WeeklyFinancingNewsPulseStateandLocalEditionfinal20091013.pdf (PDF | 195.42 kb)
SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 13, 2009 10/13/09 1 SAMHSA222s Weekly Financing News Pulse: State and Local Edition Arizona California Connecticut Florida Georgia Illinois Iowa Kansas Maryland Massachusetts Michigan Missouri New York North Carolina Ohio Oregon Pennsylvania Tennessee Virginia Wisconsin For quest ions or comments, please contac t Kevin Henness y ( kevin.hennessy@samhsa.hhs.gov ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 13, 2009 10/13/09 2 Around the States: State and Local Behavioral Health Financing News Arizona ASU to Open Children222s Mental Health Center : Funded in part by a grant from United Healthcare , Arizona State University (ASU) will o pen a new children222s mental health center on November 2 . The center will be called the Southwest Health Center for the Prevention and Treatment of Child - Adolescent De pression and Anxiety Disorders ( Phoenix Business Journal, 10/5 ). Mayo Clinic Unit No Longer Accepting Medicare: Beginning January 1, the Mayo Clinic Family Medicine- Arrowhead will no longer accept Medicare for primary care services. The program, which Ma yo officials are calling a two - year pilot, will only affect the 3,000 Medicare patients at the Arrowhead location. The pilot comes as Medicare rates have been stagnant for over 10 years while costs have increased 4 to 8 percent annually ( Arizona Republic, 10/9 ). California Governor Signs Some Health Bills , Vetoes Others Including M/SU Parity Expansion: The week of October 11, Governor Arnold Schwarzenegger (R) signed AB 119 , prohibiting California health insurers from charging different premiums based on gender and AB 108 , prevent ing health insurers from canceling policies after they have been in effect for 24 months . In addition, Gov ernor Schwarzenegger vetoed AB 2 , AB 98 , and AB 244. AB 2 would have created an independ ent review process for insurers seeking to rescind coverage or alter medical underwriting requirements, and limited insurer rescissions to instances where enrollee s willfully misrepresented themselves. AB 98 would have required all individual insurance policies to cover maternity services and AB 244 would have expanded mental health parity ( CA Legislature ; California Progress Report, 10/9 ; Sacramento Business Journal, 10/12 ; San Francisco Chronicle, 10/13 ). Efforts to Increase Federal Medicaid Funding Unsuccessful : Governor Arnold Schwarzenegger (R) signed AB 1383 , w hich was designed to im pose a new provider fee on California hospitals to draw down an additional $2 billion in federal Medicaid funds ; however, the bill will not impose the fee. Prior to delivery to the governor, the bill was altered in the final hours of legislative debate and will not take effect until January. In addition, further legislative action is required to approve the funding mechanism. Nearly all hospitals and the California Hospital Association favor the fee, which would result in a net gain for hospitals because of the increased federal funding However, anti - tax groups ,including the California Chamber of Commerce , oppose the bill ( Los Angeles Times, 10/7 ; Kaiser Health News, 10/7 ; Sacramento Business Journal, 10 /12 ). State Officials Estimate Effects of National Health Care Reform : State officials estimate that if national health care reform legislation expands California222s Medicaid program, Medi- Cal, to cover all individuals earning up to 133 percent of the f ederal poverty level ( FPL ) , program enrollment could increase by 1.6 million individuals . State officials say that even with the federal government assuming 85 to 90 percent of the new cost, the additional enrollees constitute 223hundreds of millions224 in ad ditional costs for the SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 13, 2009 10/13/09 3 state227 perhaps more if health reform legislation mandates increased reimbursements for primary care physicians ( San Jose Mercury News, 10/12 ). HICAP Receives Federal Medicare Outreach Funds : The Health Insurance and Advocacy Program (HICAP) will receive over $530,000 in federal funding to locate low - income Medicare beneficiaries who are unaware of their eligibility for extra Medicare prescription drug subsidies. T he Centers for Medicare & Medicaid Services (CMS) and the Social Security Administration (SSA) have already isolated the individuals222 names and addresses and have funded HICAP to contact and enroll them ( Sacramento Business Journal, 10/6 ). San Francisco Mayor Proposes Budget Cutting Health and Human Services : Mayor Gavin Newsom (D) proposed a budget that cuts $26.5 million from the city222s health and human services, including $1.1 million from local emergency room physician payments and $700,000 from substance abuse treatment. Initial estimates indicated that the health care cuts would be larger; however, the San Francisco Department of Public Health announced tha t it would correct its deficit through layoffs, saving a $6 million cut to services. The budget now awaits approval from the San Francisco Board of Supervisors ( Missio n Local, 10/6 ). L.A. County Officials Have Little Success Screening Public Health Rolls for Non - Citizens : After receiving $28 million in state and federal funds to audit public health records to detect and prevent illegal immigrants from obtaining benefits, L.A. County officials report catching few violators. County officials report that between July 2008 and February 2009, less than 1 percent of applicants lacked proper documentation and that many within that group e ventually produced the necessary ide ntification verification ( Los Angeles Times, 10/6 ; Kaiser Health News, 10/6 ). Connecticut State to Close Psychiatric Hospital Because of Budget Cuts : The Connecticut Department of Mental Health and Addiction Services plans to close Cedarcrest Hospital, an M/SU hospital in Newington, CT . The department plans to transfer 53 patients to Connecticut Valley and 10 patients to Greater Bridgeport Community Mental Health Center and provide treatment for the remaining 30- 40 patients through community - base d services. The plan, which must be approved by the sta te222s Office of Health Care Access , is estimated to save the state $12 million over five years ( Middletown Press, 10/11 ). Health Foundation Awards Youth Mental Health Grants : The Connecticut Health Foundation awarded $750,000 to four organizations to reduce the number of youth entering the justice system or other restrictive mental health treatment facilities as a result of mental health issues. The gran ts, which provide $144,000 to $200,000 over 18 months, were awarded to the Lower Naugatuck Valley Parent Child Resource Center, the Middlesex Hospital222s Center for Behavioral Health and Family Advocacy, the town of Manchester222s Youth Services Bureau, and F amily Services of Greater Waterbury ( Middletown Press, 10/10 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 13, 2009 10/13/09 4 Florida State Anticipates Medicaid Shortfall a fter ARRA Funding Ends : Florida officials anticipate a budget shortfall of up to $2.6 billion in the 2010 - 2011 budget year after American Recovery and Reinvestment Act (ARRA) funding expires December 2010. The largest single share of the projected shortfall, $1 billion, is expected to come from the state222s Medicaid program , which has seen a 13 percent increase in enrollees this year and is expected to see an additional 5.3 percent increase next year ( Ocala Star- Banner, 10/10 ). Georgia Medical College of Georgia to Take Over State Mental Hospital : Stemming from a U.S. Department of Justice (DOJ) investigation into Georgia222s mental hospitals (Financing News Pulse 10/6, 4/31, 1/23 editions), the Medical College of Georgia (MCG) has agreed to take over the Eastern Central Georgia Regional Hospital under a deal reached with the Department of Behavioral Health and Developmental Disabilities. Under the deal, MCG will run the facility for three to five years but may be asked to continue after five years if additional management is needed ( WRDW, 10/8 ; Georgia Public Broadcasting, 10/12 ). Illinois Arlington Heights to Ban Some Single - Serving Alcohol Sales : An ordinance resulting from a compromise between village staff and liquor storeowners would alter the size of liquor and beer containers that stores may sell. The ordinance would prohibit the sale of hard liquor in containers smaller than 6.5 fluid ounces and prohibit the sale of singe cans of beer or malt liquor smaller than 24 ounces and larger than 3 9 ounces. In addition, the new ordinance would require that individual bottles of malt liquor or beer be limited to 13 to 39 ounces and would prohibit the sale of any chilled single bottles of malt liquor or beer. The ordinance was endorsed by the villag e board and is scheduled for an official vote October 19 ( Daily Herald, 10/10 ; Chicago Tribune, 10/7 ; Daily Herald, 10/13 ). Health Center Uses Grant Funding to Expand and Increase Capacity : Using $500,000 in ARRA funding, $206,000 from the Illinois Children222s Healthcare Foundation, and $280,000 from Aunt Martha222s health centers, Aunt Martha222s Vermillion Area Community Health Center will double its size and increase its capacity to provide primary, dental, and behavioral health services . A portion of the grant funding is dedicated exclusively to mental health treatment ( Danville News - Gazette, 10/13 ). Macon County Receives M/SU Court Planning Grant: The DOJ222s Bureau of Justice Assistance (BJA) has awarded Macon County a $50,000 planning grant for a behavioral health court. The court would accept substance abusers but primarily target those with mental health conditions . Macon County officials have also applied for a $250,000 implementation grant that would provide three years of funding for the county222s court ( Herald - Review, 10/9 ). McHenry Count y Approves ARRA Bond to Expand Mental Health Board Facilities : On October 7, the McHenry County Board approved the use of $4 million in ARRA building bonds to expand the McHenry County Mental Health Board222s building. The funds come from $45.8 million allo cated to the county for 223 shovel - ready 224 building projects ( Northwest Herald, 10/7 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 13, 2009 10/13/09 5 Iowa Governor Cuts Agency Budgets by 10 Percent : Electing not to call a special session of the Iowa Legislature , Governor Chet Culver (D) announced a 10 percent across - the - board cut to state agency budgets on October 8. The cuts , which are expected to reduce state spending by $600 million, come after the Revenue Estimating Conf erence announced that state revenues were $415 million below previously anticipated levels. Governor Culver said that he hopes to lessen the cuts to children222s health care, public safety, and Iowa Workforce Development ( KCCI, 10/8 ; Des Moines Register, 10/8 ). State agencies have until October 20 to submit new budget plans to the Iowa Department of Management , which is expected to approve final plans by October 28 ( Des Moines Register, 10/10 ). Kansas AG Announces Mental Health Foundation222s Donations : Kansas A ttorney General Steve Six announced that Tower Mental Health Foundation, formed as the result of a settlement between the Kansas Attorney General222s Office and then Menninger Foundation, donated a total of $48,028 to three mental health facilities in the st ate. The foundation funded technological upgrades at the Central Kansas Mental Health Center and the Mental Health Center of East Central Kansas and provided a service dog to the Four County Mental Health Center ( Kansas City Infozine, 10/12 ). Maryland Update: Administration Officials Consider Halting Psychiatric Hospital Closure : After the Maryland Board of Public Works approved Governor Martin O222Malley222s (D) $454 million p ackage of cuts August 26 (Financing News Pulse 8/31 edition), O222Malley Administration officials are considering halting the previously - approved closing of the Upper Shore Community Mental Health Center in Chestertown. Maryland Comptroller Peter Franchot h as asked Health Secretary John Colmers to prepare an alternate plan, allowing the state to spare the facility whose closure is expected to save $8.4 million annually. Health officials are concerned that eliminating the hospital will severely limit access to mental h ealth care in the region. The b oard will make a final decision at their next meeting November 17 ; a second round of budget cuts, expected to total roughly $219 million , will also be considered at that time ( Washington Post, 10/7 ; Baltimore Sun, 10/8 ). Brief Examines Effort to Use Income Tax Data to Target Children Eligible for Medicaid and CHIP : The Robert Wood Johnson Foundation (RWJF) released a brief examining the Maryland Department of Health and Mental Hygiene222s program to use state tax return data to target children eligible for the Children222s Health Insurance Program (CHIP) and Medicaid. After passage of the Kids First Act, Maryland officials were able to identify and enroll 27 percent of the state222s 1.4 million eligible children by utilizing state tax return data . The brief also examines lessons learned from the Maryland program that may be applicable to other states ( RWJF, 9/28 ; Kaiser Health News, 10/2 ). Massachusetts Brief Examines Frequent ER Users Under MA222s Health Reform Law : A brief relea sed by the Urban Institute and funded by the Blue Cross Blue Shield of Massachusetts Foundation, the Commonwealth Fund, and the RWJF , examined ER utilization in MA under the state222s 2006 heal th care reform law. SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 13, 2009 10/13/09 6 Nearly one - third of the MA population used t he ER between 2007 and 2008, with nearly 50 percent of those visitors reporting at least one non - emergency visit. The Urban Institute found that 75 percent of non- emergency visitors cited a need for care after standard operating hours as a reason for their ER visit and 55.8 percent cited an inability t o obtain a doctor222s appointment . In addition, the brief indicates that nearly 88 percent of those attending the ER three or more times annually reported significant health problems ; most also reported employ ment problems and income under 300 percent of the FPL ( RWJF, 9/24 ; Kaiser Health News, 10/2 ). Michigan Senate Holds Approved Budget Bills to Avoid Veto, House Passes Physician Tax : Governor Jennifer Granholm (D) called on Senate Majority Leader Mike Bishop (R) to send her six budget bills that have already been approved by the Michigan Legislatu re (Financing News Pulse 10/6 edition) . Governor Granholm has announced plans to veto portions of those bills that reduce funding for programs she supports, including the state222s Medicaid program. In a bill yet to achieve final legislative approval, the Michigan House passed a 3 percent tax on non - Medicaid physician services designed to raise $300 million in revenue and draw down an additional $525 million in federal matching funds. The Michigan Senate is set to vote on the measure next week. As of October 12, the governor had signed six of the 15 bills needed to pass a state budget ( Detroit Free Pr ess, 10/13 ; Detroit News, 10/12 ; Detroit Free Press, 10/12 ; Detroit News, 10/7 ). Kent County Pilo t Reduces Children222s ER Visits , Will Continue Another Year : The Children222s Healthcare Access Program, run by Michigan insurance company Priority Health has reduced ER usage by 6 percent among program participants since its inception in August 2008. The program, which Priority has signed on to continue for an additional year, provides increased reimbursements to primary care physicians to ensure that 1,000 Medicaid - enrolled children in Kent County have access to pediatricians and preventative care ( WOOD, 10/12 ). Missouri Kansas City Survey Finds Disagreement Between General Public and Health Care Insiders on Health Reform : On October 7, Blue Cross Blu e Shield of Kansas City and the Greater Kansas City Chamber of Commerce released the results of a Kansas City - area health care reform survey . The survey found that 53.5 percent of health care insiders wanted to 223keep our current health care system,224 2.3 percent supported a 223government 226 run single payer224 system, and 13.1 percent supported state - run health care co - ops. In contrast, only 31.8 percent of the general public want to keep the current health care system, 26 percent favor a single payer plan, and 35.2 percent favor state - run co - ops. However, while insiders were less warm to most components of Democratic health care legislation, 69 percent of 223insiders224 supported some sort of mandated health care coverage compared with only 49 percent of the general public ( Kansas City Business Journal, 10/7 ). New York Governor Orders $ 500 Million Budget Cut , DOH Affected: On October 6, Governor David A. Paterson (D) ordered a $500 million cut in state agency222s non - personnel expenses. The cut, which constitutes SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 13, 2009 10/13/09 7 about 11 percent of the state222s non - labor costs, is designed to help close a $2.1 billion budget deficit which administration officials estimate may reach $3 billion before the end of the fiscal year. The New York Department of Health (DOH) will lose about $36.9 million under the governor222s cuts ( New York Times, 10/6 ; New York Daily News, 10/6 ; Buffalo News, 10/7 ). North Carolina State Employee Health Plan to Charge More for Smokers and Obese Employees : Beginning July 2010, North Carolina employees who smoke will pay 10 percent more for their employee health benefits than non- smokers, saving the state an estimated $13 million annually (Financing News Pulse 2/27 edition) . In addition, beginning July 2011, obese employees will pay an additional 10 percent as well. The standard employee benefit package pays 80 percent of employee claims; howev er, smokers and obese employees222 plans will pay only 70 percent of claims ( Charlotte Observer, 10/7 ; Bloomberg via News Day, 10/7 ; Kaiser Health News, 10/8 ). Outpatient Substance Abuse Center Opens in Laurinburg : Sout heastern Regional Medical Center opened an outpatient substance abuse center in Laurinburg. The center offers North Carolina Department of Social Services assessment and treatment services, DWI assessment and treatment services, group and individual outpa tient treatment services, substance abuse intensive outpatient programs and family services ( Fayetteville Observer, 10/12 ). Ohio AHIP, Insurers Pilot Online Data Portal : On October 5, America222s Health Insurance Plans (AHIP) announced a pilot program designed to provide a single online data portal for doctors to submit claims information to the majority of regional insurers. The one - year pilot, currently underway in both Ohio and New Jersey, has the backing of physician and insurance groups representing 90 percent of Ohio222s privately insured residents. In Ohio, Aetna Inc. , Anthem Blue Cross and Blue Shield, CIGNA Corp. , Humana Inc. , Kaiser Permanente , Medical Mutual of Ohio , United Hea lthcare and WellCare Health Plans Inc. are participating. If the pilot is successful, AHIP hopes to deploy similar programs in all regions ( Med City News, 10/5 ). State Issues Grant to Help Homeless Veterans with M/SU Conditions : The Ohio Department of Mental Health (DMH) has issued a $67,000 grant to Greater Cincinnati Behavioral Health Services to provide M/SU treatment to hom eless veterans. Greater Cincinnati will contract with local providers to conduct outreach programs and refer homeless veterans to M/SU treatment ( Cincinnati.com, 10/6 ) . Richland County Cuts Employee Health Benefits: On October 6, the Richland County Commissioners voted to decrease the county222s contribution to the Voluntary Employees Beneficiary Association (VEBA), the county222s employee health fund. The commissioner s cut annual county contributions from $1000 for families and $500 for individuals to $600 and $300 respectively. The county initiated the contributions in 2005 ( Mansfie ld News Journal, 10/7 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 13, 2009 10/13/09 8 Oregon Land Use Board to Allow Construction of Residential Community for Recovering Substance Abusers : The Oregon Land Use Board of Appeals ruled October 6 to dismiss an appeal by East Medford residents to block the construction of a residential community for individuals previously treated for substance abuse. The board found that the residents failed to file the appeal within the allotted time. As a result, OnTrack will proceed with its plans to construct the $28 million residential facility next spring. The facility, called Generations, will pair seniors with young families of former substance abusers who have been clean for two years or more ( KDRV, 10/6 ). Pennsylvania Gov ernor Signs Budget Cutting Hospital Funding and Increasing CHIP Funding; Releases Delayed Provider Payments : On October 9 , Governor Ed Rendell (D) signed a $27.8 billion state budget ending the state222s 101 - day budget impasse (Financing News Pulse 9/22, 8/10, 7/6 editions). The budget uses $2.6 billion in ARRA funding and $755 million from the state222s 223Rainy Day224 fund as well a s imposing a new tax on 223little cigars224 and increasing the exis ting cigarette tax. The budget cuts hospital funding by $40.7 millio n; however, the cut is significantly less than the $280 million previously proposed. In addition, the budget increases CHIP funding by $10 million to $97 million. With the passage of the budget, the Pennsylvania Treasurer222s Office began issuing payments for health and human services programs and schools across the state whose payments have been delayed due to the impasse ( Wall Street Journal, 10/9 ; Pittsburg Business Times, 10/12 ; Pittsburgh Post Gazette, 10/13 ). Tennessee Governor Estimates State222s Costs Under National Health Reform : On October 6, Governor Phil Bredesen (D) said that state estimates indicate that national health care reform legislation will cost Tennessee between $571 million and $1.19 billion over five and a half years, depending on the nature of the legislation passed. The governor estimated that reform would cost the state about $735 million but noted that a requirement to reimburse health care providers at Medicare rates or a requirement that health exchange plans offer pharmacy benefits equivalent to Medicare Prescription Drug Benefit Program (Part D) benefits would significantly increase state costs ( AP, 10/7 ; Commercial Appeal, 10/6 ). The governor222s announcements came before the Congressional Budget Office (CBO) released its score of the U.S. Senate Finance Committee222s health care reform bill, the America222s Health Future Act of 2009 (Financing News Pulse 10/9 edition). Virginia Poll Finds Little Support for National Health Care Reform : A Mason - Dixon Polling and Research Inc. poll, conducted October 6 - 8, found that 49 percent of respondents oppose President Obama222s health care reform plan while 39 percent support it. The poll also found that 57 percent of respondents oppose a public plan and 48 percent oppose an individual health care mandate. T hose health reform components were supported by 30 percent and 39 percent of respondents respectively. Like the national polls, the Virginia poll found both partisan and age - based divisions. In addition to polling better among Democrats, health care reform was also more popular among the young, with only 30 percent of Virginia seniors supporting the plan ( Virginia Pilot, 10/13 ; Kaiser Health News, 10/13 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 13, 2009 10/13/09 9 Wisconsin State Legislators Introduce Bill Requiring M/SU Parity for Small Group Health Plans : On October 7, Senator Dave Hansen (D) and Rep. Sandy Pasch (D) proposed the Wisconsin Mental Health and Substance Abuse Parity Act . The proposed legislation would expand the coverage guaranteed under the federal Wellstone - Domenici Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA), which does not mandate M/SU coverage but requires that all employer - sponsored group health plans with 51 or more employees that offer M/SU coverage to do so on an equal basis with general health care. Wisconsin222s law would require the same parity between M/SU and general health care coverage from small employer p lans . The Wisconsin Legislature will likely not take up the issue until the spring; however, Rep. Pasch believes that bill has a good chance of passing with bipartisan support ( AP via Chicago Tribune, 10/7 ; Badger Herald, 10/8 ; WKOW, 10/7 ). Poll Finds Residents Evenly Split on Health Reform, Many Confused: A poll conducted by the University of Wisconsin222s Department of Political Science and the Wisconsin Policy Research Institute found that about 37 percent Wisconsin residents oppose President Obama222s health care reform plan , 28 percent support it , and 35 percent report not knowing enough about it to have an opinion. About half of respondents said the main goal of health care reform should be cutting costs, 26 percent said the goal should be insuring all Americans , and 16 percent believe that the main goal should be improving health care quality ( Business Journal of Milwaukee, 10/5 ).
