Skip to main content

Medicare bill phases out higher co-pays for mental health

By Molly Merrill

The Senate approved a bill on Thursday that will phase out Medicare's higher co-pays for mental health services, bringing them in line with co-pays for physical healthcare services.

The Senate passed the Medicare legislation by a veto-proof 69-30 margin, after House approval on June 24 by a 355-59 vote.

In the past, Medicare has required 50 percent of a co-pay for mental health services, compared to 20 percent for other healthcare services.

The Medicare bill rescinds sharp cuts in Medicare payments to physicians to help ensure that seniors are not denied care due to inadequate reimbursement for their doctors.

In addition, it improves the Part D prescription drug benefit by limiting out-of-pockets costs for dual eligibles - individuals who are eligible for both the Medicare and Medicaid programs.

The bill includes provisions to ensure that mental health medications continue to be available to these vulnerable beneficiaries.

According to an "Administration on Aging 2001" report, it is estimated that half of all older adults with mental health problems receive treatment. Due to Medicare's cost barriers, expensive inpatient services are used more often than outpatient services to treat mental health conditions among the elderly.

"The National Council has advocated long and hard to end Medicare's discrimination against mental health," said Linda Rosenberg, president and CEO of the National Council. "Congress has taken a major step forward in ensuring better access to care for millions of America's senior citizens who experience debilitating mental illnesses but cannot afford the exorbitant co-pays for the screening and treatment they need."

National Council advocacy resulted in the inclusion of a provision in the Medicare bill to expand access to mental healthcare in rural America by making community mental health centers eligible to participate in the Medicare telehealth program.

"Telehealth helps to make mental health services available in remote areas where people have little or no access to specialty care of any sort," said Charles Ingoglia, vice president of public policy at the National Council. "The new Medicare provisions will make an important contribution to expanding mental healthcare in America."