April 2001
A STATE CALL TO ACTION: Working to End Child Abuse and Neglect in Massachusetts
MCC home SECTION VI: Taking Action

CHAPTER 19

Options for Funding Reform

According to Bear Stearns investment broker Ron White, "Investment in child abuse prevention and treatment provides government and society with estimated rates of return that would make a venture capitalist envious." As we have made clear in this report, child abuse and neglect have a tremendous impact on society, with victims of child abuse more likely to fail at school, engage in criminal behavior later in life, and costing taxpayers millions of dollars in treatment for mental illness, physical and emotional disabilities and alcohol and drug addictions.

Massachusetts is currently enjoying an almost unprecedented period of economic prosperity. This is an ideal time to consider what the public sector's role must be in supporting child abuse prevention efforts and treatment for abuse and neglect victims.

To date, sufficient funds have not been allocated to prevent the abuse and neglect of our nation's children, a public health crisis of significant proportions. While for every death attributed to cancer, America spends $794 in prevention, intervention, and research; for heart disease, $440; and for AIDS, $697, for every death attributed to violence, we spend a mere $31.[291]

Adequate resources exist in Massachusetts to address the child abuse crisis in our state. The following funding streams have been identified and should be explored further as possible sources to implement recommendations of the State Call To Action recommendations.

 

Potential Funding Sources

Crime Victim Compensation Fund

The Victim Compensation Fund has applicability to minors who are victims of abuse, and victim witnesses to violence. Currently victims of crime are entitled to receive up to $25,000 from the Victim Compensation Fund in order to pay for their medical or psychological treatment. The fund can be used as a last resort when insurance or Medicaid benefits have been depleted and ongoing treatment is needed. Children who witness violence can make a claim through their protective parent or guardian and receive a portion of the award. Historically, the fund has not been tapped to support multidisciplinary assessments of abused and neglected children, but proposed federal regulations relating to victim compensation funds provide for this coverage. The Massachusetts Attorney General's Office has expressed interest in drafting legislation to amend the current state statute and regulations in order to expand coverage for multidisciplinary assessments.

 

Distinct Entitlement for Traumatized Children

Massachusetts is currently experiencing a crisis in child psychiatric services. Traumatized children receiving Medicaid coverage have a need for services that far exceeds the needs of other children receiving Temporary Assistance for Needy Families (TANF) aide. A separate entitlement for traumatized children through a higher capitation rate for these children is necessary. This capitation rate could be used to carve out services for this special group when negotiating contracts with service providers. This would vastly increase the funding pool for this high-risk population.

 

Expanded Medicaid Coding

Medicaid codes currently do not provide for the billing and payment of coordination and collaboration among professionals that are so crucial to multidisciplinary assessments. Adding new codes to pay for these services can be done with operational ease, and does not require time-consuming legislation.

 

Private Insurance Carriers

Mental health insurance parity legislation has recently passed in Massachusetts. The law provides full mental health insurance benefits for children (and adults) who have biologically-based brain disorders, such as mental illness and bipolar disorders. The law also provides that insurers provide a minimum of 60 days of inpatient care and 24 outpatient visits for non-biologically based disorders, such as adjustment disorders, which can be common among abuse victims.

 

Blended Funding

Agencies need to break down barriers so that a child can receive what he or she needs without the constraint of internal regulations that may prevent funding due to a technicality. Interagency agreements to blend funding streams are now crucial so that the impact of the money spent on each child is maximized. For example, DSS, the Department of Medical Assistance, and the Massachusetts Behavioral Health Partnerships have jointly created transitional care units at the Franciscan and MacLean Hospitals. These supervised residences serve children and adolescents who would otherwise have prolonged stays in the highly restrictive environment of a hospital ward.

 

Community Fundraising Initiatives

Many child abuse prevention/treatment and family support initiatives have been successfully supported through the creativity and commitment of community non-profit boards. Working with concerned citizens, businesses, churches, local foundations and other philanthropic groups, they have complemented State and Federal funds. The Children's Advocacy Center of Barnstable County, for example, serves child victims of sexual and physical abuse and is located in a lovely home donated and furnished by local merchants and residents. Board members from the community meet to discuss fundraising and ways to improve the experience of children at the Center.

In Florida, local Child Protection Teams (CPTs) raise a significant percentage of their annual budgets through the efforts of their local communities. This represents the best example of how state and local partnerships can take joint responsibility for vulnerable children and families.

 

Federal Funding

The federal government has increasingly begun to recognize the value of comprehensive prevention initiatives that promote healthy development and reduce a variety of social problems. Several initiatives, through an array of Federal government programs, have allocated funds to the states to encourage and support programming. In March of 2000, the Child Abuse Prevention and Enforcement (CAPE) Act was signed into law with an appropriation for each of the states. In addition, many states use their Temporary Assistance to Needy Families (TANF) funds to support and expand community-based family support programs. Currently, research is underway to determine how these funds could be applied in Massachusetts to support the recommendations.

 

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Section VI: Taking Action:

 


Massachusetts Citizens for Children
14 Beacon Street, Suite 706 ~ Boston, MA 02108
phone: 617-742-8555 ~ fax: 617-742-7808 ~ www.masskids.org