WeeklyFinancingNewsPulseStateandLocalEditionfinal20091111.pdf (PDF | 251.84 kb)
SAMHSA222s Weekly Financing News Pulse: State and Local Edition November 11, 2009 11/11/09 1 SAMHSA222s Weekly Financing News Pulse: State and Local Edition Arizona Arkansas California Colorado Florida Hawaii Indiana Kansas Kentucky Maine Maryland Massachusetts Michigan Minnesota Missouri New York North Carolina Ohio South Carolina South Dakota Texas 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/enetwork/success.aspx For quest ions or comments, please contact Kevin Hennessy ( kevin.hennessy@samhsa.hhs.gov ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition November 11, 2009 11/11/09 2 Around the States: State and Local Behavioral Health Financing News Arizona AHCCCS Director Resigns, Governor Appoints Replacement : Arizona Health Care Cost Containment System (AHCCCS) Director Anthony Rodgers resigned November 4 to take a position in the private sector and Governor Jan Brewer (R) appointed former AHCCCS Deputy Director Thomas Betlach to the position. Rodgers has hea ded AHCCCS, the state222s Medicaid program, since his appointment in 2003 ( Arizona Republic, 11/4 ). Arkansas Update: DOH Announce Budget Cuts : On November 4, the Arkansas Department of Health (DOH) announced its plan to cut $3.6 million from its $400 million budget as part of Governor Mike Beebe222s (D) $100 million state budget cut. Most of the planned cuts will come from the Arkansas Community Health Centers and the Trauma System222s Emergency Service. In addition, DOH will make 1 percent cuts to numerous programs and refrain from filling vacant positions ( Arkansas Business, 11/4 ; KTHV, 11/6 ). Governor Estimates Effects of N ational Health Care Reform on Arkansas222 Budget : In a radio appearance on November 6, Governor Mike Beebe (D) said that the recently approved House health care reform legislation ( HR 3962 ) could cost the state $205 million in 2015 ( AP via KATV, 11/6 ). California State Prisons to Expand Psychiatric Care, Funding in Question: On November 6, California Department of Corrections and Rehabilitation (DCR) officials announced a five - year plan to increase state prisons222 psychiatric care capacity by 2,600 slots. The plan comes after federal judges ruled that health care in the state222s prisons violates the constitutional ban on cruel and unusual punishment, giving the state until November 12 to present a plan for reducing the prison population. Under DCR222s plan, which would not reduce the prison population but would address many of the prisons222 underlying health care issues, most of the newly - created mental health beds would be housed in converted juvenile prisons. However, funding for the plan remains in doubt. In 2007, the California Legislature approved $7.3 billion in prison construction bonds but the legislature has not approved those funds for DCR222s new mental health centers. Furthermore, use of the bonds would be contingent on state agency authorization and on the successful sale of the bonds. Healt h care in California222s prisons has been under federal receivership since 2006 due to quality concerns ( San Francisco Chronicle, 11/7 ). Colorado Governor Proposes FY2010 - 11 Budget, Medicaid Affected: On November 6, Governor Bill Ritter (D) unveiled his budget proposal for the 2010 - 2011 fiscal year, designed to close a $1 billion shortfall through a combination of spending cuts and revenue enhancements. Among other proposals, Governor Ritter222s budget would cut Medicaid funding by $28 million by reducing provider reimbursements and capping nursing home costs ( Denver Post, 11/7 ). Breckenridge Symbolically Legalizes Marijuana Possession: In a vote on November 3, nearly 72 percent of Breckenridge residents voted to legalize possession of up to one ounce of marijuana for adults age 21 SAMHSA222s Weekly Financing News Pulse: State and Local Edition November 11, 2009 11/11/09 3 and over. However, the city222s measure is merely symbolic because marijuana possession remains illegal under federal and state law ( AP via Washington Post, 11/3 ). Florida Officials Estimate Cost of National Health Care Reform f or Florida: On November 3, the Florida Agency for Health Care Administration (AHCA) reported that Medicaid expansions under national health care reform would cost the state between $608 million and $1 billion annually beginning in 2015. The AHCA estimates that, under the House bill ( HR 3962 ) passed November 7, Florida222s Medicaid expenses would reach $7.4 billion in 2015, with the federal government paying $6.4 billion and Florida paying $1 billion. In comparison, under the Senate Finance Committee222s bill, the total program costs would reach $4.2 billion in 2015 with the federal government contributing $3.6 billion and the state contributing $600 million ( Sun - Sentinel , 11/3 ). Hawaii EUTF Says Budget Cuts May Delay or Complicate Employee Health Plan Enrollment : The Hawaii Employer Union Health Benefits Trust (EUTF) sent letters to its 165,000 beneficiaries informing them that state budget cuts and furloughs will affect the EUTF222s ability to quickly and properly process health plan enrollment information. The letter warned beneficiaries that the EUTF may improperly deduct premiums from employee checks for the beginning of 2010 and that beneficiaries switching plans during the 2010 open enrollment season may encounter initial difficulties verifying their new coverage at health service providers. According to the letter, both issues may arise due to a smaller- than - usual staff and newly - complicated health plan transitions ( KHON, 11/8 ; Honolulu Star Bulletin, 11/10 ). Indiana Governor Cuts Departmental Spending by 10 Percent, Reduces Medicaid Reimbursements : O n November 6, Governor Mitch Daniels (R) announced budget cuts designed to close the state222s $309 million current - year shortfall. Among other budgetary changes, the governor instructed all state departments to cut their budgets by 10 percent and announced that the state would cut some Medicaid provider reimbursement rates ( AP, 11/7 ). Following the governor222s announcement, the Indiana Family and Social Ser vices Administration (FSSA) announced November 10 that it will cut hospital222s Medicaid reimbursements by 5 percent, saving the state $10.6 million in the current fiscal year. The FSSA also announced other departmental spending reductions, including combining county offices, leaving vacant positions unfilled, ending the state222s Naturally Occurring Retirement Communities contract, and placing a moratorium on enrollment in the state222s Residential Community Assistance Program. Combined, FSSA222s non- Medicaid changes will save the department $23.4 million ( Indianapolis Star, 11/10 ). Tippecanoe County Receives Grant for Jail - Based Mental Health Counselor s : The Tippecanoe County Sherriff222s Department has received a $60,000 grant from the state to fund a mental health counselor at the Tippecanoe County Jail for the next two years. The jail has 553 inmates, many of whom suffer from mental illness but have d ifficulty accessing treatment during their incarceration ( Journal and Courier, 11/9 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition November 11, 2009 11/11/09 4 Kansas Non- Profit Receives Mental Health Housing Grant : The Kansas Housing Resource Corp. awarded a $100,000 Tenant Based Rental Assistance Grant to Breakthrough, a non - profit organization helping people with mental illness. The grant will help low - income mentally ill residents find rental housing ( Wichita Business Eagle, 11/3 ). Kentucky Army Hospital Expands M/SU Facility : On November 6, the Ireland Army Hospital in Fort Knox opened a new behavioral health center, expanding access to M/SU care ( AP via Lexington Herald - Leader, 11/5 ). Maine Voters Expand Access to Medical Marijuana : On November 3, Mainers approved Ballot Question 5, expanding the list of medical conditions qualifying for legal medical marijuana, creating a state - regulated registry for qualified marijuana users, and allowing for a statewide system of storefront marijuana distribution centers. Question 5 passed with roughly 58 percent of the popular vote ( Bangor Daily News, 11/4 ). Maryland Update: Union Proposes Staff Cuts to Keep M/SU Center Open : After Governor Martin O222Malley (D) proposed closing the Upper Shore Community Mental Health Center (USCMHC) in Chestertown, the American Federation of State, County, and Municipal Employees (AFSCME) offered a plan to cut staffing and capacity in order to keep the center open. AFSCME222s plan would cut the USCMHC222s staff from 90 to 70 and reduce the number of facility beds but allow the USCMHC to continue offering all of its current services. Governor O222Malley said that he will review the proposal and make his decision in the context of a $300 million budget cut expected later in November ( Baltimore Sun, 11/5 ). Massachusetts Patrick Administration Ends Negotiations Over Incarceration of Seriously Mentally Offenders : Because of the state222s current financial situation, Governor Deval Patrick222s (D) administration has shelved plans to build specialized treatment units for seriously mentally ill inmates currently housed in solitary confinement. The plans were part of negotiations to settle a lawsuit brought by the Disability Law Center against the Massachusetts Department of Corrections for inhumane treatment of the seriously mentally ill. Without the plan, negotiations between the parties have collapsed and the case will proceed to trial in U.S. District Court ( Boston Globe, 11/10 ). Legislative Panel Issues Recommendations to Combat Opioid Abuse : The 13 - member Massachusetts OxyContin and Heroin Commission issued a report November 5, outlining a multi - pronged effort for combating opioid abuse. The report recommends instituting jail - based diversion programs and school- based drug counselors; using tamper - proof prescription pads for all opioid prescriptions; and overhaul ing the state222s prescription drug monitoring program (PDMP) ( AP via Boston Herald, 11/5 ). State Report Finds Student Health Plans Have Above Average Profit Margins : A report released by the Massachusetts Office of Health and Human Services222 Division of Health Care Finance and Policy found SAMHSA222s Weekly Financing News Pulse: State and Local Edition November 11, 2009 11/11/09 5 that health insurers profit margins are much higher on the nearly 100,000 health plans sold to the state222s college students than on plans sold to the general public. The report found that, on average, 30 percent of student premiums go towards insurers222 profits and administrative cost, compared with only 12 percent for other plans sold in the st ate. Massachusetts regulations require students to obtain health insurance but allow insurers to impose coverage limitations that do not meet the minimum standards set for other plans under the state222s 2006 health care reform law ( Boston Globe, 11/6 ). Hospital and Insurers Reach Cost Control Agreement : Children222s Hospital Boston has reached agreement with the area222s three major health insurers227 Blue Cross Blue Shield of Massachusetts , Harvard Pilgrim Health Care , and Tufts Health Plan227 and the state Medicaid program to limit its fee increases in an effort to control rising pediatric heath care costs. Under the agreement, the insurers will contr ibute $10 million in savings to fund the hospital222s pilot programs, which seek higher quality care at lower cost ( Boston Globe, 11/4 ; Kaiser Health News, 11/4 ). Michigan Interim OFIR Ruling Limits BCBS222 MediGap Rate Increase : On November 6, an administrative law judge for the Michigan Office of Financial Insurance Regulation (OFIR) issued an interim decision blocking Blue Cross Blue Shield (BCBS) of Michigan222s requested 31 percent rate increase for supplemental Medicare insurance programs, known as MediGap policies. Under the decision, OFIR ruled that BCBS may raise its MediGap rates by 3.8 percent beginning February 1; however, Michigan Insurance Commissioner Ken Ross will make the final decision on the case in mid - December and BCBS may appeal the interim ruling ( Detroit News, 11/7 ). Macomb County Cuts Health Budget by 8 Percent : On November 4, the Macomb County Commissioners voted to cut the county health d epartment222s budget by $2.1 million as part of an effort to close the county222s $15.7 million deficit. Among other changes, the 8 percent cut to the department222s budget will reduce or eliminate programs for seniors and lower- income residents ( Detroit Free Press, 11/5 ). Berrien County Receives DOJ Grant for Probation Behavioral Health Court : The U.S. Department of Justice (DOJ) has a warded Berrien County a $342,958 grant to fund a behavioral health court for probationers. The new court will supplement rather than replace the county222s diversionary court, helping non- violent offenders receive substance abuse services as part of their p robation ( South Bend Tribune, 11/8 ). BCBS of Michigan Awards Grants to 47 Free Health Clinics : Blue Cross Blue Shield (BCBS) of Michigan is awarding a total of $1 million in grants to 47 free health clinics across the state. The grants will fund primary care, behavioral health care, case management, dental care, and prescription drugs ( PRNewswire, 11/5 ). Foundation Grant Funds Meth Lab Raids : A $10,000 grant from the Battle Creek Community Foundation to the Substance Abuse Council222s Meth Task Fore will provide equipment for police officers called to SAMHSA222s Weekly Financing News Pulse: State and Local Edition November 11, 2009 11/11/09 7 Veterans Administration (VA) benefits and assisted them in applying for and receiving VA benefits prior to enrolling in Medicaid, shift ing some of their costs from Medicaid to the VA. Though the county stopped tracking specific savings in October, the program will continue to operate ( Post Journal, 11/7 ). North Carolina State Budget Cuts Force Mecklenburg County to Cut Behavioral Health Services : In addition to $4 million in county cuts, Governor Beverly Perdue222s (D) state budget cuts reduced Mecklenburg County222s Area Mental Health Department budget by $1 .5 million. Because of the cuts, the county is delaying the scheduled opening of a 16 - bed mental health crisis center and reducing funding for a program that treats pregnant women with substance abuse problems ( Charlotte Observer, 11/9 ). Behavioral Health LME Receives Foundation Grant : The behavioral health local management entity (LME) for Bladen, Columbus, Robeson, and Scotland Counties, Southeastern Regional Mental Health, Develo pmental Disabilities and Substance Abuse Services , received a $432,856 grant from the Kate B. Reynolds Charitable Trust for behavioral health specialists at select primary care facilities. The grant will expand access to both behavioral health care and primary care while improving care coordination ( Laurin burg Exchange, 11/4 ). Ohio State Funding Expands Capacity at Lucas County Mental Health Facility : The Ohio Department of Rehabilitation and Correction (DRC) added $482,000 to Lucas County222s Correctional Treatment Facility222s budget, increasing the facility222s total funding to $4.88 million. With the additional funding, the facility reopened a floor October 1, adding 24 new beds and 10 new staff members to expand treatment for non- violent mentally ill offenders ( Toledo Blade via Behavioral Health Care Central, 11/8 ). South Carolina DHHS Finds Medicaid Pilot Program to Reduce Drug Abuse Saves Money : The South Carolina Department of Health and Human Services (DHHS) found that a Medicaid pilot program targeting beneficiaries who demonstrated drug seeking behavior patterns has saved the state $320,000 this year. Under the pilot, the 48 participating Medicaid beneficiaries may only fill prescriptions at one pharmacy in the state; however, the program does not limit the number of prescriptions beneficiaries may receive, nor the doctors they may visit. DHHS plans to expand the program to another 200 beneficiaries with similar drug - use patterns ( Greenville New s, 11/5 ). South Dakota Governor Estimates State222s Medicaid Costs Under National Health Care Reform : Governor Mike Rounds (R) announced the that Medicaid expansion in the health care reform legislation ( HR 3962 ) approved by the U.S. House November 7 would add 52,300 new South Dakota residents to Medicaid, costing the state an additional $134 million between 2015 and 2019,. The governor said he gave the estimate to U.S. Rep. Stephanie Herseth Sandlin (D), causing her to vote against the bill ( AP via KTIV, 11/10 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition November 11, 2009 11/11/09 8 Texas Governor Announces Plan to Increase Veterans Mental Health Funding : On November 9, Governor Rick Perry (R) announced plans to add $5 million to the Texas Department of State Hea lth Services (DSHS) budget to expand mental health treatment for veterans and their families. In addition to expanding current treatment and support initiatives and improving an informational website for veterans, some of the funding will establish a new peer- to - peer support group and create family education and support programs ( AP via Houston Chronicle, 11/9 ; Kaiser Health News, 11/10 ; Gov Monitor, 11 /10 ). West Virginia State Officials Predict Medicaid Deficit for 2013; Governor Delays Medicaid Expansion: A spokesperson for the West Virginia Department of Health and Human Resources (DHHR) says the state anticipates a $95 million Medicaid deficit fo r FY2013 and a $169 million Medicaid deficit for FY2014. DHHR officials say those estimates could improve if the economy rebounds or if program enrollment declines; however, enrollment has increased by nearly 11,000 between September 2008 and September 20 09. In addition, with Medicaid cuts expected as part of the FY2011 budget and the December 2010 expiration of ARRA Federal Medical Assistance Percentage (FMAP) increases, state officials do not believe they can sustain the program in its current form ( Charleston Daily Mail, 11/9 ). In related news, Governor Joe Manchin (D) announced that he will delay his previously announced plans to expand Medicaid to all adults earning up to 50 percent of the fede ral poverty level (FPL) until Congress and President Barack Obama act on national health care reform legislation ( AP via Charleston Daily Mail, 11/10 ).
