WeeklyFinancingNewsPulseStateandLocalEditionfinal20100331.pdf (PDF | 259.40 kb)
SAMHSA222s Weekly Financing News Pulse: State and Local Edition March 31, 2010 3/31/2010 1 SAMHSA222s Weekly Financing News Pulse: State and Local Edition Arizona California Colorado Florida Georgia Hawaii Idaho I owa Massachusetts Maryland Michigan Mississippi Missouri Montana New Mexico New York North Carolina Ohio Pennsylvania 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&or igin=http://www.samhsa.go v/enetwork/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 March 31, 2010 3/31/2010 2 Around the States: State and Local Behavioral Health Financing New s Arizona Update: AHC C CS Releases Study: Cuts to KidsCare and AHCCCS Will Cost $1 Billion Annually in Federal Funds : On March 25, the Arizona Health Care Cost Containment System (AHCCCS) released a study finding that the elimination of Arizona222s Children222s Health Insurance Program ( C HIP ) program, KidsCare , and cuts to its Medicaid agency, AHCCCS , will cost Arizona $1 billion annually in federal matching funds. The federal government matches Medicaid funds at a rate of 2 -1 and CHIP funds at a rate of 3 -1. The FY2011 budget signed by Governor Jan Brewer (R) on March 18 eliminates $400 million in s tate expenditures by eliminating KidsCare and removing 310,000 individuals from AHCCCS. The Patient Protection and Affordable Health Care Act , the new federal health care reform law, prohibits both of these changes. The state legislature has until June 15 to prevent the termination of KidsCare and until January 2011 to restore Medicaid funding before the cuts take effect ( Phoenix Health News Examiner, 3/26 ; Arizona Capitol Times, 3/25 ). California Assembly Committee Approves Legislation Requiring Approval of Health Insurance Rate Increases: The California Assembly Health Committee approved a bill ( AB 2578) on March 23 that would require state approval of health insurance premium increases. Under the approved legislation, the California Department of Insurance would review rate increases over 7 percent for health insurance companies and PPOs and the California Department of Managed Care would review HMOs222 rate increases. A similar measure previously passed the Assembly in 2007 but was defeated in the Senate . The bill now goes before the full Assembly ( Los Angeles Times, 3/24 ). Assembly Committee Rejects New Alcohol Tax : On March 23, the California Assembly Health Committee rejected Assemblyman Jim Beall222s (D) proposed five-cent tax on alcoholic drinks ( AB 1694). The proposed tax would have affected the largest 23 percent of alcohol producers in California and raised $750 million annually to fund a lcohol abuse treatment programs. This is the third time Assemblyman Beall has brought such a measure before the Assembly Health Committee and he plans to bring the measure up again in April ( San Jose Mercury News, 3/23 ). Poll Shows Californians Oppose Cuts to Mental Health Programs: A poll published on March 24 by the Field Research Corporation and funded through a grant from the California HealthCare Foundation found that 65 percent of Californians oppose budgetary cuts to mental health programs. The poll also found that 71 percent of respondents oppose cuts to health care programs for the poor and disabled and 77 percent oppose cuts to health care programs for the elderly and disabled. The Field Research Corporation conducted the poll March 9 to March 15 through a telephone survey of 503 registered voters ( California Healthline, 3/25 ). Co lorado Govern or Signs Law Barring Different Premiums for Men and Women : On March 29, Governor Bill Ritter (D) signed a measure ( HB 1008) into law that bars health insurers from charging men and women SAMHSA222s Weekly Financing News Pulse: State and Local Edition March 31, 2010 3/31/2010 3 different rates for the same coverage packages. The law could affect up to 140,000 Coloradan women who currently pay higher premiums . Most other states already have similar laws ( Denver Business Journal, 3/29 ; Kaiser Health News, 3/30 ). Florida House and Senate Committees Approve Budgets : On March 23, the Florida House Full Appropriations Council on Education and Economic Development passed a $67.2 billi on budget and, on March 25 , the Florida Senate Ways and Means Committee approved a $68.6 billion budget. Both budgets are an increase from the current fiscal year spending level of $66.5 billion. The House budget increases health care spending by 8.72 percent but reduces Medicaid reimbursements by 4.6 percent for nursing homes and hospices and 4.3 percent for hospitals. The Senate budget contains similar cuts but has a contingency spending plan to utilize a Congressional extension of $880 million in Amer ican Recovery and Reinvestment Act (ARRA) funding to eliminate those cuts if Congress approves that extension. Both budgets now move to votes before the full legislative bodies ( Busi ness Week, 3/24 ; Business Week, 3/26 ). St. Lucie Medical Center to Open Behavioral Health Unit : The St. Lucie Medical Center is opening a secure 24 - bed behavioral health unit to receive patients detained under the Baker Act . The Baker Act allows authorities to take dangerous mentally ill individuals into custody. The new $1 million unit will provide therapy and medication management and create 15 new staff positions ( Treasure Coast Palm, 3/26 ). Georgia Update: House Appropriations Committee Approves New Hospital Fee , HMO Sales Tax Exe mption Revoked : On March 23, the Georgia House Appropriations Committee approved legislation ( HB 307) enacting a 1.45 percent fee on hospitals 222 patient revenues , after months of negotiations between hospitals , lawmakers, and Governor Sonny Perdue (R). The Georgia Hospital Association projects that the fees, which cannot be passed on to patients, will raise $225 million annually. State officials plan to utilize $50 million of the revenue to increase Medicaid reimbursements and $175 million to pay for Medicaid services . The bill now moves to the full House. In addition, h ealth maintenance organizations (HMOs) that provide health care services under Medicaid , although exempt from the new fees, are likely to lose their sales tax exemption due to legislation ( HB 1170) approved by the Georgia House on March 22. HB 1170 bill now moves to the Georgia Senate ( Atlanta Journal -Constitution, 3/23 ; The Macon Telegraph, 3/24 ). Phoebe Putney Memorial Hospital Reopens Behavioral Health Unit: On March 24, Phoebe Putney Memorial Hospital reopened a renovated behavioral health unit after temporarily halting behavioral health services because of a physician shortage. The newly opened unit has 23 beds , while a separate behavioral health unit with 15 beds for seniors opened February 16 ( Albany Herald, 3/24 ). Senate Approves Drug Database Bill: On March 24, the Georgia Senate approved legislation ( SB 418) creating a prescription drug monitoring program (PDMP) for doctors and pharmacists to track SAMHSA222s Weekly Financing News Pulse: State and Local Edition March 31, 2010 3/31/2010 4 pr escription drug usage and prevent abuse. The bill calls for the Georgia State Board of Pharmacy to maintain the data and utilizes fines and prison time to dissuade unauthorized access to the database or misuse of the information. The bill now goes before the Georgia House ( Georgia Public Broadcasting News, 3/24 ; Savannah Morning News, 3/26 ). Lawsuit Alleges State Provides Inadequate Mental Health Services to the Deaf : On March 1 , Renita Be lton of Gwinnett County and Matthew Erickson of Harris County filed a federal lawsuit against the state of Georgia. They allege that the state violated the Americans with Disabilities Act (ADA) and the e qual protection c lause of the U.S. Constitution by f ailing to pair deaf patients in the mental health system with providers who understand American Sign Language and deaf culture. A spokesperson for the Georgia Department of Behavioral Health and Developmental Disabilities (DBHDD) says that the department is already working on plans to improve the quality of care provided to deaf patients. The DBHDD serves approximately 200 deaf individuals. The plaintiffs request that the federal government allow 350 other individuals to join the suit as a class ( The Atlanta Journal -Constitution, 3/26 ). Hawaii DHS Downsizing Operations : On March 29, the Hawaii Department of Human Services announced that it will close 31 offices and laying off 228 workers to consolidate operat ions into two processing centers in Honolulu and Hilo starting October 1. DHS intends to use these new measures to help facilitate faster processing of applications and renewals for social services, such as health care, due to current increased demand. State officials project that the downsizing operation will save $8 million ( Business Week, 3/30 ). State Shifting Behavio ral Health Services to QUEST : The Hawaii Department of Health (DOH) is shifting behavioral health services for QUEST members to QUEST, a managed care program for low -income Hawaiians that currently only provides general medical services . In an effort to integrate physical and behavioral health, t he DOH , which provides psychiatric services to 1,700-2,000 individual s in QUEST plans , hoped to transition behavioral health services to QUEST in April, but the Hawaii Department of Human Services (DHS) postponed it to July, citing budget deficits. In addition to the budget problem, critics have sited other concerns about the proposed transition, including a shortage of psychiatrists willing to treat QUEST patients and a lack of coverage for supportive housing ( Honolulu Star Bulletin, 3/28 ). Idaho House Approves Budget with Medicaid Cuts : On March 24, the Idaho House approved a $1.55 billion budget. The budget reduces Medicaid funding by 3.5 percent from FY2010 level s . The measure now moves to the Idaho Senate ( The Associ ated Press via Canadian Business, 3/24 ). State to Delay Medicaid Payments until Next Fiscal Year: The Idaho Department of Health and Welfare (DHW) is delaying all Medicaid reimbursements by at least three weeks. The department is delaying reimbursement payments for nursing homes and hospitals until the new fiscal year begins on July 1 because it has depleted the current fiscal year222s Medicaid budget . The delays are part of an effort by SAMHSA222s Weekly Financing News Pulse: State and Local Edition March 31, 2010 3/ 31/2010 5 the DHW to cover its projected FY2010 $27 million shortfall . State officials project th at the changes will result in a reduction of $88 million in federal matching funds ( Twin Falls Times - News, 3/26 ; KPVI, 3/28 ). Iowa House Approves Legislation Requiring Behavioral Health Coverage for Veterans : On March 25, the Iowa House approved legislation ( SF 2201) requiring private health insurers to provide veterans with mental health and substance abuse coverage. Lawmakers project that the additional coverage will require a $5 monthly premium increase. The bill now moves to the Iowa Senate ( Dubuque Iowa Telegraph Herald Newspaper, 3/27 ). Massachusetts Boston City Council Requires City Retirees to Join Medicare: On March 24, the Boston City Council voted to require city retirees to enroll in Medicare w hen they turn 65 , exempting those who have already retired. The Council projects that the measure will redu ce municipal health care costs ( The Boston Globe, 3/25 ). Maryland Senate Approves Budget , Reduces Medicaid and Mental Health Funding : On March 24, the Maryland Senate approved a $31.9 billion budget includ ing a $101.1 million reduction in Medicaid funding and an $800,000 cut in gran ts for community mental health programs. The budget now goes to the Maryland House , which faces an April 5 deadline to pass the legislation ( The Washingto n Post, 3/24 ; Maryland General Assembly, 3/30 ). Senate Approves Legislation to Increase Medicaid Fraud Detection: On March 2 3 , the Maryland Senate approved a bill ( SB 279) allowing individuals with knowledge of Medicaid fraud to file suit against those suspected of committing fraud, and receive a portion of the damages. The bill would enable the state to collect up to three times the amount of the fraudulent billing as a civil penalty. Under the ap proved legislation, Maryland could also j oin multi -state lawsuits in cases of federal fraud. In addition, the bill requires the state to sign off on fraud cases before the cases may advance to litigation . State officials estimate that 5 to 10 percent of the $6 billion Maryland spends annually on Medicaid reimbursements are fraudulent claims. Similar legislation failed to pass the Senate last year. The bill now goes before the Maryland House Judiciary Committee ( The Baltimore Sun, 3/23 ) . Governor Forms Task Force to Oversee Reform Implementation : On March 24, Governor Martin O222Malley (D) announced the creation of a 12 -person Maryland Health Care Reform Coordinating Council , led by Lieutenant Governor Anthony Brown (D) and State Health and Mental Hygiene Secretary John Colmers . The council will provide the governor with a report on national health care implementation by July 15 and a comprehensive implementation plan by January 1, 2011 ( The Baltimore Sun, 3/25 ). House and Senate Committees Approve Legislation Lowering MHIP Premiums : On March 25 and March 27, the Maryland Senate Finance Committee and the Maryland House Health and Government Operations Committee approved legislation ( HB 1564 and SB 1125) designating the Maryland Health SAMHSA222s Weekly Financing News Pulse: State and Local Edition March 31, 2010 3/31/2010 6 Insurance Program (MHIP) as the state222s high -risk insurance pool un der the new federal health care reform law, the Patient Protection and Affordable Health Care Act . The designation would entitle MHIP to 1 to 2 percent of the $5 billion in federal funds available to high-risk insurance pools to lower premiums and cover the cost of enrolling individuals with pre- existing conditions. If Maryland222s bills become law, they could take effect as soon as June. The bill now moves to the full House and Senate ( Baltimore Business Journal, 3/29 ). Baltimore Mayor Proposes Budget , Cuts School -Based Health Services : On March 24, Mayor Stephanie Rawlings -Blake (D) proposed a $2.2 billion budget, with $121 million in cuts, including cuts for a needle- exchange program and for school -based health services. The Baltimore Health Department would retain the majority of its city fu nding and absorb the Commission on Aging and Retirement Education to save costs. Mayor Rawlings-Blake plans to release an updated budget with $50 million in new revenue on April 12 ( The Baltimore Sun, 3/27 ; Business Week, 3/24 ). Michigan Senate Approves Health Care Cuts: On March 24, the Michigan Senate voted to cut $107.5 million of the Michigan Department of Community Health222s general fund budget. The Senate also eliminat ed M edicaid eligibility for 18 and 19 year olds to save $10 million, reduced Medicaid physician payments by 4 percent, restored Medicaid dental services for adults, and reduced funding for non- Medicaid mental health services. The legislation now moves to the Michigan House ( The Detroit News, 3/24 ). House Republicans Propose Budget , Cut Medicaid and Mental Health: On March 23, Michigan House Republicans proposed a package to eliminate the state222s deficit without increasing taxes. The proposal claims to reduce the deficit by $1.5 billion through cuts and reforms. The proposal cuts funding for the Michigan Department of Community Health by 1.3 percent, or $167 million, with $57.8 million coming from non- Medicaid funding for mental health programs. The proposal also eliminates over $1 million in funding for mental health and disability assistance for minorities ( Michigan Messenger, 3/25 ; Associated Press, 3/25 ; Michigan House Republicans, 3/23 ). Mississippi State Proposes Temporary Medicaid Reimbursement Cuts : The Mississippi Division of Medicaid intends to cut its reimburs ement payments to providers from April to June; however, the state requires f ederal approval before making the cuts. The Mississippi Legislature intends to provide the Mississippi Division of Medicaid with more funding in April ( AP via WREG, 3/26 ). Missouri House Approves $23 Billion Budget: On March 25, the Missouri House approved a $23 billion budget containing $200 million in cuts and count ing on Congressional approval of $300 million in federal Medicaid aid from an extension of the ARRA . If approved, that $300 million would pay for physicians , nursing homes, and prisoners222 health care. The budget now moves to the Missouri Senate ( Business Week, 3/25 ; St. Louis Public Radio, 3/25 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition March 31, 2010 3/31/2010 7 Federal Audit Determines Missouri Overbilled Medicaid by $20.5 M illion : A federal audit conducted by the U.S. Department of Health and Human Services (HHS) determined that between FY2004 and FY2006 Missouri school districts over billed Medicaid for administrative costs of federal school-based health care programs. The audit found that $4.2 million of the $15.3 million claimed in administrative costs in the St. Louis and Springfield school districts was not eligible for federal reimbursement. The audit also determined that other school districts received a total of $16.3 million in federal reimbursement s for which they were ineligible during the same period. The Centers for Medicare & Medicaid Services (CMS) will determine whether Missouri must repay the funds. The Missouri Department of Social Services disputes the findings of the audit and could appeal, which could ultimately put the case before a federal judge ( St. Louis Post -D ispatch, 3/27 ). Montana Yellowstone County to Vote on Mental Health Service Levy : On March 23, the Yellowstone County Commission voted unanimously to place a 3.2 mill levy for mental health services on the June 8 primary ballot. County officials estimate that the proposed levy would raise approximately $873,000 annually. The revenue would go to an account controlled by the Yellowstone County Sheriff222s Department and fund mental health services designed to keep the mentally ill out of hospitals and jails ( Billings Gazette, 3/24 ). New Mexico Neuromedical Research Foundation Funds Mental Health Research: On March 25, the Neuromedical Research Foundation announced a $20,000 donation to the Mind Research Network. The Mind Research Network will use the contribution to continue its work on the prevention, diagnosis, and treatment of mental illnesses and brain disorders ( Bizjournals via MSN, 3/25 ). New York State Insurance Regulators Seek Rate Approval Authority : The New York State Insurance Department has proposed that the state grant it approval authority over insurance premium increases. State officials claim that approval authority is con sistent with oversight outlined in the Patient Protection and Affordable Health Care Act , the new federal health care reform law. The department previously had approval authority, but the state legislature removed that power 15 years ago. The proposed pl an would also require insurers to increase the minimum percentage of premiums spent on medical care from 75 percent for small group coverage and 80 percent for individual direct -pay coverage , to 85 percent across the board. The state plan also requires public hearings and adequate prior notice on rate increases. Governor David Paterson 222s (D) a dministration projects that these changes will result in savings of $70 million in FY2011 and $151 million in FY2012, while the consulting firm Milliman projects savings of $3.3 million and $13.7 million for the same years ( The Buffalo News, 3/27 ) . City of Batavia Launches Mental Health Court: On March 23, the City of Batavia began a new mental health court program. The program gives counseling and assistance to mentally ill defendants and attempts to remove them from the traditional criminal justice system while preserving public safety. SAMHSA222s Weekly Financing News Pulse: State and Local Edition March 31, 2010 3/31/2010 8 Thus far, t he Batavia City Co urt has referred ten cases to the mental health court. The program is the seventh of its kind in New York222s 8th Judicial District ( The Daily News, 3/24 ) . North Carolina Governor Announces New Medicaid Anti -Fraud Measures: On March 24, Governor Beverly Perdue (D) announced the creation of a new system to deter Medicaid fraud. Under the new system, IBM is providing the state with software to examine Medicaid claims for suspicious trends at no initial cost. The state will reimburse IBM 10 percent of the fraudulent billings uncovered by the North Carolina Department of Health and Human Services (DHHS) up to $5.4 million annually. The state has also create d new Medicaid 223SWAT224 teams of investigat ors and is encouraging private citizens and health care providers to report fraud through a new campaign. The new measures begin early this summer. The new fraud detection efforts come as s tate officials project that North Carolina222s Medicaid system will be $250 million over budget this year ( The Business Journal, 3/24 ; Business Week, 3/24 ). Ohio Fairfield Department of Health Budget Rejected by DAC, Levy Considered to Cover Shortfall : On March 29, the District Advisory Council (DAC), which is comprised of officials from each Fairfield County municipality and tasked with approving funding for the county healt h d epartment, rejected the Fairfield County Health Department222s proposed $2.7 million budget d ue to its increased cost to local governments. The Fairfield County Board of Health is now considering a mill levy for the November ballot to help reduce the deficit and the burden on local cities, towns , and villages. T he proposed budget now goes before the Fairfield County Budget Commission in April ( Lancaster Eagle Gazette, 3/30 ). Pennsylvania House Approves Budget : On March 23, the Pennsylvania House approved a $29 billion budget that increases spending by $1.1 billion over the current fiscal year level of $27.9 billion. The majority of the spending increase will fund human services programs and prisons. The budget now moves to the Pennsylvania Senate ( Delaware County Times, 3/25 ; Business Week, 3/24 ). Alternative Sentencing Program Budget Cut : The Pennsylvania Commission on Crime and Delinquency will fund the Renaissance Crossroads program with a $678,000 gr ant this year, $27,000 less than usual. The program began in 2001 with a $705,000 grant from the commission, which the state has renewed each subsequent year at the same level. Renaissance Crossroads officials say that the program can compensate for the cuts through new requests to the Lebanon County Commission on Drug and Alcohol Abuse for patient counseling reimbursement payments. Renaissance Crossroads is an alternative sentencing program that offers a 34 -month substance abuse treatment program as an alternative to incarceration ( Lebanon Daily News, 3/28 ). GlaxoSmithKline Awards Berks County Nonprofit Behavioral Health Care Provider $40,000 Grant : GlaxoSmithKline has awarded FairView Counseling a nd The Play Therapy Center a $40,000 grant as part of its IMPACT awards, which gives funding to providers who offer services to the underserved. FairView uses a sliding scale to determine payments for its behavioral health services and one third of its pa tients SAMHSA222s Weekly Financing News Pulse: State and Local Edition March 31, 2010 3/31/2010 9 are uninsured or underinsured. FairView will use the grant to subsidize its fee scale ( Reading Eagle, 3/27 ). Texas Update: Governor Announces New Grants for Veteran222s Mental Health Programs : On March 25, Governor Rick Perry (R) announced that the Texas Department of State Health Services (DSHS) is awarding $1.75 million in competitive grants for mental health programming for veterans. The grants fund programs that help veterans find access to treatment, expand trauma therapy services , and promote support groups. The grant funding comes from the $6.2 million set aside in November for the expansion of mental health services for veterans and their families. The Center for Health Care Services , the Central Texas Collaborative , the East Texas North Collaborative , the East Texas South Collabo rative, the El Paso Mental Health and Mental Retardation (M HMR ) Center , the Harris County MHMR Authority , the Hill County MHMR Center , Lubbock Regional MHMR Center , the North Texas Behavioral Health Authority , and Tarrant County MHMR Service have each been awarded grants of $175,000. The total value of grants awarded thus far is $4.4 million ( Texas Insider, 3/25 ) . Construction Begins on Hidalgo County222s First Outpatient Substance Abuse Center : On March 2 6, construction began on a $3 million adolescent outpatient substance abuse center in Hidalgo County. Hidalgo County provided $650,000 to purchase the 6.3 -acre building site and to fund utilities and building maintenance for the center. Upon completion, the center will service up to 150 adolescents. The county will maintain the facility and allow a private provider that accepts all payment forms to operate services. State and county officials project that construction on the center will be completed in May 2011 ( The Monitor, 3/26 ).
