Matters of Fact - KENTUCKY

Access to Treatment for Mental Illness in Medicaid

Over 100 thousand of Kentucky’s four million sixty-five thousand residents have a severe mental illness. (U.S. Census 2000; U.S. Center for Mental Health Services)

In the year 2000, the estimated number of people age 18 or older with a serious mental disorder living in Kentucky (excluding homeless people or people in institutions) was nearly 75,000 (SAMHSA National Mental Health Information Center)

In the year 2000, the estimated number of children and adolescents with a serious mental disorder in the U.S. was 1,866,112, or over 35,000 children in Kentucky. An estimated 17.6 percent of those affected live in poverty. (SAMHSA National Mental Health Information Center)

Despite increased need and an eroding system of care for people with mental illness in Kentucky, the state plans to reduce the budget for mental health by 2.5% in FY '05 and another 2.5% in FY '06.

Every week in Kentucky there are 10 people who lose their lives to untreated mental illness (suicide) resulting in a loss of life for over 500 Kentuckians per year.

Prior authorization programs for people in Medicaid are a dangerous proposition for persons with mental illness. Prior authorization programs for people with mental illness have the potential to further erode a very tenuous community system of care. (NAMI Policy Research Institute, State Action Alert, April 2003)

Untreated mental disorders cost the U.S. economy and business more than $70 billion annually to lost productivity. (U.S. Surgeon General)

In fiscal year 2001, the average value of increased business activity generated from Kentucky’s one billion in Medicaid spending was $4.8 billion, or a rate of return per dollar invested in Medicaid of over $4.70. ("Medicaid: Good Medicine for State Economics", Families USA, January 2003)

As a result of every dollar saved by reducing the budget on medication for patients in Medicaid with Schizophrenia, $17 was spent on emergency services to those patients as a consequence. (New Hampshire)
Forcing people with mental illnesses to switch to cheaper medications cost the state $6,000 to $8,000 additional dollars per patient due to increased hospitalizations. (California)
Restricting access to medications through drug formularies increased Louisiana’s Medicaid cost by 4.1 percent. (Louisiana)