NAMI North Carolina
309 W. Millbrook Rd. Suite 121, Raleigh, NC 27609*919/788-0801
Heard in the Halls
Heard in the Halls is an email service of NAMI North Carolina to provide updates on state legislative and policy issues. Heard in the Halls is produced for community advocates at least monthly and more frequently during sessions of the General Assembly. To be added to the Heard in the Halls list send a message to
heard@naminc.org with just "subscribe" (no quotes) in the subject. Because of the variety of e-mail servers, Heard in the Halls is sent in plain text and as a formatted attachment.
February 25, 2002
ACTION ALERT - RESPOND TODAY
MEDICAID CRISIS, URGENT ALERT
Background
The state budget crisis is reaching unprecedented levels not only for the current fiscal year, but for the next fiscal year as well. While much of the problem is due to severely declining revenues, it is made worse by a state Medicaid budget that is exploding. For the current fiscal year (2002) Medicaid expenditures are expected to be over-budget by $76 million. By 2003 Medicaid is expected to be over-budget by nearly $250 million.
The reason for the dramatic increase in Medicaid expenditures is the significant increase in the number of people receiving Medicaid. In just one year, an additional 70,000 individuals were added to the roles. One in eight North Carolinians, and one in five children, is now enrolled in Medicaid. The recession has hit North Carolina very hard.
The state can control Medicaid growth in only two ways: 1) lower reimbursement rates, and 2) decrease the utilization of services. The state already has implemented rate reductions for some providers, placed limits on some services, and increased co-payments and dispensing fees for brand name drugs. These measures are not nearly enough. To respond to the huge Medicaid deficit the state is now seriously considering the elimination or reduction of services and/or populations of people the federal government considers "optional". Among the optional services are Mental Health, Prescription Drugs, Personal Care Services, and Intermediate Care Facilities for the Mentally Retarded. In fact, these four services are the largest, in terms of claims paid, of all of the optional services. Included in the optional population categories are disabled individuals not receiving SSI and those at the 100% federal poverty level. Many individuals who receive and require MH/DD/SA services fall within these categories.
While taking these drastic steps may help balance the budget, they will decimate the lives of people who are not "optional" and who depend on services provided by Medicaid. A significant withdrawal of Medicaid funding for Mental Health services, prescription drugs, ICF/MR and personal care services would decimate the already fragile service system.
WHAT CAN WE DO?!
Besides eliminating services and populations of eligible people, there are two other options:
The General Assembly could raise taxes to cover the short fall,The federal government could provide assistance. Many states are facing the same situation North Carolina is facing. There is a proposal in Congress to increase the Medicaid reimbursement to all states by 1.5% and an additional 1.5% to states experiencing a serious economic downturn. North Carolina certainly fits both criteria. While this assistance wouldn’t totally solve the Medicaid budget deficit, it would dramatically ease the crisis.
ACTION ALERT - ACT TODAY
Washington has been slow to act on the proposal to help the states. We need to push the North Carolina Congressional delegation NOW to support greater federal Medicaid assistance to the states.
Talking Points
The economic downturn has hit North Carolina hard. One in eight North Carolinians and one in five children now receive Medicaid assistanceWithout increased federal assistance the state will be forced to make dramatic cuts to Medicaid services to people who need these services to live, these services are not "optional" to them. (If you have a personal story to tell, please share it).
Support increased federal assistance to the state and urge the Congressional leadership to take action.
WHO TO CONTACT
The North Carolina Congressional Delegation – contact your congressperson, both senators, and Rep. Richard Burr who is a key member on this issue because of committee assignment. Go to
www.cpdmi.org and click on the Link to Capitol Advantage Legislative site for an easy way to send a message.NORTH CAROLINA CONGRESSIONAL DELEGATION
Senator Jesse Helms (R)
403 Dirkson Senate Office Building
Washington, DC 20510
202/224-6342 phone
202/228-1339 fax
Senator John Edwards (D)
225 Dirksen Senate Office Building
Washington, DC 20510
202/224-3154 phone
202/228-1374 fax
Rep. Eva Clayton (D-1st)
2440 Rayburn House Office Building
Washington, DC 20515
202/225-3101 phone
202/225-3354 fax
Rep. Bob Etheridge (D-2nd)
1641 Longworth House Office Building
Washington, DC 20515
202/225-4531 phone
202/225-5662 fax
Rep. Walter B. Jones, Jr. (R-3rd)
422 Cannon House Office Building
Washington, DC 20515
202/225-3415 phone
202/225-3286 fax
Rep. David E. Price (D-4th)
2162 Rayburn House Office Building
Washington, DC 20515
202/225-1784 phone
202/225-2014 fax
Rep. Richard M. Burr (R-5th)
1513 Longworth House Office Building
Washington, DC 20515
202/225-2071 phone
202/225-2995 fax
Rep. Howard Coble (R-6th)
2468 Rayburn House Office Building
Washington, DC 20515
202/225-3065 phone
202/225-8611 fax
Rep. Mike McIntyre (D-7th)
1605 Longworth House Office Building
Washington, DC 20515
202/225-2731 phone
202/225-5773 fax
Rep. Robin Hayes (R-8th)
130 Cannon House Office Building
Washington, DC 20515
202/225-3715 phone
202/225-4036 fax
Rep. Cass Ballenger(R-10th)
2182 Rayburn House Office Building
Washington, DC 20515
202/225-2576 phone
202/225-0316 fax
Rep. Charles H. Taylor (R-11th)
231 Cannon House Office Building
Washington, DC 20515
202/225-6401 phone
202/226-6405 fax
Rep. Sue Myrick (R-9th)
230 Cannon House Office Building
Washington, DC 20515
202/225-1976 phone
202/225-3389 fax
Rep. Melvin L. Watt (D-12th)
1230 Longworth House Office Building
Washington, DC 20515
202/225-1510 phone
202/225-1512 fax