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A Weekly Publication of the Department of Government Relations  Week of October 12, 2009 
In This Issue
Federal Funding Update
Mental Health Parity Rules Delayed Until January 2010
Insurance Industry Stakeholders Launch Initiative to Automate Administrative Services
Pamela Hyde Nominated for Post as Administrator of SAMHSA

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Federal Funding Update
The President signed a continuing resolution (CR) on October 1 to keep most of the federal government, including National Institutes of Health (NIH), Substance Abuse and Mental Health Services Administration (SAMHSA) and Health Resources and Services Administration (HRSA) operating at FY '09 funding levels through the end of October. The CR was paired with the Legislative Branch appropriations bill (H.R. 2918); the House approved the final bill September 25, while the Senate approved it September 30. This CR translates into a postponement of increases slated for NIH and SAMHSA.
Mental Health Parity Rules Delayed Until January 2010
HHS Secretary Kathleen Sebelius said in an October 2 letter to lawmakers that the Administration aims to issue regulations for the 2008 mental health parity law by January 2010.  The Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 (Pub. L. No. 110-343) required that regulations be issued by October 3, 2009, but HHS and the Labor and Treasury departments are still working to develop them.  The letters were in response to queries from Senator Al Franken (D-MN) and Representative Patrick Kennedy (D-R.I.) who spearheaded efforts from Senate and House members regarding proper implementation of the regulations.  For most insurance plans, the law goes into effect January 1, 2010, and concerned lawmakers and mental health advocates have said the absence of regulations could lead to misinterpretations of the law.  The House and Senate letters also highlighted areas that members said the agencies must take careful care to address such as scope of services, medical management, treatment limitations, and the use of "separate but equal" deductibles.
 
HHS has stated that insurance plans should make reasonable efforts to adhere to the law's intent in the absence of regulations and a spokesman for America's Health Insurance Plans, a trade association representing health insurers, said that health plans have already made changes to come into compliance with the law though they are seeking further guidance on some technical questions. 
 
DGR continues to monitor the regulatory process and provide any assistance possible to the Administration, in addition to helping provide guidance to employers, insurance plans and physicians on how to properly implement the law.
Insurance Industry Launches Initiative to Ease Physician's Administrative Burden
On October 5, America's Health Insurance Plans (AHIP) announced an arrangement to launch regional and statewide initiatives that will simplify and streamline administrative tasks in physicians' offices and hospitals through implementation of health information technology. Beginning in early November, the initiative, sponsored by AHIP and the Blue Cross and Blue Shield Association, will launch a network system in Ohio to connect physicians to multiple insurers through a web portal, or another type of information channel, in a given region of the country for the purpose of conducting key office tasks, such as submitting claims or determining benefit coverage. The initiative could result in very significant savings estimated in the hundreds of billions of dollars over the next 10 years. The eight major insurance companies involved in the initiative are: Aetna, Anthem Blue Cross and Blue Shield, CIGNA, Humana, Kaiser Permanente, Medical Mutual of Ohio, UnitedHealthcare, and WellCare Health Plans Inc.
Pamela Hyde Nominated for Post as Administrator of SAMHSA
On October 2, President Obama announced his nomination of Pamela Hyde for the post of SAMHSA Administrator.  Hyde has served as Secretary of the New Mexico Human Services Department since 2003.  She has also served as Director of several other public agencies, including the Ohio Department of Mental Health, Ohio Department of Human Services, and Seattle's Department of Housing and Human Services.  Much of Hyde's 30 years of experience in management and consulting has been in the behavioral health arena, including her position as CEO of the non-profit behavioral healthcare organization Comcare. She has special expertise in community-based care integration. The Senate Finance Committee must approve Ms. Hyde's nomination.