Paulsen, Franken Lead MN Congressional Delegation in Urging Federal Agency to Protect Mental Health Funding for MN Children

Press Release

Congressman Erik Paulsen (MN-03) and Senator Al Franken (MN) have asked the agency in charge of administering Medicaid to ensure that federal funding for mental health services for Minnesota children is not discontinued. In a letter to the Centers for Medicare and Medicaid Services (CMS), members of the state delegation asked the agency to allow the Minnesota Department of Health and Human Services to maintain current practices for mental health care that were approved in 2001. A recent letter from CMS regarding state compliance with federal regulations for psychiatric residential treatment facilities (PRTFs) raised concerns that federal funding could be ended immediately.

The letter to CMS, which was also signed by Sen. Amy Klobuchar (MN), Rep. Tim Walz (MN-01), Rep. John Kline (MN-02), Rep. Betty McCollum (MN-04), Rep. Keith Ellison (MN-05), Rep. Tom Emmer (MN-06), Rep. Collin Peterson (MN-07), and Rep. Rick Nolan (MN-08), states:

"The recent letter from CMS raises the concern that Federal Financial Participation (FFP) could be immediately cut off, leaving children in need of services with few options. Minnesota has had an effective array and continuum of care and services for children with mental illnesses for over a decade. These services have been developed over many years to effectively meet the individual and unique needs of children, adolescents and their families in the state.

"We respectfully request that Minnesota be allowed to maintain its current practice of funding mental health services as was approved in 2001."

Background

When the Medicaid program was established in 1965, federal payments were excluded for Institutions for Mental Diseases (IMD) defined as facilities with over 16 beds. However, in 1972, an exception to the IMD exclusion was established for individuals under the age of 21 in certain larger settings, including psychiatric residential treatment facilities.

The Secretary of Health and Human Services has the authority to determine what large, "other settings" are allowed under the inpatient service benefit.

In 2001, Minnesota, in consultation with CMS, designed a rehabilitation model that fell under the other setting option. This model allows for any medical service that has been recommended by a physician or other licensed practitioner for maximum reduction of a disability to be provided in a residential treatment center.

Despite approving the state plan in 2001, CMS recently sent a letter to the Minnesota Department of Health and Human Services expressing concerns about the use of federal Medicaid dollars for treatment services provided to children in residential treatment centers under the rehab option. The letter implies that federal funding could be at risk.