On April 21, the Kaiser Family Foundation published a brief outlining policy options for addressing the needs of individuals with mental illnesses through Medicaid under the national health care reform law.  Noting that the law will result in a large expansion of Medicaid coverage, the authors assert that states have important decisions regarding benefits, service delivery, outreach, and enrollment in order to meet the needs of individuals with mental illnesses.  The authors outline proposals to ensure that the meets of this population are addressed as states expand their Medicaid programs.

From the report: 

The Patient Protection and Affordable Care Act (ACA) aims to expand access to affordable health coverage and reduce the number of uninsured Americans. A primary pathway through which many Americans will gain access to healthcare is through the expansion of Medicaid eligibility to all individuals with incomes up to 133% of the federal poverty level ($14,484 for an individual in 2011). The newly eligible Medicaid population includes many people with mental health needs. Approximately one in six currently uninsured low-income adults (those with incomes below 133% of the federal poverty level) has a severe mental health disorder and many others have mental health service needs for less severe mental disorders.  Because those with a mental health disorder are more likely to have low incomes, Medicaid will be the primary source of coverage for individuals with mental illness who gain insurance under ACA.  Policymakers implementing the ACA face several crucial decisions in effectively designing benefits, service delivery, and outreach and enrollment programs to meet the needs of newly-eligible adults with mental health disorders.

Full report: Medicaid Policy Options for Meeting the Needs of Adults with Mental Illness Under the Affordable Care Act (PDF | 446.79 KB)

Kaiser Family Foundation.  (2011).  Medicaid policy options for meeting the needs of adults with mental illness under the Affordable Care Act.