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Trends And Issues In Child And Adolescent Mental HealthPROLOGUE: Addressing the needs of children and adolescents with mental illness is a major challenge for health care policymakers in the new century. The scope of the problem is staggering. An estimated 20 percent of American children have emotional disorders, while mental health servicerelated expenditures topped $11.75 billion in 1998 alone. And, lest the severity of the impact of mental illness on the young be underestimated, the National Advisory Mental Health Councils workgroup on child and adolescent mental health has pointedly asserted that "no other illnesses damage so many children so seriously." Sadly, despite the obvious magnitude and urgency of the demand, development of a comprehensive, coordinated approach to meeting the needs of such children remains elusive. The Subcommittee on Children and Family of the Presidents New Freedom Commission on Mental Health has noted that while young people with emotional problems come in contact "with more than one specialized service system, including mental health, special education, child welfare, juvenile justice, substance abuse, and health...no agency or system is clearly responsible or accountable for them." However, amid such dour realities, reason for optimism exists in notable progress that has been achieved over the past decade in the delivery and financing of mental health services for children. In the paper that follows, Sherry Glied and Allison Evans Cuellar report, among other things, on reductions in the out-of-pocket burden borne by families for childrens mental health care. Moreover, more children have access to effective treatment, as the "evidence base" for making care decisions has steadily improved. Despite such advancements, though, Glied and Cuellar are quick to note the need for the allocation of greater resources toward formulation and identification of evidence-based community treatment models geared toward seriously ill children that are readily applicable to "existing service systems." Glied, a professor and department chair in the Mailman School of Public Health at Columbia University, served on the Presidents Council of Economic Advisers under George H.W. Bush and Bill Clinton and is a member of the John D. and Catherine T. MacArthur Foundations network on mental health policy. Cuellar is an assistant professor at the Mailman School of Public Health.
An estimated 11 percent of American children have a mental health impairment, yet they rely upon a piece of the health care system that does not work well. Government policies for childrens mental health operate in two ways: by affecting health insurance for children, and by funding services directly. Major changes within both categories have shaped the types, sources, and financing of services for children with mental health problems. These policies, along with scientific advances in child mental health, social changes, and health policy more generally, have contributed to an improvement in child mental health services over the past fifteen years.
An estimated 11 percent of American children and adolescents have a diagnosable mental health condition that causes significant functional impairment.1 These youths constitute a uniquely vulnerable population. Their problems make it difficult for them to succeed at school and live happily in their families and communities, and they place the children at heightened risk of involvement with the justice system.2 For many of these children, mental health problems add to existing social risk factors. Mental health problems are two to four times as prevalent among children in poverty, those in the child welfare system, and those in the juvenile justice system.3 Children with mental health problems rely upon a piece of the health care system that does not work well. Many of these children receive no care at all, and many of those who do receive services are never seen by the health care system but receive care through schools (the principal provider of services to children with emotional disorders), child welfare agencies, or the juvenile justice system.4 In contrast, children with serious mental health problems who do use services often report involvement with multiple agencies and sources. One study found that 92 percent of children with serious emotional disturbances received mental health services from two or more systems, and 19 percent, from four or more.5 This multiplicity of services is associated with poor coordination, duplication, and service redundancy. Thus, child mental health policy has the dual objectives of improving access to services and reorganizing those services that are delivered. Government policies for childrens mental health operate in two ways. One set of policies affects health insurance for children, allowing them to pay for services received in the medical and specialty mental health sectors. Policies in this group include expansions of insurance coverage, such as the State Childrens Health Insurance Program (SCHIP), implementation of managed behavioral health care in the public and private sectors, and efforts to obtain parity of mental health benefits with those for general health care. A second set of policies directly funds mental health services for children. The most important policy in this group is federal financing of systems of care through the Comprehensive Community Mental Health Services for Children and Their Families Program, the largest federal program for children with serious emotional disturbances.6 Direct funds also finance school-based services and services in other systems such as juvenile justice and child welfare. Both categories of policies shape the types, sources, and financing of services received by children with mental health problems. But mental health policies are not the onlyor often the most importantdriver of child mental health services. Scientific advances in child mental health, social changes, and health policy more generally also have important effects. Together these changes have transformed the delivery of child mental health services over the past fifteen years. This paper examines these changes and discusses their relationship to government policies in child mental health.
Evidence base The evidence base for treatments of children with mental health problems has historically been narrower than that for adults. Recently, however, that evidence base has expanded. For example, new clinical trials of children on psychotropic drugs that had already been tested in adults have yielded information about the efficacy of several antidepressants in children.7 Substantial resources have been devoted to developing and testing new psychotherapeutic and psychosocial interventions. Finally, further improvement of the evidence base and the development of new dosing regimens for well-established therapies, such as stimulants for attention-deficit/hyperactivity disorder (ADHD), have made it easier and more socially acceptable to treat children with these drugs.8
Treatment frequency
The expanded evidence base and armamentarium of drugs have led to tremendous growth in the number of children who receive treatment for mental health problems. Because physicians alone dispense medications, this growth has been concentrated in the medical sector (Exhibit 1
This increase in prescribing translated into a substantial increase in medical treatment. Between 1987 and 1998 the portion of American children (ages 517) who received care for a mental health problem increased from 5 percent to 7.7 percent.11 This increase occurred among children with all types of coverage, including those who were uninsured, which suggests that it was a consequence of changes in the availability and acceptability of treatment, not of financing policy. Note, however, that even at the higher rates seen in 1998, the portion of children who received treatment for a mental health diagnosis did not approach the prevalence of serious disorders. Earlier epidemiologic studies found that children with mental health problems who received treatment were more likely to receive it in school than in the medical system. Even the recent higher rates of medical service use are below the rates of school-based use in those earlier studies.12 Furthermore, the match between disorder and receipt of services is far from perfect: Some children who are receiving services do not meet diagnostic criteria, and many others who do meet criteria are not receiving services.13 Link to primary care Much of the increase in treatment over this period occurred through more frequent diagnosis and treatment of mental illness during primary care visits. More than four times as many visits to general practitioners involved a psychiatric diagnosis in 1999 than in 1985 (3,217,000 versus 757,000). This pattern is consistent with the many efforts made during this period to increase the role of primary care physicians, including pediatricians, in diagnosing and treating mental health problems. These efforts meshed well with the growing evidence base for psychopharmacological treatment of children. The explosion in prescribing followed the potent combination of increased awareness of a problem and the availability of a tool that could easily be used to address that problem within the parameters of usual office practice. However, several studies have shown that primary care providers often misdiagnose mental health problems in children, missing illnesses in some children and overdiagnosing others.14 When they provide drug treatment, primary care providers often underdose and undermonitor treatment, so that the outcomes are well below those attained in clinical trials.15 Finally, primary care providers rarely provide psychosocial treatment as an adjunct to pharmacological treatment. The average patient visit to a general practitioner including prescription of a psychotropic drug was only twenty-three minutes long50 percent longer than the average visit by a patient without a mental health problem.16 Mental health care spending Despite these expansions in outpatient and pharmacological treatment, aggregate nominal spending on child mental health services remained virtually unchanged over this period, mainly because these expansions coincided with a sharp decline in costly inpatient service use. During the mid-1980s increases in the cost of juvenile inpatient servicesparticularly in private psychiatric facilitieswere the main source of mental health care cost increases. In 1986 inpatient expenses accounted for about two-thirds of total mental health spending, and 26.4 children per 100,000 population were under care for a mental condition in a hospital inpatient facility that year.17 In 1988 an estimated $1.9 billion (1998 dollars) was spent on inpatient treatment of children with mental health problems.18 These high rates of inpatient use were troubling both because of their high cost and because there is little or no evidence to suggest that inpatient care is beneficial to children with mental health problems. Indeed, some studies suggest that some types of inpatient care may exacerbate childrens problems.19 Decline of inpatient care By 1996 inpatient care (of all types) accounted for only 33 percent of total mental health spending.20 The number of children under care in general hospital inpatient facilities had fallen by 33 percent.21 National spending on inpatient care of children had declined to $1.2 billion. Care in residential treatment centers, which tend to be less costly than inpatient facilities, climbed steadily through the 1980s but flattened and declined slightly beginning in 1990.22 These aggregate figures mask enormous changes in the way that inpatient and residential treatment facilities were used. In the mid-1980s children admitted to hospitals had very long staysaveraging eighteen days in general hospital in-patient units.23 In the late 1990s lengths-of-stay had fallen dramaticallyto eight days in general hospital inpatient units.24 Rather than serving as treatment modalities, inpatient units are increasingly providing crisis care and discharging seriously ill children for community follow-up. Community-based care These new patterns of careincreased use of medication treatment through the medical system and more limited use of specialized in-patient facilitieshave put greater demand on community-based modes of therapy and on services in the specialty medical sector. Many communities now report lack of availability of child psychiatrists and of inpatient hospital beds for crisis care of children.25 Shortages of child psychiatrists may be offset by the availability of other child mental health specialty providers (such as psychologists and social workers), who can fill some of these service gaps.26 Along with the increase in primary care treatment during the 1990s, the use of child psychiatric services also increased. The number of visits by children to child psychiatrists more than doubled between 1985 and 1999.27 This increase is consistent with the reduced reliance on inpatient care for children with serious emotional disturbances and with the increased number of children who enter mental health services through general practitioners and are then referred further along within the medical sector. Supply of child psychiatrists Increased use of specialty mental health professionals was not accompanied by a substantial increase in supply. After rising slowly through the 1980s, the ratio of child psychiatrists to children has remained flat since 1990. Even this average masks more serious problems in some areas: The 6,000 child psychiatrists in the United States are very unevenly distributed, and many in office-based practice do not treat Medicaid patients.28 In addition, the earnings of child psychiatrists have increased only slightly. Yet despite the apparent need for more providers in many areas, residency slots in child psychiatry regularly go unfilled.29 Alternatives to inpatient care Institutional alternatives to long-term hospitalization are also lacking in many communities. Reductions in inpatient service use have been accompanied by increases in the use of case management services, partial hospitalization, and other community-based services. However, the increase in the provision of these servicesparticularly evidence-based serviceshas not kept pace with reductions in inpatient service use. Without viable community-based alternatives, families rely on crisis hospitalization in general hospital beds. The number of short (less than three days) stays in general hospital inpatient beds by child psychiatric patients increased by 41 percent from 1986 to 2000.30
The patterns of child mental health service use described above were strongly affected by changes in the structure of health insurance in this period. Expansions of Medicaid in the late 1980s and the introduction of SCHIP in the late 1990s altered the insurance distribution among children who used mental health services. The share of all children, and of children using services, who were uninsured fell. While children without insurance are about as likely as those with coverage to have received some mental health services, uninsured children are likely to use services less intensively.31 Public insurance covered children who would otherwise have been uninsured. In addition, to some extent, public insurance coverage displaced private insurance. By 1998, 20 percent of children with a diagnosed mental health problem were publicly insured.32 Medicaid and SCHIP Public insurance has always covered a disproportionate share of children with mental health problems. Children with serious emotional disturbances (SED) who qualify for Supplemental Security Income (SSI)a group that nearly tripled over the 1990s following litigation and subsequent regulationsare also eligible for Medicaid.33 Those eligible for Medicaid because they participated in Aid to Families with Dependent Children (AFDC) or foster care also tended to have much higher rates of mental health problems than privately insured children had. The new groups of children who have entered public insurance tend to have fewer serious mental health problems than their predecessors had. Nonetheless, this switch in coverage is important to them, because mental health benefits in Medicaid and SCHIP tend to be more comprehensive than those in the private sector (although SCHIP benefits are often not as generous as Medicaid benefits). This broadening of the population also has implications for the treatment of children with more serious disorders. State Medicaid directors must now consider both seriously and less seriously ill children in making policy decisions, and this may dilute the programs focus on the most seriously ill.
Private insurers and Medicaid programs in most states have shifted much of their mental health coverage into managed behavioral health care. By 1999 forty-two states operated some form of managed behavioral health care programtriple the number in 1996.34 Some of these arrangements include children with SED in all plans; others "carve out" the care of such children to special plans. In these arrangements, Medicaid contracts with private insurers to provide service to Medicaid beneficiaries, generally paying on a capitated basis. Managed behavioral health care for children and adolescents has generated very large savings, mainly through sharp reductions in the use of inpatient services accomplished through utilization review. In themselves, these reductions are not expected to have had substantial effects on child mental health outcomes, because the value of inpatient services for children is widely disputed. However, no studies have been conducted to document the overall effects on childrens mental health and well-being.35 The lack of evidence of negative outcomes combined with the sizable cost savings suggest that managed behavioral health care has probably been a success in childrens mental health care. Nonetheless, the switch to managed care raises the potential for risk selection, underservice, and cost shifting for children, just as it does for adults. One preliminary study found that children with SED were 20 percent more likely than other patients of the same age to be disenrolled from managed care plans.36 A study of Medicaid managed care in Pennsylvania found a higher rate of disenrollment for children with psychiatric admissions than for those with other admissions.37 Many analysts have expressed concern that by underserving or disenrolling children with mental health problems, the introduction of managed care could shift the burden of mental health care to public systems outside the traditional medical and mental health sectors, such as juvenile justice, special education, or child welfare. To date, there is no convincing evidence that this has occurred.38 Although the negative potential effects of managed behavioral health care do not seem to have materialized, neither have many of the hoped-for benefits. Studies document some increases in alternative community-based care in some managed care settings, but the effects are not large or widespread.39 Problems of service coordination persist and in some cases are exacerbated by Medicaid managed care. Parity The final element in child mental health financing policy has been the effort to achieve parity of mental health benefits with general health benefits. The past five years have seen a variety of legislative efforts to achieve this. In 1996 Congress passed the Mental Health Parity Act. Implemented in 1998, the act is limited in that it only requires parity in benefits if mental health coverage is offered. It applies to lifetime and annual dollar limits only and does not require parity in copayments, deductibles, or limits on days or visits. Some states have gone further and have passed legislation requiring that there be parity between mental health and medical benefits, although some of these laws are limited to particular types of mental health conditions only.40 Nonetheless, a recent survey of private insurance benefits documents the persistence of visit limits for child inpatient and outpatient care.41 Out-of-pocket burden In spite of the limitations of parity legislation, changes in patterns of care and in insurance have led to improvements in the financial burden of child mental health care. The out-of-pocket share of payments for the average child with a mental health problem fell from 47 percent to 33.5 percent between 1987 and 1998, a 45 percent reduction in real out-of-pocket payments.42 Children with serious problems also benefited from this reduction: The out-of-pocket share at the high end of the expense distribution fell over this period. The decline in out-of-pocket burden came about for four reasons. First, the shift of children from uninsurance and private insurance to Medicaid and SCHIP, programs that incorporate no or very low copayments, reduced the potential out-of-pocket exposure. Second, for children remaining in private insurance, managed care substituted nonfinancial rationing mechanisms, such as utilization review, for cost sharing. Third, increases in treatment occurred through increased medication use in general practice, and mental health care provided by general practitioners is not usually treated as a mental health benefit in private insurance contracts. Visit limits and copayment differences did not apply to this care. Finally, prescription drug coverage, which generally covers drugs that treat mental health problems in the same way that it covers other drugs, grew substantially between 1988 and 1998, reducing many families out-of-pocket burden. While parity has not been achieved, and some families still face substantial out-of-pocket burdens for mental health care, the extent of the problem has diminished.
Childrens mental health needs differ from adults needs in part because of the circumstances of childrens lives. Children with mental disorders are typically involved in many service systems, attend school, and live with their families. Indeed, most children who receive mental health services are seen outside the medical and mental health systems. For this reason, since 1984 the centerpiece of child mental health policy has been the development of systems of care that would integrate care across these diverse settings. Federal financing for this effort began with the Child and Adolescent Service System Program (CASSP) in 1984 and continued with Comprehensive Community Mental Health Services for Children and Families ($78 million in 1999).43 Mental health policies for community-based services also respond to the fact that the medical sector does notand probably cannotprovide all of the services that children need. Prevalence of treatment in medical settings is still well below the estimated prevalence of disorder. In many communities formal mental health services simply do not exist. Community-based providers finance and provide services to children who are not adequately treated in the medical care sector and do not have access to formal specialty mental health care. Furthermore, the service needs of severely ill children go well beyond the specialty medical sector. Financing for systems of care is often the only policy-directed funding that provides these additional elements of care to many severely ill children. Recent evidence has called into question the logic of emphasizing interagency coordination through systems of care. Several large studies conducted in the 1990s suggest that coordination and the development of systems of care alone are not associated with major improvements in mental health outcomes for most children.44 In some settings, coordination of care may even lead to diffusion of responsibility and inferior results.45 These studies suggest that what is being coordinated is more important than the coordination itself. Along with these disappointing findings has come an encouraging raft of evidence that specific community-based programs are effective in improving outcomes for children. These programs, which have mainly been designed as alternatives to inpatient treatment, include multisystemic therapy for conduct disorder, therapeutic foster care, and certain case management and wraparound service models.46 Controlled studies show that these programs can generate impressive results in real-world settings.47 However, the success of these programs, which are typically formal, precisely defined in treatment manuals, and theoretically based, generally depends on fidelity to the details of the model. Divergence from the script or modification of the design often reduces the efficacy of the intervention. In many ways, the implementation of evidence-based interventions in communities resembles the introduction of psychopharmacological prescribing in primary care. Community providers, like primary care doctors, often reduce the dosage of their intervention below clinically desirable levels. The challenge for policy focused on systems of care is to develop mechanisms to diffuse and usefully implement these evidence-based interventions in community-based settings and to align research funding accordingly.48 The models used to develop informal systems of agency coordination models may not be effective in disseminating these more formal practices.49 The delivery and financing of child mental health services have greatly improved in the past decade: The out-of-pocket burden of financing mental health care has fallen; more children have health insurance that covers mental health services; the evidence base for service provision has expanded; and more children are receiving effective therapies today than ever before. Despite these successes, problems remain. Most children still do not have access to effective therapies, and for many children with very serious problems, mental health service systems still have no solutions available. During the 1980s severely ill children received a great deal of costly, but largely ineffective, inpatient care. Todays delivery system rations inpatient and costly specialty services more strictly. But the evidence-based community alternatives to these services do not yet exist in most places, and the limited availability of specialty services leaves some children with few options. Research is needed to identify evidence-based community treatment modalities that can effectively treat seriously ill children and that can readily and practically be implemented in existing service systems. This should be a priority for federal research funding. Mental health policy must work to develop incentives and models that will diffuse these evidence-based treatment modalities once they exist.
The authors thank the John D. and Catherine T. MacArthur Foundation for research funding. Kathrine Jack and Sarah Little provided helpful research assistance. Cristiane Duarte, Richard Frank, Michael Friedman, Kimberly Hoagwood, Ping Wu, and participants at a conference held by Health Affairs provided useful suggestions but are not responsible for any remaining errors and do not necessarily endorse the opinions voiced herein.
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