WeeklyFinancingNewsPulsefinal20090306.pdf (PDF | 336.58 kb)
SAMHSA222s Weekly Financing News Pulse March 6, 2009 3/6/09 1 This Week 222 s Trends Hospitals in seven states (AZ, CA, CO, GA, NE, NJ, NY) have been forced to close, eliminate programs or layoff employees as governors eye hospitals as a potential key to addressing budget woes. Eight states (AL, DE, GA, HI, ID, NY, RI, WA) report using first - round Medicaid Stimulus funds to fill budget shortfalls. Many states (CO, FL, LA, MI, MO, OH, WA, WV) plan health care expansions despite economic downturn. Four states (AR, IA, NE, UT) have considered or will expand SCHIP programs. Additionally, two states (OK, UT) are considering laws which would expand the availability of private insurance for needy citizens and four states (CT, MD, WA, WI) have universal health care bills under consideration in their legislatures. B ehavioral h ealth f aces c uts, l ayoffs, and c losures in 10 states (CA, GA,IL, IA, NV, NC, OH, OR, PA, VT) National Health Financing News President Obama Nominates HHS Secretary and N ames Director of White House Office for Health Reform President Obama Hosts Health Care Summit President Obama Open to Health - Reform Board Senator Baucus on Health Reform Community Health Centers to Receive Stimulus Funding, Possibly More Lawmakers Introduce Legislation to Raise Lifetime Health Insurance Caps President Obama222s Health Plan Likely to Require Influx of Federal Workers Senators Propose Bill Allowing Prescription Drug Reimportation Families USA Reports that Many U.S. Residents Under 65 Lacked Health Insurance Over The Past Two Years Survey Says Employers Will Reduce Contributions to Employee Health Care in 2010 Department of Veterans Affairs (VA) Health News Senator Grassley to Introduce Legislation Modifying Not -F or - Profit Hospitals222 Executive Pay Report Says Hospital Profits Dropping Medicare Payment Advisory Commission (MedPAC) Issues 2010 Medicare Spending Recommendations Insurers Oppose President Obama222s Proposed Competitive Bidding for Medicare Advantage (MA) Lack of Federal Implementation Guidelines May Delay Stimulus222 COBRA Subsidy WellCare Reports Net Loss, Expects Co ntinued Decline Around the Hill: Hearings on Health Financing Around the States: State and Local Behavioral Health Financing News Alabama California Colorado Connecticut Florida Georgia Hawaii Illinois Iowa Kansas Louisiana Maine Maryland Massachusetts Michigan Minnesota Missouri Montana Nebraska New York North Carolina Ohio Pennsylvania Rhode Island South Carolina South Dakota Texas West Virginia Wisconsin For questions or comments, please contact Sarah Wattenberg (sarah.wattenberg@samhsa.hhs.gov). SAMHSA222s Weekly Financing News Pulse March 6, 2009 3/6/09 2 National Health Financing News President Obama Nominates HHS Secretary and Names Director of White House Office for Health Reform: President Barack Obama nominated Kansas Governor Kathleen Sebelius (D) as Secretary of the Department of Health and Human Services (HHS) and appointed Nancy - Ann DeParle as Director of the White House Office for Health Reform. Governor Sebelius was the Kansas Insurance Commissioner prior to becoming governor. DeParle previously served as the Commissioner of the Tennessee Department of Human Services, worked at the Office of Management and Budget, and headed the Health Care Financing Administration (now the Centers for Medicare & Medicaid Services) under Clinton. She currently serves on the boards of several health - related companies ( Kaiser Daily Health Policy Report, 3/3 ; New York Times, 3/2 ). President Obama Hosts Health Care Summit: President Obam a hosted a health care summit at the White House Thursday for consumers, providers, business, labor, insurers, drug companies, and lawmakers to take initial steps towards reaching an agreement on health care reform ( Kaiser Daily Health Policy Report, 3/5 ). President Obama did propose a detailed plan as he did during the presidential campaign but, instead, made it clear that he was open to any option which expanded health coverage while curtailing health spending. Lawmakers say the summit was largely a ceremonial kickoff which will be followed by legislative work and health care forums around the country ( Washington Post, 3/6 ; New York Times, 3/6 ). President Obama Open to Health -Reform Board : Peter Orszag, director of the White House Office of Management and Budget, said Sunday that President Obama would consider a health care board or commission to take some power away from Congress and de - politicize the issue of health care reform. Orszag said that the President is committed to health reform and that it is too soon for him to favor any particular idea ( Politico, 3/1 ). Senator Baucus on Health Reform: Senate Finance Committee Chairman Max Baucus (D - MT) announced this week that he intends to have comprehensive health care reform legislation ready for congress before the August recess. Senator Baucus did not offer details of his planned legislation but said that it would be a blend of public and private insurance options and that it would not expand the federal deficit. The Senator also said that he will consider taxing health benefits ( Kaiser Daily Health Policy Report, 3/4 ; AP, 3/3 ; Reuters, 3/3 ). Community Health Centers to Receive Stimulus Funding, Possibly More: When he announced his nomination for HHS Secretary and Director of the White House Office for Health Reform, P resident Obam a highlighted the allocation of $155 million in federal stimulus funds for community health centers as a way of diverting Americans from more costly hospital- based health care ( Reuters, 3/2 ). In addition, House Majority Whip James Clyburn (D - SC) introduced a bill last week to quadruple the number of community health centers through $26 billion in federal funding possibly from President Obama222s health care reserve fund. Senator Bernie Sanders (I - VT) introduced s imilar legislation in the Senate ( Kaiser Daily Health Policy Report, 3/3 ). Lawmakers Introduce Legislation to Raise Lifetime Health Insurance Caps: Representatives Anna Es hoo (D - CA) and Jim Langevin (D - RI) and Senators Byron Dorgan (D - ND) and Olympia Snow (R - ME) introduced legislation in the House and Senate to raise the lifetime health insurance cap to $10 SAMHSA222s Weekly Financing News Pulse March 6, 2009 3/6/09 3 million. They say the legislation will keep more people out of state Medicaid programs and save the public money ( Kaiser Daily Health Policy Report, 3/3 ). President Obama222s Health Plan Likely to Require Influx of Federal Workers: President Obama222s fiscal year 2010 budget proposal proposes vast federal expansions in areas like health care and highlights reduced use of private - sector contractors spurring independent estimates that his budget will require 100,000 to 250,000 new feder al employees. Government officials say it is too early to forecast human capital requirements; however the Department of Veterans Affairs anticipates hiring 17,000 new employees by the end of 2009 to carryout President Obama222s goal of enhancing health car e for veterans ( Kaiser Daily Health Policy Report, 3/3 ). Senators Propose Bill Allowing Prescription Drug Reimportation: Senators Byron Dorgan (D - ND), John McCain (R - AZ) , and Olympia Snow (R - ME) have proposed legislation (SB 525) allowing the reimportation of lower- cost prescription drugs from other countries. The bill is expected to save the U.S. $50 billion over 10 years, including $10 billion in savings for the federal government. The sponsors expect the bill will pass because President Obama222s budget proposal suggests that he strongly backs the policy ( Kaiser Daily Health Policy Report , 3/5 ; Bloomberg, 3/4 ) Families USA Reports that Many U.S. Residents Under 65 Lacked Health Insurance Over The Past Two Years : Families USA examined data from the U.S. Census Bureau and the Agency for Healthcare Research and Quality and found that one - third of U.S. residents below age 65 - - a total of 86.7 million individuals 227 lacked health insurance at some point over the past two years. Over half (52 percent) of those individuals were in families at or below 200 percent of the federal poverty level ( Kaiser Daily Health Policy Report, 3/5 ). The full report is available on the Families USA website . Survey Says Employers Will Reduce Contributions to Employee Health Care in 2010: A Hewitt Associates survey of large employers found that two - thirds of employers are seeking ways to reduce their contributions to employees222 health care costs and four percent are planning to discontinue health benefits completely. According to the survey, workers are likely to see their annual share of health insurance premiums increase eight percent in 2009 and even more in 2010 ( Kaiser Daily Health Policy Report, 3/5 ). The survey results are available on the Hewitt Associates website . Department of Veterans Affairs (VA) Health News: The VA will begin implementing a law passed in 2006 which will pay for nursing home care for veterans with a 70 percent or higher service - rated disability. In addition, the VA secretary said that he will take on the backlog of disability claims and work to ensure improved treatment for PTSD and traumatic brain injury ( Kaiser Daily Health Policy Report, 3/5 ). Senator Grassley to Introduce Legislation Modifying Not -For-Profit Hospitals222 Executive Pay : Senate Finance Committee ranking member Chuck Grassley ( R- IA) plans to submit legislation to regulate executive pay for presidents of non - profit hospitals. Federal rules currently make it the responsibility of the Internal Revenue Service to prove that an executive222s salary is excessive but Senator Grassley is considering placing the obligation on hospital boards to prove that executive salaries are justified ( Kaiser Daily Health Policy Report, 3/4 ). Report Says Hospital Profit s Dropping: According to a report by Thomson Reuters Healthcare, the median profit margin for U.S. hospitals is now zero and more than half of the 400 hospitals included in the study were losing money. Hospitals face compounded financial troubles in the c urrent economic SAMHSA222s Weekly Financing News Pulse March 6, 2009 3/6/09 4 climate because the value of their investments declines while they receive fewer charitable donations and treat fewer paying patients and a greater number of charity care patients ( Reuters, 3/2 ; Los Angeles Times, 3/2 ). The report is available on the Thomson Reuters website . Medicare Payment Advisory Commission (MedPAC) Issues 2010 Medicare Spending Recommendations: MedPAC, an independent Congressional agency advising Congress on Medicare, issued a report Friday highlighting spending recommendations for Medicare in 2010. Among other proposals, the report suggests cutting home health care provider reimbursements by 5.5 percent, implementing a quality incentive program for hospitals, increasing payments to primary care providers, decreasing payments to private insurers running Medicare Advantage plans, and paying Medicare Advantage plans the same as fee - for - service plans( Kaiser Daily Healt h Policy Report, 3/2 ). The full report is available on the MedPAC website . Insurers Oppose President Obama222s Proposed Competitive Bidding for Medicare Advantage (MA): A spokesman for A merica222s Health Insurance Plans said that President Obama222s plan forces seniors and MA to pay too great a share of the total cost of health reform. A lobbyist for BlueCross BlueShield said they will strongly oppose the measure which could mean premium increases and benefit cutbacks for MA beneficiaries ( Kaiser Daily Health Policy Report, 3/4 ) Lack of Federal Implementation Guidelines May Delay Stimulus222 COBRA Subsidy : The Obama Administration has not yet provided employers with the detailed instructions they need to fully implement the COBRA provisions included in the economic recovery legislation (Financing News Pulse 2/20 edition). Employers say they are awaiting in structions from the Internal Revenue Service and the Department of Labor. Both entities began posting information about the new federal COBRA subsidy on their websites late last week ( Kaiser Daily Health Policy Report, 3/2 ). WellCare Reports Net Loss, Expects Continued Decline : WellCare reported a net loss of $5.7 million for the first nine months of 2008 and expects to report earnings between $5 million to $11 million for 2008. The company forecasts that 2009 net earnings will be lower than 2008 earnings. WellCare has been affected by the economic conditions as well as Medicaid rate changes and increased Medicare costs ( Tampa Bay Business Journal, 3/3 ). Around the Hill: Hearings on Health Financing House and Senate Veterans222 Affairs Committee s : Legislative Presentations of Veterans222 Service Organizations 10 a.m. March 5, 106 Dirksen 10 a. m. March 12, 106 Dirksen 9:30 a.m. March 18, 334 Cannon House Veterans Affairs Subcommittee on Health: Veterans222 Health Bills 10 a.m. March 3, 334 Cannon House Appropriations Subcommittee on Defense: Defense Psychological Health and Traumatic Brain Injury Programs 10 a.m. March 3, H - 140 Capitol Senate Special Aging Committee: Health Care Revision and the Elderly 10 a.m. March 4, 562 Dirksen SAMHSA222s Weekly Financing News Pulse March 6, 2009 3/6/09 5 Senate Veterans222 Affairs Committee: Fiscal 2010 Budget: Veteran222s Programs 9:30 a.m. March 10, 418 Russell Senate Finance Committee: Fiscal 2010 Budget: Health Care Proposals 10 a.m. March 10, 215 Dirksen House Education and Labor Subcommittee on Health, Employment, Labor, and Pensions : Strengthening Employer - Based Health Care 10:30 a.m. March 10, 2175 Rayburn House Veterans222 Affairs Committee: Fiscal 2010 Budget: Veteran222s Programs 2 p.m. March 10, 334 Cannon Around the States: State and Local Behavioral Health Financing News Alabama Medicaid Program Receives First Round of Stimulus Funding : This week Alabama received $169 million of the anticipated $3 billion the state will receive in Medicaid assistance through the stimulus bill. The state222s Medicaid commissioner says the money will help the program maintain current levels of funding and allow the state to divert money from General Fund to other needy state programs ( AP via MSNBC, 2/27 ). California Residents to Vote on Proposition to Use Mental Health Funds for Federal Children222s Program : Among th e ballot initiatives which California voters must approve for the current budget to take effect is a measure which moves money from the state222s 223Prop. 36224 mental health fund to a federally - mandated program for low - income children. The ballot initiative, P roposition 1E, authorizes the use of $226 million in fiscal year 2010 and $234 million in fiscal year 2011 to fund the Early Periodic Screening, Diagnosis and Treatment Program for children ( California Healthline, 3/2 ; Santa Clarita Valley Signal, 3/2 ). Mental Health Advocates Sue over Proposition 1E Ballot Measure : Two prominent mental health advocates have filed a lawsuit alleging that the wording of Proposition 1E is 223false and misleading.224 The lawsuit alleges that the proposition222s title and summary does not clearly state that Prop. 1E would shift fundin g which the voters allocated in 2004 and, instead, misleadingly implies that mental health funding will be guaranteed. A hearing is scheduled for Thursday ( California Healthline, 3/4 ; Sacramento Bee, 3/4 ) San Luis Obispo County to Receive Additional Mental Health Funding : San Luis Obispo County222s share o f the Proposition 63 mental health fund is scheduled to increase by $2 million annually to fund prevention and early intervention programs. The county currently receives $6.2 million annually for community services and support aimed at more intensive ment al health services frequently delivered through Medi - Cal, the state222s Medicaid program ( San Luis Obispo Tribune, 2/28 ). El Dorado County to Cut Mental Health Staff, Change Services D ue to Budget : El Dorado County222s Mental Health Division is expecting a $2.4 million shortfall by the end of the current fiscal year and will reduce its staff by 10 percent 227 from 100 to 90 full-time employees227 and continue a trend started this year to shift from individual therapy to group therapy, drop - in services, and peer support ( Sacramento Bee, 3/3 ). SAMHSA222s Weekly Financing News Pulse March 6, 2009 3/6/09 6 California Community Health Centers Receive Stimulus Funding, Expand Mental Health Treatment : T welve community health centers in California will receive New Access Point grants as part of the federal stimulus package. The new federal funding is expected to create 600 new jobs and provide health services to an additional 80,890 needy residents of Ca lifornia. Axis Community Health, one of the 12 centers funded in California, will receive $1.3 million which it will use to expand general medical and behavioral health services and maintain longer hours at its facilities ( Pleasanton Weekly, 3/4 ). Colorado Governor Proposes Plan to Extend Health Coverage to 100,000 Uninsured: Governor Bill Ritter (D) announced a plan to collect hospital fees generating $1.2 billion to insure anothe r 100,000 residents. The fee is expected to generate roughly $600 million from hospitals and another $600 million in federal matching funds and is structured in such a way to prevent hospitals from passing their share of the cost on to their patients ( Kaiser Daily Health Policy Report, 3/2 ; Denver Post, 2/27 ). Connecticut Stimulus Funds will be Used to Build Clinic in Putnam : Generations Health Clinic will receive $1.2 million in stimulus funding to build a family health center providing medical, dental, and behavioral health services. The funds come as part of a national initiative to boost community health care for the needy ( Norwich Bulletin, 3/3 ). Florida Inspector General Investigates Medicaid Abuse in Miami - Dade : The Florida inspector general began investigating about one - third of the Medicaid home health care providers in the county in connection with millions of dollars in fraud and abuse. Miami- Dade has 20 percent of the state222s Medicaid population but accounts for 90 percent, o r $55 million, of all home health care covered by Florida222s Medicaid program. The inspector general222s office could did not estimate the cost of the fraud; however, officials say that home health care agencies in the county recruit patients for unnecessary in - home care through offers of cash or household chores ( Miami Herald, 3/5 ). Update: Bill to Limit Federal Funding for Medicaid Pilot Filed: Legislators introduced a bill this we ek to prohibit Florida222s Agency for Health Care Administration from receiving CMS funds for the state222s pilot Medicaid privatization program, which serves most Medicaid beneficiaries in five counties ( AP via ABC, 3/2 ). The deadline to end the pilot program has passed so this was the only legislative avenue available to curb the program. The bill comes in response to overwhelmingly negative feedback about the state222s pilot program ( Financing News Pulse 2/27 and 1/30) ( Jax Daily, 3/3 ; Kaiser Daily Health Policy Report, 3/4 ). Georgia Governor Proposes Cut to Hospital Medicaid Reimbursements : Having proposed a hospital and insurance provider fee which was rejected by the Legislature, Governor Sonny Perdue (R ) is now proposing a 10 percent reduction in hospital Medicaid reimbursement rates to save the state $80.7 million. Hospital and patient advocates say the cuts, which would total $120 million including lost federal matching funds, would deal an enormous blow to hospitals222 ability to provide care to Medicaid patients. Georgia is slated to receive $208 million in federal Medicaid funding through the stimulus; however, the money is expected to be used for non - Medicaid expenses ( Atlanta Business Chronicle, 3/4 ) SAMHSA222s Weekly Financing News Pulse March 6, 2009 3/6/09 7 Hawaii Governor Proposes Budget, Cuts Employee Benefits, Uses Stimulus Medicaid Funds for General Fund: Governor Linda Lingle (R), facing a $75 million budget shortfall for the current fiscal year and a $650 million budget gap over the next biennium, has outlined a budget proposal which cuts neither services nor employees but transfers funds from the state222s tobacco settlement, relies on stimulus Medicaid funds to supplant s hortfalls in the state222s General Fund, and cuts state employee benefits. The Governor is working through collective bargaining to increase the employees222 share of health costs to save the state $48 million annually; however, because the plan requires collective bargaining, few details are currently available ( KGMB, 3/4 ; Honolulu Advertiser, 3/5 ) State Employee Health Insurance Premiums to Increase Nearly 30 Percent : The Hawaii Employer- Union Employees Health Benefits Trust Fund commissioned a study determining that, to maintain current levels of coverage, the 225,000 government workers, retirees, and dependents on the state222s health insurance plan must pay 29.4 percent more in premiums. The employee222s union and the government must resolve the increase at a meeting later this month or negotiate contract extensions with the health insurance companies with which Hawa ii contracts ( Honolulu Star Bulletin, 3/2 ). Illinois Legislature Approves Plan to Borrow Money for Five- Year Hospital Assessment: The Illinois Legislature approved a measure borrowing $510 million from special state funds for a five - year assessment program to draw down additional federal Medicaid funds for hospitals. Approximately $355 million will come from a fund dealing with the retirement of general obligation bonds and $175 million will come from the State Employees222 Retirement System fund. The money would be repaid to the funds by April 14 and state o fficials say the plan will enable Illinois and state hospitals to collect $4.5 billion for Medicaid. Governor Pat Quinn (D) plans to sign the bill ( Kaiser Daily Health Policy Report, 3/3 ; GateHouse via Peoria Journal Star, 2/26 ). Iowa Iowa to Expand Children222s Health Care Through Stimulus Funding : As part of the funding Iowa will receive through the federal stimulus bill, the state will raise the eligibility ceiling for Hawk - I, the state222s health insurance program for children that do not qualify for Medicaid. Iowa will use the federal funds to raise the eligibility cap from 200 percent of the federal poverty level to 300 percent ( AP via Chicago Tribune, 2/28 ). Kansas Lawmakers Consider H ow the Governor222s Departure Will Affect Kansas : Legislators in Kansas wonder Governor Kathleen Sebelius222 (D) departure for her new position as secretary of HHS will affect the state budget process. Governor Sebelius has already proposed her budget, which his currently in mark up. H owever Senate Republicans are seeking to cut $600 million in proposed spending. Opinions about the Governor222s departure fall largely along party lines, with Democrats saying her departure will be relatively streamlined and Republicans more vocally referring to it as a 223disruption224. The Governor does not plan to withdraw as Governor until she has been confirmed by the U.S. Senate so state officials do not yet know when the gubernatorial transition will take place. Lt. Governor Mark Parkinson will assume t he Governor222s post should Governor Sebelius be confirmed as HHS secretary ( Wichita Eagle, 3/3 ). SAMHSA222s Weekly Financing News Pulse March 6, 2009 3/6/09 8 Louisiana Governor Plans to Cut Medicaid Provider Reimbursement Rates : The Secretary of Louisiana222s Department of Health and Hospitals said that, in an effort to close the state222s budget shortfall, Governor Bobby Jindal (R) will propose cutting payment rates for Medicaid providers rather than eliminating programs or restricting eligibility. Details of the plan will not be available until the Governor officially presents his budget to the Legislature next week; however, health care advocates and providers are already arguing that, given that Medicaid reimbursement rates fail to cover current costs, provider rate - cuts will result in service reductions ( AP via Forbes, 3/4 ) Maine State222s Budget Cuts Violate Mental Health Compliance Agreement : A report filed by a state - court - appointed ana lyst found that Maine222s budget cuts violate the state222s obligations to 12,000 mentally ill residents. The Department of Health and Human Services has yet to comment on the report ( AP via Sea Coast Online, 3/5 ) Maryland Proposed Plan Would Extend Health Care to All State Residents: Healthy Maryland, a proposed universal health coverage plan developed by CareFirst BlueCross BlueShield and state lawmakers, would create a health ins urance pool including members of the state222s high - risk health plan, individuals covered by commercial insurers, and the state222s non - Medicaid - eligible uninsured. The plan, estimated to cost $1.6 billion, would also eliminate the state222s individual health insurance market; penalize insurers, individuals, and businesses that did not participate in the plan; and mandate health coverage for all residents. Lawmakers do not expect the bills (HB 860 and SB 515) to pass this year but view this as a test - balloon for future universal health care coverage legislation ( Baltimore Business Journal, 3/3 ). Mental Health Faces Cutbacks Despite Stimulus: Despite the influx of federal stimulus funding Maryland222s Department of Health and Mental Hygiene is requesting additional funding because Governor Martin O222Malley222s (D) budget proposal freezes or otherwise limits rates paid by the state to mental health service providers. The Governo r222s plan also moves mental health patients out of state mental hospitals and into private facilities ( Baltimore Sun, 3/2 ). Maryland Lawmakers Seek to Recruit and Retain Physicians for Rural Areas: State lawmakers are seeking ways to encourage physicians to practice in rural areas where the state currently has a shortage of health care professionals. Methods under consideration include: expanding loan forgive ness programs for primary care physicians that agree to practice in rural Maryland, establishing minimum reimbursement rates for certain procedures, and developing a rural residency program based on the notion that many doctors practice in the geographic a reas where they do their residency ( Kaiser Daily Health Policy Report, 3/3 ). Massachusetts New Insurer Submits Lowest Bid for MA222s Commonwealth Care Program : Caritas Christi Health Care and Centene partnered to submit the lowest of five bids to contract with the Commonwealth Care program, the state222s low or no - cost health insurance program which insures 163,600 beneficiaries. If Caritas - Centene222s bid is approved on Ma rch, 12 beneficiaries will automatically switch to the new insurer unless they specifically request another plan ( Kaiser Daily Health Policy Report, 3/2 ). Health and Human Services Cuts Expected Next Year Despite Budget Increase: Despite increasing the budget for the Department of Pubic Health222s human services by 2.4 percent to $13.7 billion next year, SAMHSA222s Weekly Financing News Pulse March 6, 2009 3/6/09 9 the department expects to layoff 130 employees. In addition, the Depart ment of Mental Health will receive a $50 million cut from original fiscal year 2009 levels under Governor Deval Patrick222s (D) proposal ( State House News Service via Wicked Local, 3/4 ) Michigan Michigan Health Centers Surprised to Receive Stimulus Funds : The White House announced that Ingham and Wayne counties will each receive $1.3 million to fund community health clinics serving needy populations. Officials from both counties reported that they were surprised by the funding but say they will add county health jobs and, in one case, create a new satellite community health unit ( Michigan Messenger, 3/3 ). Minnesota Health Agency Receives HHS Funding : The Southwestern Mental Health Center of Worthington is one of the 25 Minnesota agencies which will receive federal HHS fun ding through the 2009 Omnibus Appropriations Bill (Financing News Pulse 2/27 edition). The health center will receive $190,000 to help build a new mental health facility in Worthington. Health center officials say they were surprised to learn that the age ncy had received the funding ( Worthington Daily Globe, 3/4 ) Missouri Missouri Received First Round of Stimulus Funding, Created Special Funds : Last week Missouri received $223 mi llion as part of the first round of federal stimulus payments. The state deposited the money into the Federal Budget Stabilization Fund, one of two funds Missouri created to ensure that federal stimulus funds are properly spent and easily tracked ( St Louis Business Journal, 2/26 ). Montana Veterans222 Health Care Still Problematic in Montana : A meeting of the Senate Veterans222 Affairs Committee highlighted the difficulties that large and sparsely populated states have in treating veterans, especially those with mental health problems. Veterans make up roughly 11 percent of Montana222s population; however, because the state is so sparsely populated, veterans have limited access to mental health care. The Veterans Administration is pursing 223telehealth224 solutions whereby patients keep in contact with or receive examinations from physically distant health professionals; however, telehealth offers relatively little help to veterans with mental health conditions like PTSD which often require in- person diagnoses and treatment ( Great Falls Tribune, 2/27 ). Nebraska Nebraska Receives First Round of Medicaid Funds : Nebraska received about $38 million in federal Medicaid funds as part of the stimulus package late last week. The state is slated to receive $227.7 million in additional Medicaid funding through 2010 ( AP via FOX, 2/28 ). Layoffs Force Hospital to End Some Mental Health Programs : Good Samaritan Hospital in Kearney was forced to close a mental health program for teen girls as a result of 35 lay - offs and declining revenue. The facility has been losing money for two years and is expected to lose $2.7 million this year ( KHAS FOX, 3/4 ). New York State222s Medicaid Program Paid $28 Million f or Non- Residents : An audit of the New York Department of Health found that the state paid $28 million in Medicaid payments for 20,000 residents of other states between 2004 and 2008. Roughly half of the money was paid in managed care premiums and the othe r SAMHSA222s Weekly Financing News Pulse March 6, 2009 3/6/09 10 half was in fee - for - service payments. The New York Inspector General is moving to recoup all of the money ( AP via Newsday, 3/3 ; Kaiser Daily Health Policy Report, 3/5 ). Mayor Bloomberg Says State Keeping Too Much of the Federal Medicaid Assistance : Governor David Patterson (D) will keep 76 to 80 percent of the mon ey allocated to New York in the Medicaid portion of the stimulus package and will allocate a total of $1.9 billion to New York City. Mayor Michael Bloomberg (I) says the city, which treats the majority of the state222s Medicaid patients, is owed between $2. 1 and $2.8 billion. New York is one of a small number of states which require cities and counties to pay for the state Medicaid program ( Reuters, 3/5 ; New York Times, 3/5 ). North Carolina SAS to Support New Medicaid Information Management : As part of a CSC - led team SAS will replace North Carolina222s Medicaid Management Information System (MMIS). In addition to managing the state Medicaid program222s calls, prior authorizations, claims processing, pharmacy operations, and medical policy reviews, the new system will support and manage other state health agencies222 records. CSC won the seven - year, $265 million contract in January ( PR Newswire, 3/2 ). Ohio Hospitals and Nursing Homes Object to Proposed Medicaid Fees: Governor Ted Strickland222s (D) proposed budget would charge fees to the state222s hospitals, nursing homes, mental health treatment facilities, and managed - care companies. Together the fees would bring in $1.3 billion annually which the Governor222s Administration says would free up state funds for other uses. Hospitals, however, say that the fees will result in job losses, higher patient costs, and facility closures. The fees would be 1.27 percent of operating costs for the first fiscal year and 1.37 percent the following year ( Columbus Dispatch, 3/1 ). Mental Health Board Faces State Budge t Cuts: The Mental Health and Recovery Services Board of Seneca, Sandusky, and Wyandot counties is facing a $415,000 budget cut from the state and is working to ensure that the cuts will not limit services to county residents. The board is seeking to make administrative cuts; however, they are already operating with minimal staff ( Advertiser - Tribune, 3/1 ). Universities Receive Mental Health Grant: The Northeastern Ohio Universities of Medicine and Pharmacy received a $5 million grant from the Margaret Clark Morgan Foundation this to establish best practices for treating schizophrenia and to train health professionals in mental health services delivery ( Kent News Net, 3/3 ). Pennsylvania Health Insurance Tax Unlikely to Pass Senate: Governor Ed Rendell222s ( D) proposed two percent assessment on health insurers is unlikely to pass the State Senate according to key lawmakers. The assessment would draw down additional federal matching funds yielding Pennsylvania roughly $1 billion annually ( AP via In York, 3/2 ). Rhode Island Update: Governor Cancels Plan for Medicaid Consultant : Governor Carcieri (R) had previously stated that, as part of the implementation of Rhode Island222s Global Medicaid Waiver, he would hire a consultant to help reshape and staff the program. Instead, Governor Carcieri has elected to suspend the RFP and use state staff to modify the program. The Governor222s Administration acknowledges that the state does not yet have sufficient staff for the task and that they have yet to fill all of the health - related SAMHSA222s Weekly Financing News Pulse March 6, 2009 3/6/09 11 jobs that the Governor promised to fill ( Providence Journal, 3/2 ). The Carcieri Administration announced that it will post 49 job openings by April 1, tighten nursing home eligibility standards by June 1, implement new 223selective contracting224 by July 1, and create an assessment and coordination unit to manage long- term care by August, 1 ( Providence Journal, 3/3 ; Kaiser Daily Health Policy Report, 3/4 ). South Carolina Update: State222s Medicaid Cuts to be Restored Through Stimulus Funding : Nearly all of the cuts to South Carolina222s Medicaid program proposed as a result of state budget cuts will be reversed with $178 million in federal stimulus funds which the state cannot receive without resto ring the benefits (Financing News Pulse 2/27 edition). The only Medicaid cut which is expected to remain is coverage for over - the - counter cough and cold medicine ( Post and Courier, 3/5 ). South Dakota South Dakota to Receive Medicaid Stimulus Funding, Advocates Seek Rate Increases : South Dakota is slated to receive about $100 million for the state222s Medicaid program which officials say will help offset the increased demand on the program during the economic downturn. One - in - seven state residents already receive health insurance through Medicaid. Health care advocates plan to lobby to increase Medicaid provider reimbursements while Governor Mike Rounds (R) has proposed eliminating a 1.5 percent inflation adjustment for health care providers to save the state $5.5 million ( AP via KMEG, 2/27 ; Argus Leader, 2/27 ). Texas Nursing Home Advocates Urge Increases in Medicaid Payments : Texas ranks 49th in the country in average Medicaid nursing home reimbursements and hospitals as well as patient advocates say that, in many cases , Medicaid does not cover the cost of care. As a result, advocates are lobbying the state to use federal stimulus funds to increase Medicaid reimbursement rates. Nearly two - thirds of Texas222 90,000 nursing home residents are on Medicaid ( Dallas Morning News, 3/4 ). West Virginia West Virginia Plans Medicaid Expansion: The state222s Department of Health and Human Resources will move forward with Governor Joe Manchin222s (D) proposal to expand Medicaid eligibility for working adults. The state222s current plan covers adults with children in families earning up to 35 percent of the federal poverty level (FPL). The proposed expansion would extend benef its to childless adults earning up to 50 percent of the FPL and may eventually be increased to 100 percent of the FPL. The state does not yet have a cost estimate for the expansion ( Kaiser Daily Health Policy Report, 2/27 ). Wisconsin Governor222s Budget Upgrades Prison Mental Health Treatment: Governor Jim Dyole222s (D) proposed budget allocates $4.6 million to hire 113 staff for a women222s mental health facility slated to op en in 2011. The $11 million facility, approved as part of the state222s 2007 - 2009 budget, comes as a response to a U.S. Justice Department determination that Wisconsin222s women222s prison violated inmates222 constitutional rights. The Governor222s budget also includes $4.2 million for guards at the facility and additional staff for the already - functioning male - prisoner mental health facility ( Chicago Tribune, 3/2 ). Report Says Health Insurance Costs in Wisconsin will Skyrocket without Reform: A report released by Citizen Action of Wisconsin and prepared by the New America Foundation found that Wisconsin family health insurance premiums will increase 83 percent by 201 6 if the health care system is not reformed. The report predicts that, under the current system, health insurance will cost 45 percent of the median SAMHSA222s Weekly Financing News Pulse March 6, 2009 3/6/09 12 household income in 2016 ( Milwaukee Business Journal, 3/3 ). The full report is available on the Citizen Action of Wisconsin website .
