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Special Report
Preventive Interventions
Under Managed Care: Mental Health
and Substance Abuse Services


Introduction

The prevalence and consequences of substance abuse and mental health problems in the United States create an imperative not only to develop adequate, appropriate, and effective treatments, but also to maximize the potential of preventive approaches. The burden of these problems includes the suffering of the individual and of those in that person’s environment, the costs of medical treatment and other related services, and the loss of productivity at work and at home. The stigma often associated with mental health and substance abuse problems imposes an additional burden. Many of these problems are chronic or recurring; are difficult to treat; and require extensive, expensive services that may not be available or sufficient to meet community demands. For all of these reasons, prevention and early identification of mental disorders and substance abuse is vastly preferable to the human and material costs of related illness, treatment, and rehabilitation.

Increasing numbers of Americans depend upon managed care organizations (MCOs) to meet their health care needs. In this era of escalating health care costs, purchasers of health care are under enormous pressure to obtain the highest quality and most comprehensive services at the lowest possible price. Because of their central role in promoting and protecting the health of millions of Americans, MCOs have a particularly strong stake in the substance abuse and mental health arena and a unique opportunity to intervene as early as possible to prevent and control substance abuse and mental health problems in their enrolled populations.

Programs and services to prevent substance abuse and mental health problems should be available through all MCOs because they are a vital component of the health care continuum. When available, documentation of effectiveness and cost savings (or cost neutrality) strengthens the case for incorporating preventive behavioral health care services into MCO contracts. "Where there is a perceived financial incentive," notes one analyst, "prevention has flourished" (Omenn, 1994, p. 7).

However, lingering questions about the effectiveness of preventive interventions and concern about their impact on cost have contributed to reluctance among some MCOs to cover these services. Even if a preventive intervention has been proven effective, MCOs may hesitate to provide coverage if the costs of delivering the service are not greater than or at least neutralized by associated savings. For MCOs, interventions that demonstrate short-term savings in other covered treatment services are of great interest. Some interventions may produce payoffs outside the medical care system (for example, by reducing workplace absenteeism) or over the long term, when the savings may not be realized by the MCO that provided the prevention program or service. As ongoing research provides greater insight into the costs of preventive interventions for substance abuse and mental health problems, it will be important to design and test financial incentives to invest in preventive services for providers that do not derive short-term economic benefit from their adoption.

Therefore, this document responds to two questions commonly asked about these interventions: (1) Are they effective? (2) Can they produce cost savings, or can they be provided without increasing the net cost of care? This literature review addresses concerns about the outcomes and cost of these preventive interventions and helps reduce barriers to coverage for programs and services proven to be effective and economically feasible. The summarized articles provide science-based evidence that interventions designed to prevent substance abuse and mental health problems can contribute to health and well-being; many also demonstrate either cost savings or no negative impact on cost. This evidence may not be widely known among purchasers and consumers.

Persuasive evidence can help managed care executives, health care purchasers, and consumers make informed decisions about the benefits and liabilities of incorporating effective interventions in managed care contracts. The Substance Abuse and Mental Health Services Administration (SAMHSA) is responsible for disseminating knowledge regarding model programs and their out-comes and for publicizing results of state-of-the-art research and evaluation. It is vital that managed care stakeholders learn about research that demonstrates the value of preventive substance abuse and mental health services. That is the primary purpose for which this review has been developed.

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