SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 30, 2010 6/30/2010 1 SAMHSA222s Weekly Financing News Pulse: State and Local Edition Alabama Arizona California Colorado Hawaii Idaho Louisiana Massachusetts Minnesota Missouri New Jersey New York North Carolina Ohio Pennsylvania Utah 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_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 30, 2010 6/30/2010 2 Around the States: State and Local Behavioral Health Financing New s Alabama Shelby County to Begin Mental Health Court : The Shelby County Community Health Foundation provided $100,000 to finance the first year of operation for a mental health court in Shelby County. The Shelby County Mental Health Court will provide mentally ill offenders with treatment in an effort to keep them out of the criminal justice system. The court will only consider cases of nonviolent offenders who commit violations, misdemeanors, and Class B or C felonies. The court is schedule to begin by the fall ( Shelby County Reporter, 6/24 ). Arizona Child Abuse Prevention License Plate Program Awards Grant to JFCS for Children222s Behavioral Health Services : On June 21, the Child Abuse Prevention License Plate Program awarded Jewish Family and Children222s Services (JFCS) a $40,000 grant for behavioral health programming. The Child Abuse Prevention License Plate Program is a partnership between t he Arizona Republi c Charities and the Governor222s Office for Children, Youth, and Families , which raises funds to prevent child abuse through the sale of specialty license plates. JFCS will use the grant to fund Creating Peaceful Families, a program that aims to prevent sub stance abuse, child abuse, and bullying. JFCS officials project the grant will allow them to serve over 1,000 children ( The Arizona Republic, 6/29 ). California MHSOAC Allocates Millionaire222s Tax Funds for Mental Health Services : On June 24, the California Mental Health Services Oversight and Accountability Commission (MHSOAC) approved the distribution of $29.1 million in funding for mental health services in Butte, Kings, Napa, Orange, San Bernardino, Siskiyou, Solano and Tuolumne counties. The funds come from a tax ( Proposition 63 ) on state residents earning over $1 million annually and will finance prevention and early intervention programming ( Contra Costa Times, 6/26 ). State Breaks Ground on Women222s Prison Mental Health Facility in Chino : Construction has begun on a 45-bed mental health facility at the California Institution for Women, a state prison in Chino for female offenders. State officials project the facility will be completed in December 2011. The Public Safety and Offender Rehabilitation Se rvices Act of 2007 ( AB 900 ) , which allocated $7.7 billion for prison capacity expansion and rehabilitation program improvement, provides $34 million for the project ( Contra Costa Times, 6/26 ). San Francisco Supervisor Proposes Alcohol Fee to Cover Costs of Alcohol Abuse: On June 22, San Francisco Supervisor John Avalos proposed imposing an alcohol fee to cover the health care costs of alcohol abuse borne by San Francisco ta xpayers. Avalos222 proposal would impose a 0.076-cent per-ounce fee on alcohol wholesalers. Officials estimate that the fee would raise $15 million annually and increase the cost of a standard drink by no more than 5 cents . Unlike taxes, proposed fees do not require voter approval . The proposal now goes before the San Francisco Board of Supervisors ( San Francisco Chronicle, 6/23 ) . SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 30, 2010 6/30/2010 3 Update: Aetna Withdraws Rate Increase Proposal O ver Math Errors: After determining that the company made mathematical errors in its proposal, Aetna, Inc. withdrew its proposed health insurance premium increases for individual policyholders . Aetna officials say they un covered the errors and informed the California Department of Insurance (DOI) . Aetna plans to file a corrected proposal with the DOI. The original proposal would have raised individual insurance premium rates for 65,000 individuals by an average of 19 per cent. In related news, Insurance Commissioner Steve Poizner announced that the DOI will begin posting future rate filings on its website to facilitate public review ( The Sacramento Bee, 6/25 ; AP, 6/25 ; Kaiser Health News, 6/25 ). Update: U.S. Supreme Court Rejects Appeal O ver Healthy San Francisco : On June 28, the U.S. Supreme Court denied an appeal by the Golden Gate Restaurant Association (GGRA) that challenged the legality of the Healthy San Francisco program. Healthy San Francisco provides health care for uninsured city residents that are not eligible for Medicaid, requiring employers to pay a certain amount toward employees222 health care or pay the city the same amount to cover services offered under the program. The restaurant owners argued that the program violates the Employee Retirement Income Security Act (ERISA). The GGRA appeal challenged a previous ruling by the Ninth Circuit Court of Appeals , which found that the progra m does not violate the ERISA. However, t he Supreme C ourt allowed the circuit court ruling to stand ( AP, 6/28 ). VA Approves $20 Million to Fund Therapeut ic Housing for Chronically Homeless Veterans in LA County : On June 28, U.S. Senator Diane Feinstein (D -CA), U.S. Representative Henry Waxman (D -CA), and Los Angeles County Supervisor Zev Yaroslavsky (D) announced that the U.S. Department of Veterans Affair s (VA) approved $20 million to fund therapeutic housing for chronically homeless veterans in Los Angeles County. The funds will pay for the conversion of a building at the West Los Angeles VA Campus that will house 70 to 90 chronically homeless veterans. The facility will also offer the veterans mental health treatment, medical care, and other services ( Los Angeles Times, 6/29 ; Kaiser Health News, 6/29 ). Senate Approves Legislation to Create High -Risk Insurance Pool: On June 28, the California Senate approved legislation (SB 227) that would establish a high -risk insurance pool, as outlined in the national health care reform law. The bill would enable the state to obtain $761 million in federal funding to operate the program until 2014, when the high -risk insurance pools will no longer be necessary. Beginning in 2014, a pr ovision in the national health care reform law will bar insurers from denying coverage to individuals with preexisting conditions. Until 2014, t he California pool would cover approximately 30,000 individuals that are currently unable to obtain coverage. The bill now goes before Governor Arnold Schwarzenegger (R) ( AP, 6/29 ). Colorado Update: CHF Offering Loans for Non - Profit Providers in Face of Medicaid Payment Delay : The Colorado Health Foundation (CHF) is offering loans to non- profit health care organizations with cash - flow issues stemming from the state222s delayed Medicaid payments. Colorado is delaying Medicaid payments until July 9 to save the state $ 38 million. In the interim, CHF is offering $3 million in short -term loans to the SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 30, 2010 6/30/2010 4 277 organizations that receive CHF grants . CHF offers grants to non -profits that work to increase the number of insured Coloradoans. The loans will range between $50,000 and $300,000 and will be subject to 4 percent interest ( Denver Business Journal, 6/24 ). Hawaii Disability Rights Group Sues State O ver Mental Health Cuts : On June 22, th e Hawaii Disability Rights Center (HDRC) filed suit against the Hawaii Health Department over adult mental health services cuts that the department made in 2009. HDRC alleges that the cuts deprived state residents of access to needed medication, treatment, and services. In 2009 , the department222s Adult Mental Health Division reduced case management hours from three weekly to 3.5 monthly and reduced eligibility for services to exclude all but those with 223severe and persistent224 mental illnesses. HDRC is requesting that that the court stop enforcing the new eligibility standards, require the department to determine eligibility based on the previous criteria, and require the department to provide remedial services to compensate for wrongfully den ied services. HDRC is also seeking damages to compensate for 223physical and psychological injuries caused by the wrongful denial of services and medication based upon invalid ru les224 ( Honolulu Star Advertiser, 6/25 ). Idaho Substance Abuse Treatment Facility for Inmates Opens in Kuna : On June 22, the Idaho Department of Correction ( DOC) opened a new inmate substance abuse treatment facility in Kuna. The facility will house the Correctional Alternative Placement Program (CAPP ), a 90 -day treatment program in which inmates receive eight hours of treatment daily for five days pe r week. The facility will house up to 400 prisoners and state officials project that CAPP will provide substance abuse treatment to over 1,600 prisoners annually. Utah -based Management and Training Corporation won the five-year nearly-$50 million contra ct to operate the facility ( KTVB, 6/23 ; The Salt L ake Tribune, 6/21 ). Louisiana DHH Secretary Requests $10 Million From BP for Mental Health Services Related to Oil Spill: On June 28, Louisiana Department of Health and Hospitals (DHH) Secretary Alan Levine sent a letter to BP PLC officials requesting $10 million for mental health services related to the Deepwater Horizon oil spill in the Gulf o f Mexico . The funds would provide six months of DHH outreach as well as behavioral health services through locally governed human services districts and community -based organizations. Thus far, DHH has been operating outreach using a $1 million BP grant that came from the $25 million BP initially provided the state for disaster relief. In his letter, Secretary Levine cites increased instances of mental health and substance abuse issues resulting from the oil spill. DHH originally requested the funding on May 28 but BP has yet to respond to that request. Secretary Levine has asked BP to respond to the June 28 request within one week ( Bayou Buzz News, 6/28 ; Times -Picayune, 6/28 ). Massachusetts Legislature Approves $27.6 Billion Budget, Includes Contingency Cuts for Substance Abuse Treatment : On June 24, the Massachusetts Legislature approved a $27.6 billion budget for FY2011. The budget does not include the $687 million in additional American Recovery and Reinvestment Act (ARRA) SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 30, 2010 6/30/2010 5 Federal Medical Assistance Percentage (FMAP) funding that Massachusetts would likely receive if Congress approves the American Jobs and Closing Tax Loopholes Act . Unless Congress approves those funds, t he Massachusetts budget eliminates $1.5 million for adult drug treatment programming, $ 2 million for a jail diversion program for drug addicts, and $4.4 million for smoking prevention programming . However, if Congress appro ves the FMAP funding extension , the budget would restore the substance abuse funding. The budget now goes before Governor Deval Patrick (D) ( Worcester Telegram and Gazette, 6/25 ). Update: DOI Approves Harvard Pilgrim222s Proposed Rate Increases: On June 24, an appellate panel within the Massachusetts Division of Insurance (DOI) overturned the division222s decision to reject Harvard Pilgrim Health Care222s proposed individual and small - group premium increases. The appellate panel determined that the rate increases Harvard Pilgrim proposed were reasonable given Harvard Pilgrim222s hospital and doctor reimbursements . The proposed increases averag ed eight to 12 percent. On April 1, Massachusetts Insurance Commissioner Joseph Murphy rejected 235 of 274 proposed health insurance rate increases, including those submitted by Harvard Pilgrim. Blue Cross Blue Shield of Massachusetts (BCBS), Tufts Health Plan , Fallon Community Health Plan, Health New England, and Neighborhood Health Plan are currently appealing DOI222s rejection s ( The Boston Globe, 6/28 ; Kaiser Health News, 6/28 ) . Minnesota Governor Opts Not to Expand Medicaid Early : On June 22, Governor Tim Pawlenty (R) announced that he will not expand the state222s Medicaid program before 2014. The national health care reform law requires all states to expand Medicaid eligibility beginning in 2014; however, Minnesota is one of several states eligible to conduct the expansion early. The budget compromise reached on May 17 included a measure under which the s tate would apply to conduct the early Medicaid expansion. However, the measure requires gubernatorial approval to submit the application. Governor Pawlenty cited cost as his reason for not authorizing the early expansion application, projecting that it w ould cost the state $430 million over the next three years. Minnesota222s next gubernatorial election is scheduled for November and Governor Pawlenty is not seeking a third term. Under the budget compromise, h is successor would have until January 15 to reverse his decision and authorize the early Medicaid expansion application ( Kaiser Health News, 6/23 ; WCCO, 6/22 ) . Missouri Residents File Suit to Block Proposed Amendment Challenging Individual Insurance Mandate : Two Missouri residents filed suit to have a proposed constitutional amendment challenging the national health care reform law removed from the August 3 ballot. The amendment would bar the federal government from requiring individuals or employers to purchase health insurance. The plaintiffs contend the measure violates the state constitution because it does not have a single subject clearly expressed in its title. They also claim that the measure violates a state constitutional requirement that lawmakers not change the original intent of legislation, because t he amendment was added to a bill originally designed to govern the voluntary dissolution of insurance companies. No hearing has been scheduled on the suit ( AP via Business Week, 6/23 ; Kaiser Health News, 6/24 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 30, 2010 6/30/2010 6 New Jersey Update: Legislature Approves Bill Creating Task Force Evaluati ng State Mental Health Facilities : On June 28, the New Jersey Legislature approved legislation (A 2866 ) establishing a 21 -member task force to evaluate the state222s psychiatric facilities. T he State Mental Health Facilities 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. The measure now goes before Governor Chris Christie (R). Legislators previously requested that the New Jersey Legislature restore $6.3 million to the proposed FY2011 budget to keep Senator Garret W. Hagedon Psychiatric Hospital in Lebanon Township open while the task force c onducts its analysis. A budget compromise reached on June 21 will keep the facility open for at least one year ( The Star -Ledger, 6/25 ; The Star - Ledger, 6/25 ). New York Legislature Approves Measure Mandating Coverage for Autism : On June 21, the New York Assembly unanimously approved legislation (A 10327) that would require insurers to cover autism-related screenings, diagnoses, and treatments. Advocates say the measure has the potential to be the most comprehensive of its kind because unlike other states 222 measures, it does not impose age or spending limits on required autism coverage. The bill222s sponsors estimate that it will raise health insurance premiums by up to 2 percent. The measure now goes before Governor David Paterson (D) ( The New York Times, 6/22 ). Update: Judge Rules New York Must Begin Moving Mentally Ill Out of Large Institutional Housing : On June 23, the U.S. Court of Appeals for the Second District lifted the stay on a decision requiring New York to move mentally ill patients out of large institutional housing. A U.S. District Court ruling mandated that New York create at least 1,500 housing units per - year for three years to house mentally ill patients in New York City. However, t hat decision has been under a stay pending an appeal by the state. T he June 23 decision requires the state to begin implementing the plan before the court hears the state222s appeal. In the original case, advocates allege d that New Yo rk violated the Americans with Disabilities Act by housing mentally ill individuals in adult homes that do not allow them to interact with the community. The state argues that advocates for community - based housing are overestimating the demand for such services and underestimating their cost ( The New York Times, 6/24 ). NYC Mayor and Council Reach Agreement on Budget, Include Funds for Health and Hospitals Corporation: On June 24, Mayor Michael Bloomberg (I) and the New York City Council reached an agreement on a $63 billion budget for the fiscal year beginning July 1. The budget includes $350 million for the Health and Hospital Corporation (HHC ), a public benefit corporation that serves 1.3 million New Yorkers annually. HHC provides medical, mental health, and substance abuse services at 11 hospitals, four skilled nursing facilities, six diagnostic and treatment centers, and over 80 community - based clinics . HHC serves approximately 450,000 uninsured New Yorkers ( The New York Times, 6/24 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 30, 2010 6/30/2010 7 North Carolina Mecklenburg County Division of the ABC Awards Grants to 20 Non-P rofits : The Mecklenbu rg County division of the North Carolina Alcoholic Beverage Control Commission (ABC) awarded $533,155 in grants to 20 non-profits. The grants will fund substance abuse prevention, education, training, and field research f or one year beginning on July 1. The ABC raises funds for the grants by taxing the sale of distilled spirits in Mecklenburg County ( Charlotte Business Journal, 6/22 ). Ohio Clermont County MHRB Awards UC $1.1 Million to Monitor Children222s Mental Health Program : The Clermont County Mental Health and Recovery Board (MHRB) awarded the University of Cincinnati222s (UC ) School of Social Work a $1.1 million contract to monitor a children222s mental health initiative. In February, the Substance Abuse and Mental Health Services Administration (SAMHSA) awarded the Clermont County MHRB a six-year $9 million grant for the Fast Trac Initiative, a program to expand children222s mental health services in Clermont County. Under the contract, UC will evaluate the progress of 225 children and their families to determine if the program improves the children222s mental health ( Business Courier , 6/29 ). Department of Insurance Selects Medical Mutual of Ohio to Run High-Risk Pool: On June 25, officials from the Ohio Department of Insurance selected Medical Mutual of Ohio to run the state222s high -risk insurance pool. T he national health care reform law requires high -risk insurance pools in all states until 2014. Beginning in 2014, t he law222s more comprehensive protections take effect and insurance exchanges become operational, rendering the pools obsolete. Ohio222s high -risk pool will cover approximately 5,000 individuals and operate on $152 million in federal funds. The U.S. Department of Health and Human Services (HHS) must approve the program before it may begin ( Cleveland Plain Dealer, 6/25 ). Pennsylvania Update: HHS Approves State222s High-Risk Pool Proposal : On June 25, the U.S. Department of Health and Human Services (HHS) approved the Pennsylvania Insurance Department222s plan for a high- risk insurance pool. The pool will offer coverage to individuals who cannot obtain insurance because of a preexisting condition, as outlined in the national health care reform law. State officials project that premium revenue and $160 million in federal funding through 2013 will allow the high-risk pool to cover up to 5,600 individuals. The pool will cover doctor and hospital visits, mental health services, prescriptions, and diagnostic testing ( The Philadelphia Inquirer, 6/29 ; Kaiser Health News, 6/29 ). Utah Gov ernor Decides State Will Run High-Risk Insurance Pool : On June 24, Governor Gary Herbert (R) announced that Utah will operate its own high-risk insurance pool rather than allowing the federal government do so. The national health care reform law requires high -risk insurance pools in all states until 2014; however, s tates can opt to manage their own pools or allow the U.S. Department of Health and Human Services (HHS) to manage a pool within their state. Utah will receive $40 million in federal funds to op erate the pool through 2014, when the reform law222s more comprehensive protections take SAMHSA222s Weekly Financing News Pulse: State and Local Edition June 30, 2010 6/30/2010 8 effect and insurance exchanges become operational. State officials project that the pool will cover 2,300 of the 17,000 individuals eligible for the program. Utah is a mong 29 states and the District of Columbia that elected to operate their own high risk pool ( The Wall Street Journal, 6/25 ; The Salt Lake Tribune, 6/25 ; Kaiser Health News , 6/25 ). West Virginia Update: BHCPA Releases Report Critical of DHHR Plan to Transfer SSI Recipients to Managed Care: On June 18, the West Virginia Behavioral Health Care Providers Association (BHCPA) released a report challenging the West Virginia Department of Health and Human Resources222 (DHHR) plan to transfer the medical and behavioral health benefits of Supplemental Security Income (SSI) recipients from fee-for- service plans to managed- care plans. DHHR intends to use the transfer to integrate behavioral health and physical health services; however, BHCPA contends that the plan is overly complicated and could reduce access to essential mental health services. The BHCPA report also suggests that the plan could drive up costs and increase the percentage of funding going toward administration. Additionally, the report questions the capability of managed care organizations to serve the chronically mentally ill population and the feasibility of supporting a managed care network in a rural state. DHHR plans to begin enrolling SSI recipients in managed-care organizations on December 1. State officials project the transition will affect 55,000 individuals ( The Charleston Gazette, 6/26 ).