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Skip to Main Content POLITICO POLITICO LOGO * Congress * Pro * E&E News * Search Search WASHINGTON & POLITICS * Congress * White House * Elections * Legal * Magazine * Foreign Affairs 2024 ELECTIONS * News * Results * GOP Candidate Tracker STATE POLITICS & POLICY * California * Florida * New Jersey * New York GLOBAL POLITICS & POLICY * Brussels * Canada * United Kingdom POLICY NEWS * Agriculture * Cannabis * Cybersecurity * Defense * Education * Energy & Environment * Finance & Tax * Health Care * Immigration * Labor * Sustainability * Technology * Trade * Transportation NEWSLETTERS * Playbook * Playbook PM * West Wing Playbook * POLITICO Nightly * POLITICO Weekend * The Recast * Huddle * All Newsletters COLUMNISTS * Alex Burns * John Harris * Jonathan Martin * Michael Schaffer * Jack Shafer * Rich Lowry SERIES & MORE * Breaking News Alerts * Podcasts * Video * The Fifty * Women Rule * Matt Wuerker Cartoons * Cartoon Carousel POLITICO LIVE * Upcoming Events * Previous Events FOLLOW US * Twitter * Instagram * Facebook * My Account * Log In Log Out Health Care MENTAL HOSPITALS WAREHOUSED THE SICK. CONGRESS WANTS TO LET THEM TRY AGAIN. Lawmakers are on the verge of allowing Medicaid to cover substance use treatment in the facilities. Homeless people and their belongings on a San Francisco street in November. | Jason Henry/AFP via Getty Images By Carmen Paun 01/01/2024 07:00 AM EST * * * * Link Copied * * * * The linked crises of drug addiction and homelessness have Washington on the verge of embracing a health care provider it once repudiated: the mental hospital. Nearly 60 years after Congress barred Medicaid from treating people in what were then derided as insane asylums, lawmakers are on the verge of reversing course. The reasons: Community-based care championed since the 1960s hasn’t stopped record overdoses — and constituents have had it with the brazen drug use and tent encampments in their cities. Some public health advocates agree that times have changed and the magnitude of the crises justifies lifting the rule. “It is no longer the 1960s, and there is no longer the same stigma against the treatment of mental health,” said GOP Rep. Michael Burgess, a doctor representing Dallas’ affluent northern suburbs who sponsored a House bill to change the rule. The House passed it Dec. 12. It would give states the option to treat Medicaid patients suffering from addiction for up to a month in a mental hospital on the government’s dime. The Senate Finance Committee approved a similar provision in November, so its prospects of enactment are good. Burgess’ co-sponsor was Ritchie Torres, a Democrat from New York City’s poorest section, the South Bronx, who has spent time in the hospital for his own mental health struggles. Public health groups including the Treatment Advocacy Center and the National Alliance on Mental Illness, as well as state Medicaid directors, support the change. They say the 1965 rule barring Medicaid, the federal-state health care program for the poor and lower-middle income, from funding hospital treatment has had unintended consequences: a lack of psychiatric beds for people who need them. Instead, they said, many vulnerable people end up on the streets, in emergency rooms, in jails or dead. They say the policy also perpetuates discrimination against people who suffer from drug addiction and mental illness compared to those with physical conditions, for which there’s no such exclusion. Republicans in Congress agree. Democrats are divided. New Jersey Rep. Frank Pallone, the top Democrat on the Energy and Commerce Committee that shepherded the bill, resisted the change, wary of a return to institutionalizing people with mental illness instead of caring for them in their homes, ideally, with a team of specialized health and social workers. “We know that one of the best ways to help people in recovery is to ensure they have access to care in their communities,” he said. Pallone ultimately relented because Republicans agreed to improve Medicaid coverage for some incarcerated people with substance use disorder. A police car leaves a psychiatric hospital in Washington in September 2016. | Preston Keres/AFP via Getty Images But fears of reinstitutionalization have also animated civil rights advocates who support the restriction on Medicaid funds. They fear a slippery slope back to warehousing the sick and point to states like California and New York that are already experimenting with forcing patients into care. Lifting the Medicaid rule would reduce pressure to do what’s really needed, said Lewis Bossing, senior staff attorney at the Bazelon Center for Mental Health Law: increase services in communities. “People have better outcomes in terms of reduced hospitalization rates, reduced criminal legal system involvement, increased employment, increased measures of social integration when they’re served in the community, … versus having to be at an institution to get care,” he said. THE RISE AND FALL OF THE MENTAL HOSPITAL States started building mental health hospitals in the 1800s, aiming to provide people with severe mental illness with care instead of throwing them in jail. But the hospitals soon became overcrowded, understaffed and underfinanced. Abuse was rife, according to an investigation published in Life Magazine in 1946: Patients were restrained for days, thrown into solitary confinement, starved and sometimes beaten to death. More than half a million people were in state mental health hospitals in 1963, half of them in facilities housing more than 3,000 people, President John F. Kennedy said in a speech that year. Kennedy laid out a plan for states to build comprehensive community mental health centers, with federal support. They would combine diagnostic services, emergency psychiatric units, inpatient and outpatient services and rehabilitation. The law establishing Medicaid two years later prohibited federal money from paying for care in mental health care facilities with more than 16 beds to avoid pouring money into what Kennedy called outdated institutional care. The rule now covers people between 21 and 64 years old. Many state hospitals closed but the community mental health system, as Kennedy envisioned it, never came to fruition, advocates on both sides of the debate say. Those who don’t want the Medicaid funding ban repealed would like states and the federal government to focus on building that system, while those who want to see the policy gone say both community and hospital care are needed to provide people with what they need, depending on their circumstances. A person diagnosed with mental illness and substance use disorder needs inpatient care for doctors to stabilize them, argued Sen. Bill Cassidy (R-La.), a gastroenterologist and top member of the two committees with power over the policy. “The people who were so opposed to this because they still want to do it in an outpatient [facility], you wonder if they’ve ever actually lived with somebody who is seriously psychotic,” Cassidy said. Advocates argue that repealing the Medicaid policy is needed to provide people with the best treatment options. | Olivier Douliery/AFP via Getty Images Over the last decade, the Centers for Medicare and Medicaid Services has started allowing states to use federal dollars to pay for care in mental health hospitals for a limited time, as long as they obtain a waiver. Thirty-six states now have a waiver to treat people with substance use disorder and a dozen states have a waiver for treating other mental illnesses in psychiatric hospitals. MOST READ 1. WHITE HOUSE TRIES TO FLIP THE SCRIPT ON HOUSE REPUBLICANS OVER BORDER CRISIS 2. WE SAT DOWN WITH THE CONSERVATIVE MASTERMIND BEHIND CLAUDINE GAY’S OUSTER 3. BIDEN CAMPAIGN STAFF ISSUE ANONYMOUS LETTER PROTESTING APPROACH TO ISRAEL-HAMAS WAR 4. HARVARD AGITATORS TURN THEIR IRE TOWARD PENNY PRITZKER 5. THE GOP’S MOST TRUMP-SKEPTICAL BLOC STARTS FALLING IN LINE California found that its waiver to provide medication-assisted treatment for people with substance use disorder in mental hospitals helped individuals “who need a relatively intensive level of care for short-term stabilization of acute needs,” said Ann Carroll, the California Department of Health Care Services’ spokesperson. Even so, the system as it stands is failing to provide state-of-the-art care to many patients. One-third of the 1.5 million Medicaid enrollees with opioid use disorder, for example, did not receive medication treatment in 2021, according to the HHS inspector general. The 2018 SUPPORT Act, a landmark law meant to provide prevention, treatment and recovery for people with opioid addiction, gave states a new, albeit temporary, choice to provide care in psychiatric hospitals for up to a month without having to obtain a waiver. That option, which only South Dakota and Tennessee have taken, expired in September. The SUPPORT Act reauthorization bill the House passed in mid-December would reup the option and make it permanent. Pallone argued at a House Energy and Commerce hearing this summer that the low uptake showed that the waivers were sufficient. But Burgess and other Republicans said the waivers were burdensome and that making the option permanent would incentivize more states to use it. The Senate Finance Committee also voted in November to make the option permanent. Sen. Maggie Hassan (D-N.H.), who introduced the legislation with Republican Sens. John Thune of South Dakota and Marsha Blackburn of Tennessee, emphasized the 30-day limit and the requirement to provide medication. She described medication treatment — using drugs like buprenorphine to wean patients off stronger opioids — as “the gold standard for treating addiction.” It’s a rare issue on which Republicans aren’t at odds with the public health establishment. A repeal of the funding ban wouldn’t mean a return to the 1965 mental health care model “because that is just not where the system is today, that’s not where the clinical understanding is today and that’s not where any of the conversation is today,” said Jack Rollins, the director of federal policy at the National Association of Medicaid Directors. FORCED CARE AND THE SLIPPERY SLOPE But there’s still a powerful perception among many in the public that mental hospitals are akin to prisons and that opening the door to voluntary care will lead to forced treatment. When some people think of mental hospitals, they see the one in “One Flew Over the Cuckoo’s Nest,” the 1962 novel by Ken Kesey, or its 1975 film adaptation in which Jack Nicholson played a patient who was saner than the nurse caring for him. “A faulty assumption is that [mental health institutions] are like therapeutic settings. We know there’s a history in this country of institutions not being particularly therapeutic places,” Bazelon Center for Mental Health Law’s Bossing said. He pointed to reports in recent years from Washington’s disability rights watchdog alleging abuse and neglect at one public and one private mental health hospital in the capital. Representatives of the institutions said they were investigating the accusations and would make changes if necessary. In 2021, Virginia announced and quickly reversed a decision to close five of the state’s eight psychiatric hospitals to new admissions due to overcrowding and understaffing. And reinstitutionalization, albeit on a small scale, is happening. New York has sent about 130 people per week, involuntarily, to hospitals for psychiatric evaluation since May as part of a plan by Mayor Eric Adams to treat people who are unable to meet their basic needs. On the other side of the country, California Gov. Gavin Newsom has included ways to compel people into care in his mental health system overhaul. In March, Californians will decide on a $6.4 billion bond proposal Newsom has pitched to build nearly 25,000 psychiatric and addiction beds. Representatives of community mental health organizations in California plan to oppose the changes. In New York City, a group of civil rights lawyers filed a class-action suit against Adams’ directive and want more data on its implementation to see whether it’s disproportionately affecting people of color. Opponents of New York City Mayor Eric Adams' plan to involuntarily send mentally ill homeless people to psychiatric hospitals protest in front of City Hall in December 2022. | Spencer Platt/Getty Images WEIGHING THE POLITICS Still, Newsom and Adams are reacting to growing public and political pressure caused by a massive crisis of homelessness and drug addiction. Drug use spiked during the Covid pandemic, as evidenced by the record levels of fatal overdoses — now more than 100,000 a year. Homelessness rose by 12 percent between 2022 and 2023 nationwide as rents surged and pandemic-era aid ended. More than 650,000 people were experiencing homelessness on a single night in January 2023, according to the Department of Housing and Urban Development. California is home to the most unhoused people of any state — some 181,000 people — followed by New York, with some 103,000. Politicians fear open-air drug markets and tent encampments in their cities could hurt them at election time. And they’re increasingly confident that caring for more of those suffering on the streets in mental hospitals won’t become a similar political liability. “It doesn’t have to become a warehouse, you know, ‘One Flew Over a Cuckoo’s Nest’. Absolutely not. That’s wrong, it should not happen,” Cassidy said. * Filed under: * Congress, * Mental Health, * Frank Pallone, * Marsha Blackburn, * John Thune, * Gavin Newsom, * Maggie Hassan, * Bill Cassidy, * Michael Burgess, * Drug Addiction, * Homelessness, * Ritchie Torres, * Eric Adams POLITICO * * * * Link Copied * * * * PLAYBOOK The unofficial guide to official Washington, every morning and weekday afternoons. Playbook The unofficial guide to official Washington, every morning and weekday afternoons. By signing up, you acknowledge and agree to our Privacy Policy and Terms of Service. You may unsubscribe at any time by following the directions at the bottom of the email or by contacting us here. 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View Illustrations * MEASURE ADVERTISING PERFORMANCE 672 PARTNERS CAN USE THIS PURPOSE Switch Label Information regarding which advertising is presented to you and how you interact with it can be used to determine how well an advert has worked for you or other users and whether the goals of the advertising were reached. For instance, whether you saw an ad, whether you clicked on it, whether it led you to buy a product or visit a website, etc. This is very helpful to understand the relevance of advertising campaigns. View Illustrations Object to Legitimate Interests Remove Objection * MEASURE CONTENT PERFORMANCE 342 PARTNERS CAN USE THIS PURPOSE Switch Label Information regarding which content is presented to you and how you interact with it can be used to determine whether the (non-advertising) content e.g. reached its intended audience and matched your interests. 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View Illustrations Object to Legitimate Interests Remove Objection * DEVELOP AND IMPROVE SERVICES 506 PARTNERS CAN USE THIS PURPOSE Switch Label Information about your activity on this service, such as your interaction with ads or content, can be very helpful to improve products and services and to build new products and services based on user interactions, the type of audience, etc. This specific purpose does not include the development or improvement of user profiles and identifiers. View Illustrations Object to Legitimate Interests Remove Objection * USE LIMITED DATA TO SELECT CONTENT 109 PARTNERS CAN USE THIS PURPOSE Switch Label Content presented to you on this service can be based on limited data, such as the website or app you are using, your non-precise location, your device type, or which content you are (or have been) interacting with (for example, to limit the number of times a video or an article is presented to you). View Illustrations Object to Legitimate Interests Remove Objection List of IAB Vendors USE PRECISE GEOLOCATION DATA 250 PARTNERS CAN USE THIS PURPOSE Use precise geolocation data With your acceptance, your precise location (within a radius of less than 500 metres) may be used in support of the purposes explained in this notice. List of IAB Vendors ACTIVELY SCAN DEVICE CHARACTERISTICS FOR IDENTIFICATION 119 PARTNERS CAN USE THIS PURPOSE Actively scan device characteristics for identification With your acceptance, certain characteristics specific to your device might be requested and used to distinguish it from other devices (such as the installed fonts or plugins, the resolution of your screen) in support of the purposes explained in this notice. List of IAB Vendors ENSURE SECURITY, PREVENT AND DETECT FRAUD, AND FIX ERRORS 485 PARTNERS CAN USE THIS PURPOSE Always Active Your data can be used to monitor for and prevent unusual and possibly fraudulent activity (for example, regarding advertising, ad clicks by bots), and ensure systems and processes work properly and securely. It can also be used to correct any problems you, the publisher or the advertiser may encounter in the delivery of content and ads and in your interaction with them. List of IAB Vendors | View Illustrations DELIVER AND PRESENT ADVERTISING AND CONTENT 477 PARTNERS CAN USE THIS PURPOSE Always Active Certain information (like an IP address or device capabilities) is used to ensure the technical compatibility of the content or advertising, and to facilitate the transmission of the content or ad to your device. List of IAB Vendors | View Illustrations MATCH AND COMBINE DATA FROM OTHER DATA SOURCES 327 PARTNERS CAN USE THIS PURPOSE Always Active Information about your activity on this service may be matched and combined with other information relating to you and originating from various sources (for instance your activity on a separate online service, your use of a loyalty card in-store, or your answers to a survey), in support of the purposes explained in this notice. List of IAB Vendors LINK DIFFERENT DEVICES 313 PARTNERS CAN USE THIS PURPOSE Always Active In support of the purposes explained in this notice, your device might be considered as likely linked to other devices that belong to you or your household (for instance because you are logged in to the same service on both your phone and your computer, or because you may use the same Internet connection on both devices). List of IAB Vendors IDENTIFY DEVICES BASED ON INFORMATION TRANSMITTED AUTOMATICALLY 453 PARTNERS CAN USE THIS PURPOSE Always Active Your device might be distinguished from other devices based on information it automatically sends when accessing the Internet (for instance, the IP address of your Internet connection or the type of browser you are using) in support of the purposes exposed in this notice. List of IAB Vendors Back Button COOKIE LIST Filter Button Consent Leg.Interest checkbox label label checkbox label label checkbox label label Clear checkbox label label Apply Cancel Confirm My Choices Allow All