American Association of Hospital Dentists, I would like to thank you for this opportunity to assist you in costing out a "medically necessary oral health care" add-on to Mr. Dingell's proposal. We currently define medically necessary oral health care as "a direct result of, or having direct impact on a medical condition". The provision of this care provides for elimination of infection, pain and reestablishment of function. Examples of various medical conditions which require adequate and appropriate medically necessary oral health care include diabetes, cancer, heart defects, hemophilia, HIV disease, organ transplantation, renal dialysis, congenital and heredity disorders and those diseases we consider orphan diseases such as sjogren's Syndrome. The enclosed cost-out for medically necessary oral health care includes the disease entities which I have mentioned above and defines the critical services that must be provided to effect optimal health outcomes. We have made a number of assumptions in the calculations which include: The total number of cases documented under each disease entity is the calculated total of individuals between 18 and 65. That is, we have made the assumption that those under 18 would be covered under the Health Security Act and those over 65 would be considered under any future proposed Medicare changes. Our calculation is based on 1990 census data. We have made the assumption that utilization for these services would be on the order of 65%. The Public Health Service currently estimates that utilization for the population at large currently is between 55% and 60%. The cost estimates and disease category definitions assume that this is an add-on to the existing Health Security Act. 05/13/94 15:06 6202 225 5609 GEORGE MILLER 006/012 Mr. Mike Carter April 29, 1994 Page Two The chemotherapy category is a "catch-all" for all those receiving chemotherapy including patients with leukemia. The patients in the HIV category include those on disease-related therapies, i.e., not including those who are asymptomatic. These patients will necessitate approximately two exams per year or more due to their suppressed immune status and continually changing oral health status. Under the orphan disease category we must note that Sjogren's Syndrome patients may have an increased need for cleanings and fluoride treatment. This population will require more regular and routine protection of their hard and soft tissues due to the nature of the disease process. The estimates for the developmental and acquired maxillofacial defects include patients with ectodermal dysplasia as well as those receiving surgical resection for head and neck cancers. This group is covered under the radiation and/or orphan disease categories for the Initial Workup and Treatment as well as the Primary Care Maintenance. However, this group does necessitate the additional services of functional restorations. Elimination of infection has been estimated by a non- random survey to approximate the cost of extracting six teeth. Clearly there are some individuals who present with no need for extractions and others who present for extraction of entire sets of teeth. This estimate is anecdotally accurate and appropriate. The Dental Fees used for the respective calculations were taken from the 1993 ADA Survey of Dental Fees with the exception of functional restorations for Developmental and Acquired Maxillofacial Defects. Frequencies were gathered from the Journal of Prosthetic Dentistry and the cost from personal communication. The restorative component under Primary Care Maintenance was calculated for cavities on the crown and root surfaces, respectively. The Public Health Service has estimated that a factor of 1.3 surfaces is restored on the crown in the general population and 0.4 surfaces restored on the root structure. The average restoration cost of $51.20 was used to compute the final cost. 05/13/94 15:07 202 225 5609 GEORGE MILLER 007/012 Mr. Mike Carter April 29, 1994 Page Three Fluoride treatment will apply only to patients at high risk for cavities. Therefore although we have assigned fluoride treatment to all medically compromised groups, most treatment will be limited to chemotherapy, HIV, orphan diseases, and radiation. There are special needs patient populations which include children with baby bottle syndrome and those with handicapping malocclusions which have not been included in this cost out. Baby bottle syndrome is assumed to be covered under the existing Health Security Act. However, handicapping malocclusions due to malformed Jaws is an issue and condition which should be addressed for adults as well as children. The reestablishment of function for these individuals is critical for their day-to-day existence. As a final note, we made some estimates on the potential cost of not providing the medically necessary dental care. For example it is estimated that between 10-15% (personal communication) of all patients undergoing head and neck radiation for malignancy will develop a condition called osteoradionecrosis without appropriate oral care. Osteoradionecrosis occurs when blood vessels in the path of the radiation beam become thicker causing impaired circulation to the jaw bone resulting in bone death. Individuals in poor dental health frequently develop osteoradionecrosis due to tooth and gum-related infections. In 20% of these cases, patients must undergo extensive and expensive hyperbaric oxygen therapy. This estimate alone is in excess of 60% higher than the total cost of care provided to the entire radiation patient population! Please feel free to contact me if you have any questions or comments concerning these figures. We feel our estimates are sound. Again, anecdotal evidence indicates that not providing the medically necessary oral health care can ultimately cost the system magnitudes higher in terms of adverse health outcomes and real dollars. Thank you very much for this opportunity. sincerely yours, DAS John 5. Rutkauskas, MS, DDS Executive Director JSR/bw CC: Ms. Dorothy Moss, ADA Washington office Mr. Craig Palmer, ADA Washington office Federation Board of Directors Medically Necessary Oral Realth Care 65% OR Chemotherapy Diabetes Heart Defects Memophilla HIV (174,556) (809,200) (21,320) (11,560) (289,200) Initial Workup and Treatment 05/13/84 15:07 a. Exam 3,971,149 18,409,300 507,700 262,990 6,579,300 b. Radiograph 5,105,763 23,669,100 652,860 338,130 8,459,100 c. Periodontal Scaling 7,601,914 35,240,660 972,036 503,438 12,594,660 to Reduce Inflammation d. Fluoride Treatment 1,701,921 7,889,700 217,620 112,710 2,819,700 e. Ellmination of 34,492,266 159,897,920 4,410,432 2,204,256 57,145,920 6202 225 5609 Infection Subtatal 52,871,019 245,106,600 6,760,728 3,501,524 87,598,680 Primary Care Naintenance a. Periodic 1,928,844 8,941,660 246,636 127,738 9,586,900 Exam 1x/yr b. Bitewings 1,015,382 6,415,680 232,128 120,224 3,007,680 1n/yc C. Prophylaxis 2x/yr 864,990 41,026,440 1,131,624 506,092 1,466,240 GEORGE MILLER d. Restorative I. Coronal Caries 11,618,447 35,009,228 965,653 500,132 12,511,940 II. Root Caries 2,323,664 10,772,070 297,124 153,887 3,849,830 Punctional Restoration Subtotal 18,571,347 104,165,078 2,873,165 1,688,073 30,422,670 Total 71,444,360 349,271,758 9,633,893 4,989,597 110,021,358 008/012 Medically Madessary Oral I Ith Care 65% OR Orphan Diseases Radiation Renal Transplantation Developmental (346,800) (14,450) Dialysis (13,838) and Acquired (171,008) Maxillofacial Defecta (17,480) Initial Norkup and Treatment ST:21 РЕБТ-ЕЙ-ЛЬШ 05/13/94 15:07 a. Exam 7,009,700 328,736 3,892,252 314,815 b. Radiograph 10,143,900 422,663 5,004,324 404,762 0. Periodental Scaling 15,103,140 629,290 7,450,802 602,645 to Reduce Inflammation d. Fluoride Treatment 3,381,300 140,088 166,811 134,921 20202 225 5609 e. Elimination of 60,527,680 2,855,320 11,806,988 2,734,369 Infection Subtotal 105,045,720 4,376,907 50,321,257 4,191,532 Primary Care Maintenance a. Periodic Exam In/yc 3,832,140 159,673 1,690,522 152,910 b. eltewings 1n/yr 3,606,720 150,280 1,779,315 143,915 C. Prophylawis 2n/yr 17,502,760 732,616 0,674,162 701,506 GEORGE MILLER d. Restorative I. Coronal Carles 15,003,955 625,165 7,401,951 598,607 II. Root Ceries 4,616,602 295,936 2,277,523 184,211 Functional Restoration 46,550,000 Subtotal 64,642,177 1,963,670 22,023,473 1,781,309 66,558,000 Total 149,687,897 6,340,577 73,344,730 5,972,841 46,558,000 1.00/00 } , 0099012 05/13/94 15:08 6202 225 5609 GEORGE MILLER 0 010/012 of Hospital genilsis Chicago, :! N)611 312.420 2019 May 4, 1994 Mr. Mike Carter Hay Huggins Co, Inc. 1500 K st., N.W. Suite 1000 Washington, DC 20005 Dear Mr. carter: It's been a pleasure to continue to work with you on the important issue of medically necessary oral health care. As I had mentioned to you over the phone, one population which we neglected to AAHD include is that of the profoundly and severely developmentally disabled. I have enclosed the spread sheet for this medical category. Please find below a sample calculation for the group of radiation patients. Radiation Therapy Patients Those receiving radiation therapy of the head and neck, including those with Hodgkins Disease - -- 25,000 per year for all ages. Approximately 57.8% of the population is in the 18-65 age group based on 1990 census data. 14,450 therefore would potentially be covered under the proposed plan. with a 65% utilization rate, approximately 9392.5 individuals would access services. Fees: these estimates are taken from the 1993 ADA survey of dental fees at the 50th percentile. The only exceptions are those for examinations under initial workup and treatment which were calculated at the 80th percentile due to the extensive nature of the exams and estimates for restorations which were calculated at $51.20 by the Public Health Service. a. Examination $ 35.00 x 9392.5 - $ 328,738 b. Radiograph $ 45.00 X 9392.5 = $ 422,663 C. Periodontal $ 67.00 X 9392.5 = $ 629,298 d. Fluoride Treatment $ 15.00 x 9392.5 = $ 140,888 8. Elimination of Infection $304.00 X 9392.5 - $2,855,320 $1,376,907 a. Periodic Exam $ 17.00 X 9392.5 - $ 159,673 b. Bitewings $ 16.00 X 9392.5 e $ 150,280 C. Prophylaxis ($ 39x2) X 9392.5 A $ 732,616 d. Restorative Coronal $ 51.20 X 9392.5 # $ 625,165 x 1.3 surfaces Root $51.20 X 9392.5 = $ 192,358 X 0.4 surfaces $1,860,092 Total $6,236,999 05/13/94 15:08 202 225 5609 GEORGE MILLER 011/012 Mr. Mike Carter May 4, 1994 Page Two cost of treatment for osteoradionecrosis as a result of not providing care: 10-15% of 14,450 will develop osteoradionecrosis due to inadequate oral care. Additionally, 20% of 1445 will necessitate hyperbaric oxygen therapy to treat the problem at a cost of $35,000 per case. 289 cases of hyperbaric oxygen therapy X $35,000 = $10,115,000 This is in excess of 50% of the $6,236,999 of total care provided to all radiation patients. Please let me know if there are any further questions. Sincerely, SA John S. Rutkauskas, MS, DDS Executive Director JSR/bw CC: Ms. Dorothy Moss, ADA Washington Office Mr. Craig Palmer, ADA Washington office Federation Board of Directors Medically Nacessary Oral Health Care 65% UR Developmental Disabilities (1,676,200) 05/13/84 Initial Markup and Treatment a. Exam 38,133,550 15:09 b. Radiograph 49,028,850 C. Periodontal Scaling to Reduce Inflammation 72,998,510 d. Fluoride Treatment 16,342,950 e. Elimination of Infection 331,217,120 Subtotal 507,753,980 6202 225 5609 Primary Care Maintenance a. Periodic Bwam 1M/YE 18,522,010 b. Bitewings 1x/yr 17,432,480 C. Prophylasla 2n/yr 84,983,340 d. Restorative GEORGE MILLER I. Coronal Caries 72,519,117 IT. Root Carles 22,313,574 Punctional Restoration Subtotal 215,770,521 Total 723,524,501 TOTAL P.04 012/012