WeeklyFinancingNewsPulseStateandLocalEditionfinal20091216.pdf (PDF | 304.93 kb)
SAMHSA222s Weekly Financing News Pulse: State and Local Edition December 16, 2009 12/16/09 1 SAMHSA222s Weekly Financing News Pulse: State and Local Edition Alabama California Florida Georgia Iowa Kentucky Louisiana Maryland Michigan Minnesota Montana New Jersey New York North Carolina Oklahoma Pennsylvania South Carolina Texas Utah Washington Washington D.C. West Virginia To Subscribe to SAMHSA222s Weekly Financing News Pulse, please go to the following link and choose 223Health Care Financing224: https://service.govdelivery.com/service/multi_subscr ibe.html?code=USSAMHSA&origin=http://www.samhsa.go v/enetwork/success.aspx For questions or comments, please contact Kevin Hennessy ( kevin.hennessy@samhsa.hhs.gov ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition December 16, 2009 12/16/09 2 Around the States: State and Local Behavioral Health Financing New Alabama Medical Center to Expand Mental Health Treatment Facility : In January, Brookwood Medical Center in Birmingham will begin construction on a new 43 bed mental health clinic. The new clinic will increase the center222s mental health capacity to 138 beds ( Birmingham Business Journal, 12/9 ). California Update: CMS Questions California222s CHIP Funding Mechanisms : After the California Legislature and Governor Arnold Schwarzenegger (R) passed a measure to continue funding the state222s Children222s Health Insurance Program (CHIP) this fall, officials from the Centers for Medicare & Medicaid Services (CMS) are now questioning the legality of the new funding mechanisms. The program, Healthy Families, is now funded in part by a 2.35 percent tax on health insurers designed to raise $100 million; however, CMS222s Center for Medicaid and State Operations (CMSO) Director Cindy Mann said that the taxes may fail to meet federal regulations and require adjustments ( Los Angeles Times, 12/14 ; Kaiser Health News, 12/15 ). State Funds Contra Costa County Housing for Mentally Ill Homeless : The Contra Costa County Board of Supervisors has approved a request to seek developers to create a housing project for the county222s mentally ill homeless. The project, which is funded through $1.9 million from the state222s Mental Health Services Act , will create 12 to 20 homes and provide residents with additional support services ( Contra Costa Times, 12/13 ). Donation to Allow Santa Barbara Clinics to Provide Mental Health Services : A $450,000 donation from Mary Jane Brinton will allow the Santa Barbara Neighborhood Clinic to provide mental health services to lowincome residents in their medical home. The donation will fund the startup costs associated with the addition of mental health services and two years of services ( Daily Sound, 12/12 ). Florida Appeals Court Finds State Funding for Faith Based Substance Abuse Programs Unconstitutional : On December 15, Florida222s 1st District Court of Appeals overturned a 2008 circuit court ruling, finding that the state222s contract with two faithbased organizations to provide substance abuse rehabilitative services for inmates released from prison violates the state222s constitution. The court ruled that the contract with the two institutions, Prisoners of Christ and Lamb of God Ministries, violates a provision in the state222s constitution barring state aid to religious or sectarian institutions ( Tampa Tribune, 12/15 ). Legislative Report Estimates Cost of Proposed Health Care Mandate for Students at Public Colleges: The Florida Legislature222s Office of Program Policy Analysis and Government Accountability found that requiring all students at Florida222s public colleges to obtain health insurance would increase the cost of college by 5 to 7 percent for students who do not already have health coverage. The report notes that the legislature could impose the mandate in three ways. The state could follow the Florida State University (FSU) model, requiring all students to obtain minimal levels of coverage and offering an optional university plan, require students to obtain university provided coverage, or allow individual SAMHSA222s Weekly Financing News Pulse: State and Local Edition December 16, 2009 12/16/09 3 colleges to choose whether or not to require health coverage ( AP via Miami Herald, 12/11 ; Kaiser Health News, 12/14 ). State Releases Youth Substance Abuse Survey, Finds Mixed Results : The Florida Department of Children and Families (DCF) released the 2009 Florida Youth Substance Abuse Survey , finding that abuse of prescription pain killers and stimulants is down, though abuse of prescription depressants has increased slightly. In addition, the survey found that, though alcohol and tobacco use has declined, binge drinking and marijuana use have increased ( First Coastal News, 12/8 ). Citrus County Receives BJA Funding to Expand Mental Health Court : Citrus County was among 43 awardees to receive a Justice and Mental Health Collaboration Program grant from the Bureau of Justice Assistance (BJA) at the U.S. Department of Justice (DOJ). Citrus County will receive $235,647 to be matched by $116,798 of inkind services from local agencies. The funding will help the county expand its current mental health court to serve twice as many mentally ill offenders. In total, the BJA awarded approximately $8.7 million in grants ( Citrus County Daily, 12/10 ; BJA ). Georgia State Receives ARRA Funding for Medicaid EHRs : The Georgia Department of Community Health has received a $3.2 million American Recovery and Reinvestment Act (ARRA) grant from CMS to advance electronic health record (EHR) implementation among Georgia222s Medicaid providers. The grant will create a State Medicaid Health IT Plan that will outline incentive payments for Medicaid providers, set reimbursement methods for those providers, and determine the amount of incentive funds required by CMS. The funding will also fund a 223meaningful use224 tracking program and a marketing initiative designed to encourage Medicaid physicians to adopt EHRs ( Government Health IT, 12/9 ). Iowa Update: DHS Recommends Closing Mental Health Facility : After the Iowa Legislature asked the Iowa Department of Human Services (DHS) to select one of the state222s four mental health centers for closure, DHS Director Charles Krogmeier recommended that the state close Mount Pleasant222s 79bed mental health center, relocating its patients and many of its employees to the Independence Mental Health Institute approximately 100 miles away. The legislature seeks to close one of the state222s four mental health facilities to address funding issues and reduced utilization. The Mount Pleasant facility operates with an $8.8 million annual budget and has 108 employees; however, in Krogmeier222s report to the legislature, he notes that the move may only save $1.7 million annually after the first two years largely due to recurring patient expenses. However, a consultant for the state estimated that the move would save $1.9 million the first year and $27 million over five years. The Iowa Legislature will make the final determination regarding the closure when it convenes in January ( Des Moines Register, 12/15 ; AP via WCCO, 12/14 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition December 16, 2009 12/16/09 4 Kentucky New Substance Abuse Center to Open in Western Kentucky: By February 2010, Owensboro Regional Recovery is slated to open a new $4.3 million 100bed substance abuse rehabilitation center for men in Owensboro. Construction on the facility began in April ( AP, 12/9 ). Louisiana Correctional Facility to Become Substance Abuse Treatment Facility : A spokesperson for the Louisiana Department of Public Safety and Corrections announced that, in February, the Forcht Wade Correctional Center will become a substance abuse treatment facility for male offenders. The move, which is part of the state222s budget streamlining process, will save $1.8 million annually in facility operating costs by reducing beds and correctional staff. State officials do not believe that the transition will result in any state employees lay offs ( Shreveport Times, 12/14 ). Maryland DHMH Audits Find State Medicaid Program Overpaid $98 Million : Two Maryland Department of Health and Mental Hygiene (DHMH) audits found that the state Medicaid program overpaid roughly $98 million between July 2007 and March 2008 because computerized billing safeguards were disabled. In addition, the audits revealed that the state lost $3 million in federal matching funds because corrected claims were not submitted on time. The findings were presented at a legislative hearing on December 8 where lawmakers stressed the importance of recovering the funds given the state222s looming budget shortfall for the coming year ( Baltimore Sun, 12/9 ; Baltimore Business Journal, 12/8 ). Michigan Report Assesses Michigan222s Health Care Spending: A report released by the Center for Healthcare Research and Transformation assessed Michigan222s health care spending relative to other states. The report found that, in 2004, Michigan residents spent less than the national average on health care, ranking the state 36th. However, the report also found that the state222s Medicaid reimbursement rates were lower than average, ranking Michigan 44th among other states. Finally, the report found that Michigan spent more than average on Medicare, ranking 10th and spending $7,860 per enrollee ( Detroit Free Press, 12/14 ). Minnesota Update: Shifting GAMC Enrollees to MinnesotaCare Will Create Health Fund Deficit : On December 14, Governor Tim Pawlenty222s (R) Administration confirmed that the administration222s plan to transfer General Assistance Medical Care (GAMC) enrollees to MinnesotaCare would create a deficit in the state222s Health Care Access Fund by 2011. Democratic legislators have offered a plan to keep GAMC, restoring $292 million of the program222s former $396 million budget through federal and county funds, a surtax on hospitals and reduced GAMC reimbursement rates. The funding is designed to keep GAMC functioning until June 2011 when Minnesota Democrats hope that GAMC enrollees222 care would be funded by national health care reform programs. GAMC currently covers 36,000 childless adults earning up to $7,800 annually, many of whom have mental health and substance abuse conditions ( Minneapolis Star Tribune, 12/15 ; Kaiser Health News, 12/15 ; AP, 12/11 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition December 16, 2009 12/16/09 5 Montana Computer Problem and Understaffing Creates Healthy Montana Kids Backlog : Officials from the Minnesota Department of Public Health and Human Services are attributing a 1,500 person backlog for the Healthy Montana Kids program227a joint CHIP Medicaid expansion which began October 1227to a computer problem and unfilled staff positions. The state is delaying its official media campaign to publicize the programs222 increased eligibility and encourage enrollment until the system is fully functional. State officials say that the Healthy Montana Kids enrollment process is more complicated because it actually entails Medicaid and CHIP enrollment procedures and requires income level verification ( Missoulian, 12/10 ; Kaiser Health News, 12/11 ). New Jersey Senate Approves Three Bills to Improve Emergency Mental Health Care: The New Jersey Senate approved three bills ( AB 3582 , AB 3583 , AB 3584 ) designed to improve emergency mental health care. AB 3582/SB 2444 would require the New Jersey Department of Human Services (DHS) to develop a protocol to transfer mental health patients from emergency departments (EDs) to behavioral health settings after 24 hours in the ED while AB 3583/ SB 2445 would require DHS to develop safeguards to ensure that mental health patients in EDs receive screenings and referrals to behavioral health care. In addition, AB 3584/ SB 2446 would require the commissioners of DHS and the New Jersey Department of Children and Families (DCF) to develop an inventory of behavioral health services, create a methodology to quantify the use and needs for each service, and annually assess the availability of those services and their funding mechanisms. The bills now head back to the New Jersey Assembly for approval of the Senate222s amendments ( Asbury Park Press, 12/11 ; Politicker NJ, 12/10 ). New York Governor Delays $750 Million in Payments, Medicaid Affected : Governor David Paterson (D) announced plans to withhold $750 million in payments to local governments, schools, and health insurers to ensure that the state has sufficient cash on hand to pay its other bills. The local funding is expected to affect Medicaid providers because New York counties administer and fund part of the state222s Medicaid program ( Bloomberg, 12/14 ; Batavia Daily News, 12/15 ). State Opens 100Bed Correctional Mental Health Unit in Marcy : On December 15, the New York Department of Correctional Services and the New York Office of Mental Health opened a new 100bed unit for inmates with serious mental illness at the Marcy Correctional Facility. The unit is the result of a 2007 settlement reached between the state and a non profit disability advocacy organization ( Observer Dispatch, 12/15 ). North Carolina Group Sues DHHS Over Mental Health Cuts : Disability Rights North Carolina has filed suit against the North Carolina Department of Health and Human Services (DHHS) on behalf of two state residents, alleging that the state222s budget cuts will deny them access to the community based mental health services that allow them to live independently. DHHS222 $390 million budget for community services was SAMHSA222s Weekly Financing News Pulse: State and Local Edition December 16, 2009 12/16/09 6 cut by $65 to $75 million earlier this year. In addition, mental health advocates note that Medicaid budget cuts place the total service cuts closer to $500 million ( WRAL, 12/12 ). LME Elects to Take Temporary State Funding Cut, Cover Only Two Counties : County commissioners for Alamance and Caswell Counties have given permission for the Alamance Caswell behavioral health services Local Management Entity (LME) to accept a 10 percent reduction in state funding after Rockingham County withdraws from the LME. North Carolina requires that LMEs cover 200,000 individuals to receive full state funding and Rockingham County222s departure leaves the LME 32,000 individuals below the state mandated threshold. The LME222s board of directors has elected to accept the reduction in state funds through June 30, 2011 after failing to merge with other LMEs. Under the terms of the deal, the Alamance Caswell LME will not seek additional funding from its member counties ( Times News via istockanalyst, 12/15 ). Oklahoma Medicaid Cuts Affect Mental Health Services : On December 11, the Oklahoma Health Care Authority board voted to cut nearly $17 million from Medicaid to comply with 5 percent across the board cuts imposed by Governor Brad Henry (D) and the Oklahoma Legislature . The cuts will not reduce provider reimbursements but will affect patient care. Among other changes, the cuts will increase prescription drug copayments, reduce the allowable number of brand name prescriptions, cap outpatient mental health services, and eliminate 120 state funded mental health beds. The cuts are expected to take effect January 1, 2010 ( Tulsa World, 12/11 ; Kaiser Health News, 12/11 ; AP via Express Star, 12/15 ). Pennsylvania Federal Grants Fund Rental Subsidies for Mentally Ill Homeless in York County : Nearly $1 million in federal grants will fund subsidized housing for mentally ill homeless in York County. The grants will fund 29 subsidized apartments for five years but likely serve many more people because of apartment turnover ( York Daily Record, 12/13 ). South Carolina Board Cuts State Budget by 5 Percent, Medicaid to Lose $38 Million : On December 15, the South Carolina Budget and Control Board , chaired by Governor Mark Sanford (R), voted to cut the state222s current year budget by 5 percent acrossthe board, resulting in a $238.2 million spending reduction. The 5 percent cut will reduce the South Carolina Department of Health and Human Services 222 Medicaid budget by $38.3 million ( Anderson Independent Mail, 12/15 ). Governor Says National Health Care Reform Could Cost State $687 Million to $1.2 Billion : In a letter to South Carolina222s Congressmen, Governor Mark Sanford (R) argues that the state cannot afford national health care reform, urging the state222s representatives to oppose it in the House and Senate. Governor Sanford cites a South Carolina Department of Health and Human Services analysis, which found that, between 2014 and 2019, the House222s bill ( HR 3962 ) would cost the state $1.2 billion while the Senate222s bill ( HR 3590 ) would cost $687 million ( AP via Sun News, 12/11 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition December 16, 2009 12/16/09 7 Texas Travis County Study Finds Jailed Veterans Not Utilizing VA Behavioral Health Services : A report released December 14 by Travis County officials found that, though 86 percent of veterans in the Travis County Jail were eligible for behavioral health services through the U.S. Department of Veterans Affairs (VA), only 35 percent received them. In December, the county began a six month pilot program requiring veteran offenders to obtain VA evaluations as part of their pretrial release from jail. In addition, the county is pursuing state funding for a veterans behavioral health court ( American Statesman, 12/15 ). Utah Governor Releases Budget Recommendations, Suggests Increased Medicaid Funding: On December 11, Governor Gary Herbert (R) proposed an $11.3 billion state budget designed to address a projected $700 million shortfall. Despite a slight decrease in total funding from the current year budget, Governor Herbert222s proposal increases Medicaid funding by 1.6 percent. In addition to the budget recommendations, the governor ordered all state agencies to cut their current year budgets by 3 percent before the new fiscal year begins in July ( AP, 12/11 ; The Spectrum, 12/12 ; Salt Lake Tribune, 12/11 ). Washington Governor Proposes State Mandated Budget Plan: On December 9, Governor Christine Gregoire (D) proposed a $33.5 billion budget for the 2009 2011 biennium designed to close the state222s projected $2.6 billion deficit. However, Governor Gregoire immediately clarified that, though she is required by state law to present a budget proposal with no tax increases, she does not support some of the major cuts outlined therein, especially its significant cuts to health care. As written, the governor222s budget would reduce funding for the Washington Department of Human Services by $500 million and the Washington Department of Health by $400 million. Among other changes, the governor222s budget proposes eliminating the state222s Basic Health Plan, which covers about 65,000 state residents, and eliminating General Assistance Unemployable (GAU), which provides temporary assistance to individuals with mental and physical disabilities. The budget would also eliminate state funded substance abuse treatment for roughly 3,600 residents, and reduce or eliminate numerous Medicaid services ( Seattle Times, 12/10 ; Olympian, 12/15 ; Olympian, 12/13 ; Wenatchee World, 12/11 ; AP, 10/9 ). Washington D.C. U.S. Congress Allows District to Legalize Medical Marijuana; City Council to Act : As part of the omnibus spending bill, Congress voted to allow the government of District of Columbia to legalize medical marijuana sales and possession within the District. DC City Council Chairman Vincent Gray (D) wants to move quickly to establish regulations for distributing and growing medical marijuana, saying the Council will use Initiative 59, passed in 1998, to begin creating the city222s rules. However, under home rule, the initiative would still require approval from Congress ( Washington Post, 12/15 ; Politico, 12/13 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition December 16, 2009 12/16/09 8 West Virginia Sen. Byrd Announces Funding for State Programs in the FY2010 HHS Labor Education Bill : On December 14, Senator Robert Byrd (D WV) announced that Congress had passed the FY2010 HHS LaborEducation appropriations bill as part of a larger omnibus spending bill. Sen. Byrd noted that the U.S. Department of Health and Human Services (HHS) spending bill includes $630 for programs in West Virginia, including funding for alcohol and substance abuse prevention programs ( WVNS, 12/14 ). Ohio Valley Medical Center to Expand Behavioral Health Facility: The Ohio Valley Medical Center (OVMC) in Wheeling is expanding its behavioral health care facility, adding 36 new inpatient beds for children and teens. The $7 million project is funded in part by $5.7 million in federal funds and is slated to break ground this spring. OVMC will cover the additional construction costs and estimates that the expanded facility will employ an additional 30 to 35 employees ( State Journal, 12/12 ).
