March 30, 2016
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HHS: 2 million with behavioral health issues live in states without Medicaid expansion

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States would be able to significantly improve access to behavioral and mental health care for residents by expanding their Medicaid coverage under the Affordable Care Act, according to a report released this week by HHS.

Drawing from data collected in 2014, the HHS report indicates that an estimated 1.9 million uninsured Americans with a mental illness or substance abuse disorder live in a state that has not expanded its Medicaid coverage. Those people, according to HHS, would qualify for Medicaid coverage if their states elected to implement the expansion under the Affordable Care Act (ACA).

“Today’s report shows that Medicaid expansion is an important step states can take to address behavioral health needs,” HHS Secretary Sylvia M. Burwell said in a press release.

According to the report, those with behavioral health issues make up nearly 30% of all low-income uninsured individuals in the 20 states that have not expanded Medicaid coverage. The HHS noted that although “some of those individuals had access to some source of health insurance in 2014, many will gain access to coverage only if their states expand Medicaid, and others would gain access to more affordable coverage.”

In addition, the HHS pointed to previous White House estimates warning that if holdout states do not expand Medicaid coverage, more than 4 million of their residents will be left without coverage this year.

According to HHS, if all states were to complete their Medicaid expansion, “an estimated 371,000 fewer individuals would experience depression each year, and 540,000 more people would report being in good or excellent health,” due to more low-income adults with mental illness having access to care.

Under the ACA, states can expand their Medicaid coverage to residents with family incomes of up to 138% of the federal poverty level. The cost of expansion is subsidized by federal funds, at 100% in 2016, 95% in 2017, and then scaling down to 90% in 2020 and beyond, according to HHS. – by Jason Laday

Additional reading:

https://aspe.hhs.gov/pdf-report/benefits-medicaid-expansion-behavioral-health

http://www.hhs.gov/about/news/2016/03/28/new-report-shows-medicaid-expansion-can-improve-behavioral-health-care-access.html