SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 16, 2010 6/16/2010 1 SAMHSA222s Weekly Financing News Pulse: State and Local Edition Arkansas California Delaware Georgia Illinois Louisiana Massachusetts Montana New Jersey New York Pennsylvania South Dakota Tennessee Vermont Washington Wisconsin 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_subscribe.html?code=USSAMHSA&origin=http://www.samhsa.go v/enetwo rk/success.aspx For quest ions or comments, please contact Kevin Henness y ( kevin.hennessy@samhsa.hhs.gov ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 16, 2010 6/16/2010 2 Around the States: State and Local Behavioral Health Financing New s Arkansas DOJ Awards DFA $355,116 to Fund RSAT Programming for State Prisoners: On June 14, federal officials announced that the U.S. Department of Justice (DOJ) will award a $355,116 grant to the Arkansas Department of Finance and Administration (DFA). Th e grant will fund the continuation of the Residential Substance Abuse Treatment (RSAT) for State Prisoners program at three state correctional facilities. The three facilities , the Tucker Unit in Jefferson County, the Wrightsville Unit in Pulaski County, and the McPherson Unit in Jackson County , have a total of 226 beds for long-term substance abuse treatment ( The Ozarks First, 6/14 ). California Assembly Approves Legislation to Fund High -Risk Insurance Pool : On June 14, the California Assembly unanimously approved legislation (AB 1887) that would establish a high -risk insurance pool, as outlined in the national health care reform law. The bill would utilize approximately $761 million in federa l funding to operate the program until 2014, when the high -risk insurance pools will no longer be necessary because of the provision in the national health care reform law barring insurers from denying coverage to individuals with preexisting conditions . The California pool would cover approximately 30,000 individuals that are currently unable to obtain coverage . The bill now goes before the California Senate ( AP via Business Week, 6/14 ; Kaiser Health News, 6/15 ). Update: Sacramento County Alters Mental Health Budget Proposal : Sacramento County officials altered their proposed mental health budget after mental health advocates sued over the initial proposal. In the original b udget , the Sacramento County Department of Behavioral Health Services (DBHS) proposed cutting its budget to save the county $17.5 million. The proposed cuts included the elimination of four contracts with regional support teams, non -profit clinics that pr ovide outpatient services. The department proposed replacing those entities by expanding the county222s Adult Psychiatric Aftercare Clinic and creating four new outpatient mental health 223wellness centers224 , staffed by county workers. On May 6, Disability Ri ghts California, the Western Center on Law and Poverty, and Cooley LLP filed a class -action suit against Sacramento County, alleging that the cuts could leave thousands of mentally ill residents 223exposed to increased harm or injury and death224 and that the cuts violate state and federal law. In response, county officials have proposed a 223hybrid plan224 under which the county will still ut ilize the wellness centers, with county workers providing clinical services ; h owever, the four regional contractors will provide psychiatric medical services and support services at those centers . The Sacramento County Board of Supervisors could vote on t he budget as early as June 16 ( The Sacramento Bee, 6/11 ; Capital Public Radio, 6/14 ). Delaware House Approves Legislation Authorizing Use of SCRAM Bracelets for DUI Offenders on Probation: On June 8, the Delaware House approved legislation ( HB 281) authorizing judges to force repeat drunk drivers to wear alcohol detecting Secure Continuous Remote Alcohol Monitor ( SCRAM ) bracelets as a condition of probation. The bill would allow judges to impose the requirement on offenders beginning SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 16, 2010 6/16/2010 3 with their third DUI charge. Under the bill, j udges may require offenders to wear the bracelet for up to six months to ensure they do not consume alcohol during probation and would require the o ffenders to pay for the bracelet . Forty -eight states currently utilize SCRAM bracelets. The bill now goes before the Delaware Senate ( The Community News, 6/9 ). Georgia Governor Signs Budget, Includes Funding to Expand Community - Based Behavioral Health : On June 8, Governor Sonny Perdue (R) signed the FY 2011 $17.9 billion budget , spending $300 million less than his proposed budget. The budget contains $42 million to increase staffing at state mental hospitals and improve community -care programs run by the Georgia Department of Behavioral Health ( Atlanta Business Chronicle, 6/8 ). Illinois Governor Signs Bill Allowing M/SU Treatment Courts for Veterans : On June 12, Governor Pat Quinn (D) signed a bill ( HB 5215) allowing for the establishment of mental health and drug courts for veterans. The law allows the chief judge in each of Illinois222 judicial circuits to establish a Veteran and Servicemembers Court Program. The program will be available to veterans w ith mental health and substance abuse disorders charged with non-violent crimes. Veterans approved to participate in the program will undergo a mental health and substance abuse screening and must submit to treatment. Upon successful completion of the tr eatment program, the veterans will be eligible to have the charges dismissed. The law takes effect immediately ( eNews Park Forest, 6/14 ). Louisiana Update: Senate Committee Approves $25 Billion Budget, Restores Health Care Funding : On June 15, the Louisiana Senate Budget Committee approved a $25 billion state budget. The budget restores $67 million that the Louisiana House cut from state charity hospitals in the budg et approved June 4. The Senate budget also restores $65 million that the House budget would allow Governor Bobby Jindal (R) to cut at his discretion . The Senate budget cuts $25 million from private Medicaid providers. The budget now goes before the full Senate ( Times -Picayune, 6/15 ) . Massachusetts Patrick Administration Awards $20 Million to Hospitals and Community Health Centers, Funds M /SU Treatment : On June 9, Governor Deval Patrick222s (D) Administration awarded 39 hospitals and community health centers $20 million. The funding includes $4.2 million in Medicaid reimbursement increases and $15.8 million in grants for health information technology . One of the grantees, t he Holyoke Medical Center , received $2 million, primarily for the psychiatric care of low -income patient s. In addition, Sisters of Providence received $4.8 million, including funding for its Providence Behavioral Health Hospital in Holyoke ( The Republican, 6/10 ). Montana Yellowstone County Voters Approve Mental Health Service s Levy : On June 8, the voters of Yellowstone County approved a 3.2 mill levy for mental health services. County officials estimate that the levy will raise approximately $873,000 annually. The revenue will go to an account controlled by the SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 16, 2010 6/16/2010 4 Yellowstone County Sheriff222s Department to fund mental health services designed to keep the mentally ill out of hospitals and jails ( Great Falls Tribune, 6/9 ). New Jersey Legislators Propose Task Force to Evaluate State Mental Health Facilities : On June 10, State Senator s Richard Codey (D) and Michael Doherty (R) introduced legislation ( S 2069) that would establish a 21- member task force to evaluate the state222s psychiatric facilities. The task force, the State Mental Health Facility Evaluation Task Force, would determine the state222s long - term inpatient psychiatric bed needs and project the effects of displacing patients from state psychiatric hospitals. Under the legislation, the task force must offer findings and recommendations by February 1. In addition, t he Senators have requested that the New Jersey Legislature restore $6.3 million to the proposed FY 2011 budget to keep Senator Garret W. Hagedon Psychiatric Hospital in Lebanon Township open while the task force conducts its analysis. T he hospital is scheduled to close next year ( Lehigh Valley News, 6/11 ). New York Update: Legislature Approves Emergency Spending Bill, Cuts Mental Health Funding : On June 14, the New York Le gislature approved an emergency appropriations bill that includes a $151 million reduction in mental health spending, partially through stricter auditing procedures and the elimination of positions through attrition. The emergency spending bill also reduc es spending on social services programs by $175 million. To keep the state government operating, the legislature is passing emergency appropriations bills every week until a final budget is approved . However, to move toward a final budget, Governor David Paterson (D) has begun adding long -term budgetary measures to the short- term emergency spending bills . The long-term measures are part of the full-year budget for FY 2011 ( Reuters, 6/14 ; The Wall Street Journal, 6/14 ; The New York Times, 6/14 ). Suffolk County Advisory Group Releases Report Recommending Stricter Regulation of Sober Homes : On June 3, Suffolk County222s Welfare to Work Commission , an advisory group comprised of health care professionals, educators, and religious leaders, released a report recommending that the New York Office of Alcoholism and Substance Abuse Services (OASAS) regulate sober homes. Sober homes are group living facilities that house individuals after completion of a detoxification or rehabilitation program. The report found that sober homes often hinder recovery and contribute to relapse due to a lack of oversight. Suffolk County pays to place individuals in sober homes but the report found that many of the homes are not affiliated with a treatment program and that the residents are often unsupervised. The report recommends instituting higher payments for sober homes affiliated with treatment programs, requiring sober homes to contract with the county or state, and pursuing state legislation mak ing Suffolk County a pilot program for addressing issues with sober homes. The report also recommends that the county legal department review a 2010 court decision that blocked Suffolk County from enforcing a law regulating sober homes ( North Shore Sun, 6/11 ) . Pennsylvania State Begins Investigating Underwriting Practices at Ni ne Large Insurers : On Jun e 9, Governor Ed Rendell (D) announced that the Pennsylvania Insurance Department would begin investigating the SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 16, 2010 6/16/2010 5 state222s nine largest health insurers222 underwriting practices . In February, t he state began an investigation of the ins urers by survey ing their practices , suggesting that insurers are expanding their use of medical questionnaires and drug profiling. State officials allege that the insurers are increasingly utilizing the underwriting practices in the small group market to increase revenue before the practice is banned under t he national health care reform law in 2014. State officials say they also plan to apply for a $1 million federal grant to improve insurance rate determination oversight ( Philadelphia Inquirer, 6/10 ; AP, 6/10 ; Kaiser Health News, 6/11 ). Gateway Health Plan to Stop Offering Medicaid Managed -Care Service in 17 Counties : Gateway Heal th Plan officials announced that Gateway will no longer offer Medicaid managed - care coverage in 17 counties beginning in September. Gateway officials say they are ending service in those counties because of inadequate state reimbursement. The change will affect 14,500 beneficiaries. Gateway will continue to offer Medicaid managed care coverage in Blair and Erie counties ( Pittsburgh Business Times, 6/11 ). South Da kota DADA Accepting Proposals for Youth Alcohol Prevention Funding : The South Dakota Division of Alcohol and Drug Abuse (DADA) is accepting proposals for alcohol prevention programming focused on two groups of youth s . DADA funding is available for programs target ing underage drinking among 12 to 20 year old s or binge drinking among 18 to 25 year olds. DADA has $7 .5 million available over five years to fund the programs ( Argus Leader, 6/12 ). Tennessee Legislature Fails to Pass Health Freedom Act : On June 10, the Tennessee General Assembly adjourned without obtaining the votes necessary to pass the Tennessee Health Freedom Act ( SB 3498 ). Under the bill, no government entity can compel an individual to obtain health insurance and the Tennessee Attorney General must seek injunctive relief from any law violating that policy. The measure was a direct challenge to the individual insurance mandate included in the nationa l health care reform law. The Tennessee Senate approved the measure February 17 and t he Tennessee House approved a similar measure but was unable to approve a compromise version of the legislation prior to adjourning ( AP via Business Week, 6/10 ). Vermont Update: Bill Funding Study of Health Care Reforms Become s Law Without Gubernatorial Signature : On May 27, Governor Jim Douglas (R) announced that he would allow legislation (S 88) examining new state health care models to become law without his signature. The law will allocate $300,000 to the Vermont Health Care Reform Commission to design up to three new state health care models . The bill requires the commission to design at least one single -payer model and expands preventive care for chronically ill patients. Governor Douglas cited the exploration of the single - payer model and the law222s requirement that pharmaceutical companies publicly release expense information on free pres cription drug samples as his reasons for not signing the bill ( American Medical News, 6/11 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 16, 2010 6/16/2010 6 State Officials Plan to Keep All or Part of Medicare Part D 223Doughnut Hole224 Rebate Checks : State officials announced that they plan to collect some of the $250 rebate checks sent to Medicare Part D beneficiaries who reach the 223doughnut hole224 prescription drug coverage gap. S tate officials argue that the state222s V Pharm prescription drug assistance program has covered those costs for some seniors and is owed some of the money . VPharm provides financial assistance to low-income Vermont seniors who reach the 223doughnut hole224 and s tate officials say that VPharm should recoup th e money spent on prescription drugs for seniors in the gap from the rebate checks of seniors who received the benefit . Federal officials are urging state officials to let seniors keep their full rebate checks. Approximately 9,000 Medicare Part D recipients will receive t he checks in Vermont and s tate officials estimate that VPharm covered 2,800 seniors in the coverage gap ( Barre -Montpelier Times Argus, 6/12 ). Washington Jefferson County Advisory Board Estimates Substance Abuse and Addiction Cost the County $17.2 Million in 2007: A report by the Jefferson County Substance Abuse Advisory Board (SAAB) estimates that the direct and indirect cost s of drug abuse and addiction in Jefferson County totaled $17.2 million in 2007. The report further estimates that drug abuse and addiction cost each taxpayer $600. The study was m odeled after one conducted by the National Center on Addiction and Substance Abuse (CASA) at Columbia University ( The Leader, 6/9 ; Peninsula Daily News, 6/9 ). Wisconsin MCMHC Violates Patient Safety Standards, Faces Possible Loss of Feder al Funding : On June 14, three state and federal reports were released detailing patient safety violations at the Milwaukee County Mental Health Complex (MCMHC). MCMHC has 45 days to rectify the issues or face the loss of approximately $40 million in feder al funding ( Milwaukee Journal Sentinel, 6/14 ).