WeeklyFinancingNewsPulseStateandLocalEditionfinal20091202.pdf (PDF | 250.06 kb)
SAMHSA222s Weekly Financing News Pulse: State and Local Edition December 2, 2009 12/2/09 1 SAMHSA222s Weekly Financing News Pulse: State and Local Edition California Connecticut Georgia Hawaii Idaho Kansas Louisiana Massachusetts Michigan Missouri New York North Carolina Ohio Oklahoma Texas Vermont 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 2, 2009 12/2/09 2 Around the States: State and Local Behavioral Health Financing News California Los Angeles City Council to Study Caps on Medical Marijuana Dispensaries, Allow Some Cash Transactions: In a Los Angeles City Council meeting on November 24, the council elected not to ban the sale of medical marijuana in the city, rejecting Los Angeles County District Attorney Steve Cooley222s interpretation that any cash exchange constitutes a violation of state law. Instead, the council voted to allow some cash contributions for medical marijuana and instructed city officials to study a cap on the number of dispensaries. Los Angeles Mayor Antonia Villaraigosa (D) supports the dispensary caps but has yet to review the provision governing cash exchanges. Meanwhile, DA Cooley has indicated that he will prosecute dispensaries conducting cash medical marijuana transactions regardless of the city222s ruling because he believes they violate state law ( Los Angeles Times, 11/26 ; Los Angeles Times, 11/18 ; Join Together, 11/23 ). Connecticut Governor Outlines Deficit Reduction Plan, Health Care Affected : On November 24, Governor M. Jodi Rell (R) announced a plan to close the state222s projected $467 million budget deficit through a combination of executive maneuvers and legislative action. The governor also scheduled a December 15 special session of the Connecticut Legislature to vote on the proposals that require legislative approval. Among other changes, the governor222s plan would cut Department of Social Services funding by $7.2 million, cut Community Health Services funding by $1.7 million, reduce Medicare Part D supplemental needs funding by $4.3 million, and reduce some providers222 Medicaid reimbursement rates ( Greenwich Post, 11/28 ; Record Journal, 11/28 ). Georgia Grady Health System Withdraws from Peach State Health Plan Network Medicaid Plan : After months of unsuccessful negotiations, the Grady Health System broke ties with the Peach State Health Plan Network, one of the state222s Medicaid insurance plans. As a result of the move, Peach State enrollees will no longer be eligible for services at Grady Health System facilities after December 31, 2009. Peach State officials indicate that roughly 2,100 enrollees will be forced to find alternate sources of care, though Grady officials estimate the move will affect more than 12,000 patients ( CBS, 11/27 ; Atlanta Journal Constitution, 11/25 ). Hawaii Update: State222s ERISA Waiver to be Unaffected by National Health Reform Legislation: Provisions in both the Senate Democrats222 ( HR 3950 ) and the House Democrats222 ( HR 3962 ) national health care reform legislation would allow Hawaii to maintain its employer health insurance mandate in the event that national employer sponsored health care requirements are weaker than the state222s requirements. Through the Hawaii Prepaid Health Care Act of 1974 , Hawaii has an Employee Retirement Income Security Act (ERISA) waiver allowing the state to require all employers to provide health insurance for employees working more than 20 hours a week. Hawaii222s law also limits employees222 premium contributions to 1.5 percent of their annual wages ( NPR, 11/27 ; Kaiser Health News, 11/30 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition December 2, 2009 12/2/09 3 Idaho Developmental Disability Providers Attempt to Expand Medicaid Lawsuit : In April 2009, a group of private developmental disability service providers sued the Idaho Department of Health and Welfare after the state attempted to cut Medicaid reimbursements for some developmental disability services by as much as 55 percent. The judge ordered a temporary injunction blocking the cuts and the state asked the judge to make the injunction permanent, electing to abandon the cuts. However, the service providers are now seeking permission to expand the lawsuit to cover all developmental disability rate changes made since 1997, alleging that the state failed to use a consistent methodology to arrive at the reimbursement rates. The providers are not seeking retroactive pay but wish to establish an official methodology governing current and future reimbursements ( AP, 11/30 ; Kaiser Health News, 12/1 ). Kansas Governor Announces Budget Cuts, Medicaid Affected : On November 23, Governor Mark Parkinson (D) announced $259 million in budget cuts to correct the state222s current year deficit. In addition to budget cuts from transportation and education, the governor reduced Medicaid provider reimbursements by 10 percent to save $22 million. Governor Parkinson also shifted American Recovery and Reinvestment Act (ARRA) funding previously budgeted for next year into the current year222s budget ( Winfield Daily Courier, 11/28 ; Kansas City Star, 11/23 ). Louisiana Senator Secures Provision Increasing Louisiana222s FMAP in Senate222s National Health Reform Bill : Senator Mary Landrieu (D LA) secured the addition of a provision within the Senate Democrats222 health care reform bill, the Patients Protection and Affordable Care Act of 2009 ( HR 3950 ), that would increase Louisiana222s federal Medicaid funding by increasing the state222s Federal Medical Assistance Percentage (FMAP). The provision, which was written to increase Medicaid funding for states whose FMAPs were reduced because of artificially inflated tax collection figures resulting from disaster relief funding, does not specifically mention Louisiana. Some experts believe that the initial language may apply to Hawaii as well ( Times Picayune, 11/28 ). Massachusetts Legislature Considers Bill Requiring Colleges to Provide Health Insurance for Students : The Massachusetts Legislature is considering a bill ( SB 609) that would require public and private colleges and universities in the state to provide health insurance to all of their full and part time students. Under the bill, schools that do not provide the insurance would pay $1 per day into the state222s Health Safety Net Trust Fund for every student they fail to insure. The bill is scheduled for public debate before the Senate Health Care Financing Committee on December 3 ( AP, 11/30 ; Kaiser Health News, 11/30 ). BCBS Signs AQC with Hospital, Implements Global Payments : On November 27, Blue Cross Blue Shield of Massachusetts (BCBS) signed an alternative quality contract (AQC) with Caritas Christi Health Care, a chain of six community hospitals in eastern Massachusetts. Under the AQC, which is valued at $1.5 billion over four years, BCBS will no longer use fee for service (FFS) billing for 60,000 BCBS HMO enrollees. Instead, BCBS will pay Caritas a fixed price for the patients with an additional 10 percent SAMHSA222s Weekly Financing News Pulse: State and Local Edition December 2, 2009 12/2/09 4 bonus for achieving certain quality benchmarks. The move, which is considered a major pilot of the 223global payment224 system, is designed to reduce the cost of unnecessary care provided under FFS systems ( Boston Globe, 11/28 ; Wall Street Journal, 11/27 ; Kaiser Health News, 11/30 ). Six Hospitals Sue State Over Reimbursements : Six Massachusetts hospitals are suing the state, alleging that the state222s landmark 2006 health care reform law does not provide them with adequate compensation for their public insurance patients, noting that their compensation for such patients ranges from 40 to 86 percent of the actual cost of care. All six hospitals are 223disproportionate share hospitals,224 meaning that at least 63 percent of their patients are covered by Medicaid or Medicare. The six hospitals involved in the suit are: Berkshire Medical Center, Signature Healthcare Brockton Hospital, Cape Cod Hospital, Holyoke Medical Center, Merrimack Valley Hospital, and Quincy Medical Center. The lawsuit follows a similar suit brought by Boston Medical Center on July 15 ( AP, 11/30 ; Boston Herald, 12/1 ; Cape Cod Times, 12/1 ; Kaiser Health News, 12/1 ). GLSS Receives Boston Foundation Grant for Elder Mobile Mental Health Project : Greater Lynn Senior Services (GLSS) received a $30,000 grant from the Boston Foundation to continue funding the Elder Mobile Mental Health Project, which provides home based counseling and referrals to elderly residents coping with mental health issues. The pilot program was started last January through an initial $15,000 grant from the foundation ( Daily Item, 12/1 ). Michigan State Mental Health Program Receives $30,000 Private Grant : The Ethyl and James Flinn Foundation awarded a $30,000 grant to fund the Michigan Department of Community Health222s Assertive Community Treatment services for the seriously mentally ill ( WSJM, 11/30 ). Missouri St. Louis Begins Allocating Children222s Mental Health Sales Tax Funds : On November 23, the St. Louis County Council began allocating funds from the one quarter of one cent children222s mental health sales tax passed in 2008. The tax has already generated $17.5 million and is expected to raise $40 million this year. St. Louis County has allocated $184,000 to start the St. Louis County Children Services Fund Board, the agency responsible for administering future funding ( St. Louis Post Dispatch, 11/28 ). New York Governor Halts Budget Negotiations with Legislature, Announces Plans to Cut Budget, Health Care Affected : After breaking off negotiations with the New York Legislature , Governor David Paterson (D) announced plans to modify state spending to free up $1.6 billion to pay immediate expenses. The governor says that the Legislature222s budget package would eliminate only $2.8 billion of the state222s $3.2 billion budget deficit. Governor Paterson222s proposed changes would delay payments to schools, hospitals, and local governments and temporarily divert money from state agencies to the general fund, allowing the state to pay its current expenses. In addition, the governor222s proposal would save $300 million through lower prescription drug reimbursements, include $150 million in improved Medicare fraud collections and management, and reduce state tobacco prevention funding by $10 million. State SAMHSA222s Weekly Financing News Pulse: State and Local Edition December 2, 2009 12/2/09 6 Vermont State Considers $20 Million Cut to Mental Health Care : At a meeting about the Vermont State Hospital in Waterbury, representatives of Governor Jim Douglas222 (R) Administration said that they are considering cutting mental health funding by $20 million for the upcoming fiscal year. Meeting attendees report that the cuts would include $10.5 million from the Community Rehabilitation and Treatment program, $5.5 million from children222s services, and $1.7 million from the state hospital. An additional $2.7 million cut would eliminate all state funding for adult outpatient services ( Rutland Herald, 12/1 ). West Virginia Atkins to Return as Bureau for Medical Services Commissioner: On November 30, West Virginia Department of Health and Human Resources (DHHR) Secretary Patsy Hardy appointed Nancy Atkins as the Commissioner of the Bureau of Medical Services, the body that oversees the state222s Medicaid program. Atkins previously served as the Bureau Commissioner for six years before leaving to work in the private sector and replaces Marsha Morris who accepted a position as Deputy General Council for DHHR ( AP via Philly Burbs, 11/30 ).
