SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 2, 2010 6/2/2010 1 SAMHSA222s Weekly Financing News Pulse: State and Local Edition Alabama Alaska Arizona California Colorado Florida Idaho Illinois Indiana Kansas Louisiana New Hampshire Oregon Pennsylvania South Carolina Texas 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 2, 2010 6/2/2010 2 Around the States: State and Local Behavioral Health Financing New s Alabama DMH Sells Bryce Hospital to University of Alabama to Fund New Psychiatric Hospital and Expanded Community Treatment : On May 27, the Alabama Department of Mental Health (DMH) finalized the sale of Bryce Psychiatric hospital to the University of Alabama for $77.75 million. DMH plans to use proceeds from the sale to build a new $65 million 268-bed psychiatric hospital and use $5.7 million to expand community-based treatment by 144 beds. Bryce currently houses 300 patients, 96 of whom DMH will transfer t o community -based treatment facilities between June 1 and December to save $13.1 million annually. The university will lease the buildings currently in use at Bryce back to DMH for up to four years , giving DMH four years to complete the new hospital ( Tuscaloosa News, 5/26 ; Tuscaloosa News, 5/30 ) . Alaska DBH Revokes Salvation Army Clitheroe Center222s Ability to Provide Detoxification Services : On May 24, the Alaska Division of Behavioral Health (DBH) revoked Salvation Army Clitheroe Center222s ability to provide detoxifica tion services, citing health and safety concerns. DBH officials say they are working to restore detoxification services , either through Salvation Army Clitheroe Center or through another provider. The program222s six patients were discharged to appropriate levels of care ( Sit News, 5/26 ). Arizona Pinal County Supervisors Adopt Tentative $437 Million Budget, Health Care Funding Increased : On May 26, the Pinal County Board of Supervisors adopted a tentative $437 million budget for the upcoming fiscal year. The tentative budget is $36.9 million more than the budget for the current fiscal year and reflects costs shifted from the state to counties, including health care costs. The he alth and human s ervices budget represents 22 percent of the adopted budget. The supervisors will adopt a final budget in June, which cannot be higher than the tentative budget approved in May . The tentative budget assumed that voters would not approve Pr oposition 100, which creates a temporary one percent sales tax increase however , P roposition 100 was in fact approved on May 18 ( KVOA, 5/27 ). California L.A. Times Sur vey Finds Five Major Insurers Raising Rates in Small Business Market: A survey conducted by the Los Angeles Times found that five major insurers in California222s small business market are raising premium rates by 12 to 23 percent . Aetna Inc. and Blue Shield of California are both raising rates by an average of 18 percent, Health Net Inc. reported 223low double-digit rate increases224 , and Kaiser Permanente is raising rates by 12 percent. In addition , some Aetna customers will face rate increases of 23 percent and Anthem Blue Cross reported an average rate increase of 13 percent ( Los Angeles Times, 5/26 ; Kaiser Health News, 5/28 ). Update: Obama Administration Supports Healthy San Francisco in U.S. Supreme Court Filing : On May 28, the Obama Administration argued in a filing with the U.S. Supreme Court that the court should reject an appeal by San Francisco restaurant owners challenging the Healthy San Francisco program. SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 2, 2010 6/2/2010 3 The Obama Administration contends that the program does not violate federal law. Healthy San Francisco covers uninsured city residents that are not eligible for Medicaid, providing care at 31 clinics and nine hospitals. The program requires employers to pay a certain amount toward employee222s health care or pay the city the same amount to cover services offered under the program. The restaurant owners argue that the program violates the Employee Retirement Income Security Act (ERISA). The court requested the Obama Administration222s opinion in October and postponed action pending a response. The court may vote within a month on whether to hear the case in the term beginning in September ( San Francisco Chronicle, 5/29 ; Kaiser Health News, 6/1 ). Colorado Governor Signs Eight Health Care Bills: On May 25, Governor Bill Ritter (D) signed eight health care bills into law. SB 167 allows the state to recover up to three times the value of fraudulent Medicaid claims from any company that knowingly submits a false claim. The same bill also allows workers that report Medicaid fraud to receive up to 30 percent of the damages recovered by the state . SB 153 establishes a Behavioral Health Transformation Council to advise the state on improving the behavioral health system to maximize financing efficiency and service delivery. HB 1330 requires the Colorado Department of Health Care Policy and Financing (D HCPF) to establish an advisory committee to issue recommendations for the development of a Colorado all - payer health claims database and HB 1332 requires the D HCPF to develop a standardized set of payment rules for all health care providers and payers. O ther measures will require insurers to offer contraception and prenatal care ( HB 1021), create an advisory council to ensure a healthy food supply (SB 106 ), and removes state employees 222 dependents from their state group health benefit plans when they turn 25 years old ( Denver Business Journal, 5/26 ; Kaiser Health News, 5/27 ). Update: Governor Signs Treatment for Drug Offenders Bi ll: On May 27, Governor Bill Ritter (D) signed legislation ( HB 1352) reclassifying drug use other than marijuana from a Class 6 felony to a Class 2 misdemeanor . The goal of the law is to deemphasize incarceration to save money that can be used for substance abuse treatment. The legislation requires the Colorado Division of Criminal Justice to evaluate the cost savings from the change annually and appropriates the savings to the Drug Offender Treatment Fund. State officials estimate that the law will save $1.5 million annually from jail and prison budgets ( Coloradoan, 5/26 ). Florida Update: Governor Signs $70.1 Billion Budget, Vetoes Medicaid Reimbursement Rate Cut for Nursing Homes : On May 28, Governor Charlie Crist (I) signed a $70.1 billion budget, reducing the budget approved by the Florida Legislature on April 30 by $371 million, using line-item vetoes. Governor Crist222s cuts include eliminating funding for a $32.5 million health care facility slated for joint operation by Florida International University (FIU) and Miami -Dade County. Governor Crist also eliminated a planned reduction in Medicaid reimbursement rates for nursing homes and providers serving the developmentally disabled, at a cost of $199.4 million ( AP via The Miami Herald, 5/28 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 2, 2010 6/2/2010 4 Idaho DHW222s Outpatient Substance Abuse Treatment Funding Depleted : State officials announced that the Idaho Department of Health and Welfare (DHW) depleted its $21 million outpatient substance abuse treatment budget in April, leaving no funds for the services until DHW receives another $21 million on July 1 under the new fiscal year. In addition , $4 million of t he new funding will go to costs incurred during the current fiscal year. There are currently 2,000 individuals on a waiting list for state -funded outpatient substance abuse treatment ( AP via Fox 12 Idaho, 5/31 ). Illinois Cook County Commissioners Vote to Make Independent Health Board Permanent : On June 1, the Cook County Commissioners voted to make permanent a n independent board overseeing the county222s public health care system. The county commissioners created the board in March 2008 for a three -year trial period. The board is composed of business leaders, health care professionals and administrators, a labor leader, and a budget expert. The board runs the health care system but the county commissioners approve its budget ( C hicago Tribune, 6/1 ) . Indiana Community Health Network Completes $1.1 Million Renovation of Inpatient Behavioral Health Hospital : Community Health Network completed a $1.1 million renovation of its inpatient behavioral health hospital and crisis services facility using American Recovery and Reinvestment Act (ARRA) funding. Community Health Network renamed the facility 223 Community222s Behavioral Health Pavilion224 to reflect the broader array of behavioral health services offered. The facility offers care to patients of all ages with mild to serious behavioral health issues throughout Central Indiana ( Inside Indiana Business, 6/1 ). Kansas Update: Governor Signs $13.6 Billion Budget, Restores Medicaid Reimbursement Rate , Signs Residential Bed Fee for Nursing Homes : On May 27, Governor Mark Parkinson (D) signed the $13.7 billion budget approved by the Kansas Legislature on May 11. The budget reverses a 10 percent cut in Medicaid reimbursements , makes no cuts to community mental health centers , limits Medicaid recipients to four name- brand prescriptions monthly , and eliminates Medicaid funding for over -the - counter medication. The budget also increases the premiums for HealthWave, a state health insurance program for children in low and middle-income families. Governor Parkinson made several changes to the budget, including the elimination of a study on requiring insurance companies to reimburse mental health professionals for proactive mental health treatments . The governor eliminated the study because the budget did not allocate funding for it . On the same day, Governor Parkinson also signed a measure ( HB 2320) to assess an annual fee of up to $1,950 per nursing home bed to draw down federal Medicaid funds , which the state will distribute back to the nursing homes ( The Topeka Capital -Journal, 5/27 ; Gardner Edge, 6/1 ; Kaiser Health News, 5/28 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 2, 2010 6/2/2010 5 Louisian a House Appropriations Committee Approves $25 Billion Budget, Health Care Funding Affected: On May 27, the Louisiana House Appropriations Committee approved a $25 billion budget containing $68 million in cuts to the public hospital system run by Louisiana State University (LSU) and $65 million in cuts left to the discretion of Governor Bobby Jindal (R). The budget shifts $55 million from the state222s economic development fund to health care and utilizes the $106 million in federal Medicaid funds U.S. Senat or Mary Landrieu (D -LA) secured for the state in the national health care reform law. The budget now goes before the full House ( AP via Business Week, 5/28 ). New Hampshire Poll Finds Near -Even Split in Support for National Health Reform Law: A poll conducted by Dartmouth College found that 44.4 percent of New Hampshire residents oppose the national health care reform law, while 43.7 percent support it. The poll surveyed 406 registered New Hampshire voters in late April ( The Keene Sentinel, 5/30 ). Oregon Governor Announces Cuts to Close Current Biennium Deficit of $577 Million : On May 25 , Governor Ted Kulongoski (D) announced a 9 percent cut in spending for all state agencies, including the Oregon Department of Human Services , to close a current biennium deficit of $563 million announced by the Oregon Office of Economic Analysis (OEA) on May 25. OEA revised that projection on May 27 to $577 million. The deficit is a result of smaller than anticipated tax revenue. State agencies will submit their proposed cuts to the governor by June 8 and the cuts would take effect on July 1, the beginning of the second year of the current two -year budget cycle ( Statesman Journal, 5/26 ; P ortland Business Journal, 5/27 ). Pennsylvania Westmoreland County Awards $150,000 Contract for Center Offering Behavioral Health Services for Probation and Parole Violators : The Westmoreland County Commissioners awarded SPHS Behavioral Health a $150,000 contract to establish a day reporting center to offer behavioral health services and drug and alcohol testing, primarily to probation and parole viola tors ordered there by a county judge. The contract is part of the $700,000 of funding that SPHS has been awarded thus far to establish the center, which is slated to open later this year ( Pittsburgh Tribune -Review, 5/28 ). South Carolina Conference Committee Ap proves $4.96 Billion Budget , Health Care Affected : On May 27, the South Carolina Legislature222s Conference Committee approved a $4.96 billion budget for the fiscal year beginning July 1. The budget eliminates a proposed cap on the state222s Children222s Health Insurance Program (CHIP) and limits Medicaid beneficiaries prescription drug utilization The budget also contains $300,000 for rural hospital grants and $800,000 for trauma centers. Legislators removed $50 million in proposed fee and fine increases from the budget, reduc ing funding for health and social services programs . The budget now goes before both legislative bodies for final approval ( Anderson Indep endent Mail, 6/1 ; AP via Business Week, 5/28 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 2, 2010 6/2/2010 6 Texas Update: State Leaders Request 10 Percent Agency Budget Cuts for Next Biennium : On May 28, state officials requested that all stat e agencies submit proposals for 10 percent cuts as they develop their budget proposals for the next biennium. State officials requested that agencies submit their base-line budget requests for the next biennium along with a 223supplemental schedule, 224 o utlining cuts of 5 percent to the base -line budget in each of the two budget years . Benefits and eligibility for Medicaid and CHIP are exempt from the cuts ( Star Telegram, 5/28 ; Austin American- Statesman, 5/28 ).