Sunday, May 19, 2013

Cruz: Imposition of Fees at Mental Health Could Raise $9-$12 Million

Guam News - Guam News

Guam - Vice Speaker B.J. Cruz says that the imposition of fees for the services long provided by the Department of Mental Health [DMHSA] could raise as much as $12 million dollars for GovGuam.

In a release, Senator Cruz cites the following quote from the recently completed "Economic Impact Statement" on the proposed fee schedule for DMHSA:

“The Department estimates that these fees will raise approximately $9-12 million per year in revenue for the Department and greatly increase the level of care it can provide.” 

GovGuam currently pays about $14 million dollars a year to support the services of DMHSA. 

The release quotes Senator Cruz as saying, “The implementation of a fee schedule that will save taxpayers a significant amount of money is only a few signatures away. Every dollar saved will aid the government in cutting costs without cutting employee’s benefits or potentially jeopardizing the Retirement Fund.”

READ Vice-Speaker Cruz's April letter to the Governor HERE

READ the release from Senator Cruz below:

Cruz: Economic Impact Statement shows DMHSA Fee Schedule will save taxpayers 9 to12 million
For Immediate Release

(August 6, 2012- Hagatna) This Morning, Vice Speaker Benjamin J. F. Cruz received the Economic Impact Statement regarding the Proposed Fee Schedule from the Department of Mental Health and Substance Abuse (DMHSA). According to the statement;

“The Department estimates that these fees will raise approximately $9-12 million per year in revenue for the Department and greatly increase the level of care it can provide.”

Federal law requires Medical Insurance Providers, Medicare, and Medicaid to pay for mental health services. With the implementation of the fee schedule for services provided, DMHSA will now be able to charge these entities for services they provide therefore allowing the Department to depend less on the General Fund for funding for its operations.

“After months of meetings, discussions, and hard work by DMHSA, my Office, and many others,” stated Cruz.  “the implementation of a fee schedule that will save taxpayers a significant amount of money is only a few signatures away. Every dollar saved will aid the government in cutting costs without cutting employee’s benefits or potentially jeopardizing the Retirement Fund.”

This is the first fee schedule proposed by DMHSA since 1996 when the Mental Health Parity and Addiction Equity Act, or MHPAEA, requires private health insurance plans to provide equal coverage for mental and physical health services was passed by Congress.

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