WeeklyFinancingNewsPulseStateandLocalEditionfinal20091021.pdf (PDF | 182.75 kb)
SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 21, 2009 10/21/09 SAMHSA222s Weekly Financing News Pulse: State and Local Edition Alabama California Connecticut Delaware Florida Hawaii Indiana Kansas Maryland Massachusetts New Hampshire New York North Carolina Ohio Oregon Pennsylvania West Virginia Wisconsin For quest ions or comments, please contact Kevin Hennessy ( kevin.hennessy@samhsa.hhs.gov ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 21, 2009 10/21/09 Alabama Alabama Supreme Court Rules in Favor of Novartis in Medicaid Pricing Case: The Alabama Supreme Court overturned a ruling against Novartis Pharmaceuticals Corporation (NPC) , one of 73 pharmaceutical manufacturers named in a lawsuit filed by the Alabama Attorney General in 2005. The state claimed that NPC provided reporting services that resulted in overpayments to pharmacists and physicians in the Alabama Medicaid program. The Supreme Court found that NPC did not falsely represent pharmaceutical prices to Alabama222s Medicaid program ( Reuters, 10/16 ; The Medical News, 10/20 ). California California Hospital Study Illustrates Impact of Health Care Spending: A study published by researchers from six California research centers in Circulation: Cardiovascular Quality and Outcomes challenges a Dartmouth Atlas of Health Care study222s claim that higher hospital expenditures do not necessarily correspond to better outcomes. The Circulation study analyzed the treatment, outcomes, and associated health care costs of heart failure patients treated in five California hospitals, finding that the hospitals that spent the most on treatment also had the best outcomes ( New York Times, 10/14 ). Report Finds Millions of California Reside nts Would Benefit from Health Reform: A new study by the UCLA Center for Health Policy Research published findings that 93 percent of Californians under 65 would have access to health coverage if Congress passes a national health reform bill. Four million state residents would be eligible for Medi-Cal or would qualify for subsidies to purchase private insurance ( KPBS, 10/19 ). Blue Shield Removed from Cal ifornia222s High - Risk Insurance Pool: California has removed Blue Shield from its high - risk insurance pool due to high premiums. Known as the Major Risk Medical Insurance Program (MRMIP), the program covers more than 6,700 otherwise uninsured Californians that insurance companies deem too high - risk to cover. The state previously warned Blue Shield to lower its premiums, as enrollment dropped to 80 participants last year. Blue Shield will remain in the pool until the new policies take effect on January 1, 2 010 ( Los Angeles Times, 10/15 ). United Way Homelessness Study Exposes Cost of Public Service Administration in Los Angeles: The United Way of Greater Los A ngeles commissioned a study conducted by the University of Southern California (USC) that chronicled the consumption of public services by four homeless people over a two - year period. The study reported five principal cost areas: substance abuse, physical health, mental health, criminal justice, and housing. The study found that permanent housing solutions yield a 43% cost savings. For two years, the total cost to provide public services without permanent housing was over $80,000 greater than the cost to provide permanent housing in addition to support services. When permanent housing was provided, mental health services were the only area with increased costs; however, the associated benefits of regularly seeking mental health services had positive impac ts on the system ( Yuba Net, 10/13 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 21, 2009 10/21/09 Los Angeles County District Attorney Seeks Crackdown on Medical Marijuana Distribution: Los Ange les County District Attorney Steve Cooley aims to shut down medical marijuana dispensaries operating illegally, specifically those that distribute to medically ineligible consumers or whose profits exceed the legal limits. Local municipalities will use ne w policy guidelines published October 19 to determine whether a dispensary is compliant with state law. The Obama Administration has stated that medical marijuana patients with serious illnesses will not be federally prosecuted. Los Angeles has approximat ely 800 medical marijuana dispensaries ( Join Together, 10/15 ; Fox 13 Now, 10/15 ; Join Together, 10/20 ). County Receives Funding to Combat Teenage Alcohol Abuse: The U.S. Department of Education222s (DOE) Office of Safe and Drug Free Schools granted the Santa Cruz County Office of Education $1.3 million to combat teenage alcohol abuse. The funding will pay for prevention education, group counseling, community engagement, and individual treatment ( Santa Cruz Sentinel, 10/15 ). Connecticut Aetna Ends Two CT Medicare Advantage Programs : Aetna Inc. cancelled two Connecticut Medicare Advantage (MA) plans, an HMO and a fee - for - service (FFS) plan, due to low enrollment and federally mandated FFS network implementation. Approximately 200 affected patients will receive a letter from the government outlining alternative MA options available in their county ( Hartford Courant, 10/13 ). The affected enrollees are some of the roughly 660,000 seniors whose insurers are discontinuing their MA plans because of the Center for Medicare & Medicaid Services222 (CMS) new F FS rules (Financing News Pulse 10/9 edition). Delaware New Website Highlights Study of Adolescent Alcohol Abuse : A long - term University of Delaware study, the Adolescent Adjustment Project (AAP), started in the spring of 2006, launched a new website to maintain contact with its 1100 participants. The goals of the study are to examine adolescent alcohol abuse within families as well as the prevalence and development of psychological problems. The study is funded through a grant from the National Institutes of Alcohol Abuse and Alcoholism (NIAA) ( University of Delaware, 10/14 ). Florida USF Receives Its Largest ARRA Grant for M/SU Research: The National Institute on Drug Abuse (NIDA) awarded $1.46 million in American Recovery and Reinvestment Act (ARRA) funding to the University of South Florida (USF), the university222s largest ARRA funding award to date. Awarded over a two - year period, USF plans to use the funds to develop the USF Center on Co - Occurring Disorders, Justice and Multidisciplinary Research. New researchers will build on existing research conducted to develop treatment programs for inmates for the Florida Department of Corrections ( St. Petersburg Times, 10/19 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 21, 2009 10/21/09 Hawaii Regional Anti - Drug Community Network Receives Federal Grant: The North Hawaii Drug - Free Coalition (NHDFC), a regional network of community groups and agencies serving Kohala, Waikoloa, Waimea and Hamakua, received $125,000 from SAMHSA to combat community youth substance abuse. This is the seventh consecutive year SAMHSA awarded NHDFC the 223Drug Free Communities Continuation Grant.224 According to the Office of National Drug Control Policy (ONDCP), the communities who benefit from these grants report substantially lower rates of marijuana, alcohol, and drug abuse compared to national averages ( Hawaii247, 10/15 ). Successful Implementation of V3 Benefit System for Hawaii222s State Employer - Union Health Benefits Trust Fund: After an eighteen - month project, the Vitech Systems Group, Inc., a provider of enterprise software to group benefit administrators, reported the launch of the V3 solution for the State Employer - Union Health Benefits Trust Fund (EUTF). The solution replaced EUTF222s enrollment, accounting, and imaging applications, enhancing the benefits administration fo r the state222s 165,000 employees, retirees, and employee dependents ( Reuters, 10/15 ; PR Newswire, 10/15 ). Indiana Update: State Cancels IBM222s Contract to Overhaul Medicaid Program : On October 15 , Indiana officials cancelled IBM Corp.222s $1.34 billion contract to overhaul the state222s Medicaid, food stamps, and welfare benefits administration systems due to slow progress and lack of adherence to a corrective action plan (Financing News Pulse 7/20 edition). Governor Mitch Daniels (R) stated the project will continue working with IBM222s former subcontractors and will build on pieces of the legacy system to complete the effort ( Computer Week, 10/19 ; AP via Washington Post, 10/15 ) . Kansas State Faces 12,000 Backlogged Medicaid Applications: After receiving a $40.3 million grant from the Health Resources and Services Administration (HRSA) to update the state222s Medicaid enrollment system to offer online applications, the contractor that processes applications has taken up to four months to process some applications, resulting in a 12,000 - person backlog ( Kansas City Star, 10/19 ). Maryland School for Children with Autism Opening at Finan Center: Sheppard Pratt, a nonprofit behavioral health system, is opening an educational center for autistic children next month at the Jefferson School campus at the Finan Center, adding to existing centers in Hunt Valley, Gaithersburg and Westminster. This new school will address a growing need, as Allegany County reported 51 new autism diagnoses in its p ublic school system, and the population of those with autism has doubled since 2005 ( Cumberland Times News, 10/17 ). Massachusetts Report Recommends Ways to Make State Health Care Affordable: A report by the Boston - based non - profit, Access Project, proposes expanding eligibility requirements for subsidized insurance plans, accounting for out - of - pocket expenses. The report argues for removing medical debt from credit SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 21, 2009 10/21/09 reports, giving low - income employees the option to qualify for subsidized plans, and reimbursing copayments to Health Safety Net patients ( WBUR, 10/15 ). http://www.wbur.org/2009/10/15/medical - debt Health Insurance Coverage Rates Remain Constant : The Urban Institute released a report on behalf of the Massachusetts Division of Health Care Finance and Policy with the results of the 2009 Massachusetts Health Insurance Survey. The state retains the highest health care coverage rates in the nation despite rising unemployment, with 97 percent of residents covered. The report states that the constant nature of coverage since the state222s 2006 health care reform legislation is due to the impact of reform and ARRA subsidies assisting recently une mployed residents to pay for health care premiums ( The Boston Globe, 10/14 ). New Hampshire Unanticipated Caseload Growth May Cause Mental Health Funding Shortfall: The New Hampshire Legislature assumed a 1 percent increase in caseloads when it allocated funding for mental health services; however, caseloads have increased 13 percent in the first quarter. As a result, state officials anticipate a $9 million shortfall for current - year mental health services. To resolve the expected shortfall, a legislative rules committee approved the N ew Hampshire Department of Health and Human Services 222 (D HHS) request to cap 223functional support services,224 such as gro cery shopping, doctor visits and independent assisted living services for adults at no more than 2.5 hours per day. As another cost - saving measure, D HHS is cutting Medicaid reimbursements for mental health services case management, estimated to yield $4.5 million. The cuts adversely affect both providers and patients, causing layoffs, an increasing financial burden for case management, and decreased access to mental health providers. State officials anticipate another round of cuts scheduled for January 1 ( NHPR, 10/15 ). New York Governor222s Plan to Balance Budget Includes Health Care Cuts: Governor David Pat erson222s (D) plan to cut $3 billion from the state deficit includes reducing Medicaid by $287 million and other health care and behavioral health programs by $184 million ( Lo wer Hudson , 10/16 ). Rochester Substance Abuse Clinic to Open in December: Syracuse Behavioral Healthcare will open and facilitate the SBH Rochester Evaluation Center, a new 25 - bed detoxification center for people battling substance abuse in mid - December. The center will act as a crisis facility for those on the verge of relaps e who need voluntary, short - term assistance, counseling, and access to other community resources ( Democrat and Chronic le, 10/19 ). North Carolina NC Budget Cuts Adversely Affect Mental Health Services: On October 13, North Carolina Governor Beverly Perdue (D) announced plans to reallocate $15 million to reduce the impact of the $1.7 billion North Carolina Division of Heal th and Human Services (DHHS) budget cuts. The DHHS budget had received $1.5 billion less than expected, causing a drastic cut in services ( WRAL, 10/13 ) (Financing News Pulse 8/10 edition) . On October 14, a committee of NC lawmakers convened to discuss the impact of a SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 21, 2009 10/21/09 25 percent budget cut for the DHHS, with the largest cut 227 $400 million 227 in mental health services ( WNCT - CC, 10/15 ). Ohio Report Estimates Rising Health Care Costs: A report by Hewitt Associates estimates that Greater Cincinnati employer- based health care costs will rise 6 percent in 2010, predicting workers will pay an average of $2,211 in premiums and $2,430 in copayments for a total of $411 more annually. Hewitt222s report predicts that combined employer and employee health care costs will increase 5.9 percent, roughly equivalent to the average increases observed in the previous five years and significantly less than the 15 percent annual increases observed earlier in the decade ( The C incinnati Inquirer, 10/17 ). Oregon Deschutes County Receives $4.25 Million to Expand School Based Health Centers: Using funding from a SAMHSA grant, the Oregon Linking Access to Unmet Needs in Children (LAUNCH) program awarded $850,000 per year over five years to Deschutes County Health Services Department to increase early childhood wellness through School - Based Health Centers (Financing News Pulse 10/2 edition). Deschutes County will target children from birth to 8 years of age and focus on child abuse prevention, primary and behavioral health care ( KTVZ, 10/13 ). Pennsylvania Dep artment of Public Welfare Awarded Grants for Excellence in Children and Mental Health Services: The Pennsylvania Department of Public Welfare received $1.3 million from the U.S. Department of Health and Human Services (HHS) for increasing adoption rates from foster care and $1 million from the SAMHSA to provide child mental health services. The funding will expand on existing programs to prevent child abuse and to serve children living with behavioral health issues ( Reuters, 10/15 ). West Virginia Report Finds $116 Million Spent on Substance Abuse Treatment : 223The Financial Burden of Substance Abuse in West Virginia: The Healthcare System,224 a report published by the West Virginia Partnership to Promote Community Well- Being and funded by the U.S. Office of Juvenile Justice and Delinquency Prevention Block Grant , details the financial burden of substance abuse on the health care system. According to the report, $116 million of the health care budget was spent on substance abuse treatment in 2007 and that figure is projected to increase to $201 million by 2010 ( Williamson Daily News, 10/18 ). Wisconsin Poll Finds Support for Small Business M/SU Parity Law : The Milwaukee Addiction Treatment Initiative published a survey that found 65 percent of city residents supported extending M/SU parity to all workers, which they said would only add $2 to the cost of monthly health insurance premiums. The poll comes in light of the legislation proposed by Senator Dave Hansen (D) and Rep. Sandy Pasch (D), The Mental Health and Substance Abuse Parity Act , that would extend M/SU parity laws to employees in companies with 50 or fewer employees (Financing News Pulse 10/13 edition) ( Join Together, 10/13 ).
