WeeklyFinancingNewsPulseStateandLocalEditionfinal20091028.pdf (PDF | 173.19 kb)
SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 28, 2009 10/28/09 1 SAMHSA222s Weekly Financing News Pulse: State and Local Edition Arizona Arkansas California Connecticut Illinois Iowa Maryland Massachusetts Michigan Minnesota Missouri New Je rsey New Mexico New York Ohio Oregon Pennsylvania Texas Virginia West Virginia For quest ions or comments, please contact Kevin Hennessy ( kevin.hennessy@samhsa.hhs.gov ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 28, 2009 10/28/09 2 Around the States: State and Local Behavioral Health Financing News Arizona Update: Governor Proposes Mental Health Plan for Maricopa County : Governor Jan Brewer (R) submitted a six - page behavioral health corrective action proposal to Judge Karen O222Conner on October 20 after the Maricopa County Superior Court granted her additional time to prepare the report. The report stems from a nearly thirty - year - old lawsuit over the county222s treatment of individuals with serious mental illness. In the proposal, Governor Brewer outlines a plan to move eligible basic behavioral health patients to the Arizona Health Care Cost Containment System , the state222s Medicaid program, and continue treating non - Medicaid - eligible patients through the Arizona Department of Health Services and its regional behavioral health authorities. In addition, the plan would create a pilot program to take a similar integrated services approach for people with serious mental illness. The proposal did not include details or budget information but sections do require approval from the Arizona Legislature ( Arizona Republic, 10/21 ; AP via KSWT, 10/20 ). Arkansas State Budget Cuts Affect Department of Health: Gov ernor Mike Beebe (D) announced that the state is cutting its budget by $100 million due to decreased state revenues and a slower than expected economic recovery. Revenue declines are a result of decreased tax collections in nearly all areas. The state Departments of Correcti on, Community Correction, Health and State Police will be most seriously affected by these cuts ( AP via KTBS, 10/21 ). California Federal Judge Blocks $82 Million in State Health Care Cuts : On October 19, a U.S. District Court judge issued a preliminary injunction blocking $82.1 million of cuts to in - home support services for elderly and disabled California residents. The cuts, which were set to take effect November 1, were one of many components of the state222s budget compromise. The judge ruled that the state222s system for determining service reductions was unfair. Governor Arnold Schwarzenegger (R) has criticized the decision as well as others like it, as a major obstacle to t he state budget process ( Los Angeles Times, 10/20 ; Sacramento Bee, 10/22 ). Study Finds Federal Medicaid Citizenship Check Costs Money, Delivers Poor Results : A study conducted by the California Endowment and the California Health C are Foundation found that the new federal requirement to conduct citizenship checks on all Medicaid applicants has added considerable costs to all 58 California counties. The study also found that the citizenship checks created new barriers to care for qualified applicants and yielded few cases of fraud ( Los Angeles Times, 10/22 ; Kaiser Health News, 10/22 ). Connecticut New Leader Appointed to Run State222s Mental Health Services : Gover nor M. Jodi Rell (R) nominated Patricia Rehmer to serve as the state222s Commissioner of the Department of Mental Health and Addiction Services . Rehmer has served as Acting Commissioner since former Commissioner Thomas SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 28, 2009 10/28/09 4 percent of doctors said they want the state to repeal the law while 80 percent say the law has had no negative impact on their practice ( NPR, 10/21 ). 223Safety Net224 Hospitals Suing the State Due to Financial Burden of Health Reform : 223Safety net224 hospitals in Massachusetts serve uninsured patients or eligible insured patients with low reimbursement rates. These hospitals are overwhelmed with patients and lack revenue to cover basic costs. Dr. Gary Gibbons, the CEO of Holyoke Medical, a safety - net hospital, believes state health care reform placed an unfair burden on safety nets, and Holyoke plans to join four other hospitals in filing lawsuits to obtain more funding from the state ( WBUR, 10/22 ). Michigan Update: Doctor Tax Sparks Heated Debate, Demonstrations : A hearing on October 20 in the Michigan State Senate discussed the proposed 3 percent tax on physicians222 gross receipts t o generate revenue for Medicaid. The proposed tax, which has passed the Michigan State House of Representatives , would benefit providers who accept Medicaid beneficiaries instead of cutting 8 percent of the Medicaid budget. It would also generate $300 million annually and qualify the state for $800 million in federal Medicaid funding ( Fox 28, 10/20 ). The Michigan State Medical Society organized a demonstration outside of the Michigan Legislat ure in opposition to the tax during the October 20th hearing, drawing hundreds of physicians in white coats. A contingency of emergency room physicians historically in favor of the tax also demonstrated outside of the Capitol. Emergency room doctors typically treat high numbers of Medicaid patients and believe the reimbursement rates would offset the cost of the tax ( Detroit Free Press, 10/21 ). Minnesot a Governor Implores States to Create Health Insurance Compact : On October 21, a letter from Governor Tim Pawlenty (R) to the nation222s governors asked for participation in the creation of the Interstate Health Insurance Compact (IHIC), an entity modeled aft er the Interstate Insurance Product Compact (IIPRC). Gov. Pawlenty envisions the IHIC to enable residents to purchase health insurance across state lines while adhering to common regulatory standards. While critics of the IIPRC feared the eroding of cons umer protection for the sale of life insurance products, Gov. Pawlenty argues that the IHIC will increase competition, choice, lower prices and set stronger standards for consumer protection ( Hometown Source, 10/21 ). Missouri State Finally Complies with State Medicaid Reporting Law : On Friday, October 23, the Missouri Department of Social Services (DSS) released a long - awaited report listing 172 businesses that employed at least 50 people who either enrolled in Medicaid themselves or had a spouse or dependent that enrolled in Medicaid. A 2006 Executive Order b y former Governor Matt Blunt (R) first mandated that the DSS quarterly report this list of employers. The report found that Wal- Mart, Casey222s General Stores Inc. and the State of Missouri were the largest employers of Medicaid recipients. A spokesperson for the DSS did not specify whether this report would be published quarterly going forward ( Associated Press, 10/26 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 28, 2009 10/28/09 5 Missouri Town Requires Prescriptions for Cold, Allergy Medications: As of October 14, Union, Missouri no longer sells over- the - counter allergy and cold medications containing the methamphetamine ingredient pseudoephedrine without a prescription, due to a high incidence of meth labs througho ut the state ( J oin Together 10/22 ). New Jersey State Report Finds Drug Abuse Up in Public Schools, Violence Down: A state report announced by New Jersey E ducation Commissioner Lucille Davy found that violence in the state222s public schools declined 5 percent since 2006 - 2007; however, substance abuse incidents increased 4 percent over the same period. Davy attributes the drop in violence to the state222s anti- violence programs and the rise in substance abuse to the increasing use of prescription drugs; however, the most frequently used drug in New Jersey schools is still marijuana, with alcohol reported as the second most frequently used substance. For substan ce abuse, there were 2,653 incidents in 2006 - 2007 compared to 2,763 in 2007- 2008 ( Philadelphia Inquirer, 10/22 ). New Mexico New Mexico Legislature Passes Budget Bill: The New Mexico Legislature passed a budget bill ( HB 17 ) that cut $200 million in state spending. Medicaid is exempt from budget cuts, as the state will fund services through the tobacco settlement fund. Most state agencies face a 7 percent cut in their budgets, including children services and state prisons ( Articlesbase, 10/27 , New Mexico Independ ent, 10/23 ). New York Juvenile Correctional Facilities Lack Ample Mental Health Services : A new report from the Center for New York City Affairs finds that state juvenile correctional facilities lack mental health services for its custodial population, as there are no psychiatrists or psychiatric nurses employed by the state facilities. Although about half of the minors in custody have a diagnosed mental illness, the state relies on visiting clinicians from hospitals to prescribe medication and monitor treatments during short weekly visits. The report also found that state employees lacking clinical experience or training resort to violent and aggressive tactics in disciplining the children. The New York Department of Justice found widespread abuse durin g recent investigations of the facilities ( WNYC, 10/21 ). Governor Calls for Emergency Legislative Session to Eliminate Deficit : Governor David Paterson (D) has called a joint session of the New York L egislature beginning on November 10 to discuss balancing the state222s $3 billion budget deficit. Gov. Paterson has proposed cutting 10 percent of Medicaid reimbursements and health care aid, totaling $471 million. State senators will hold four budget hearings between October 26 and November 2 to prepare for the joint session ( Buffalo Business First, 10/26 ). Substance Abuse Clinic Opens in Elmira : A new alcohol and substance abuse clinic, Trinity of Chemung County, formerly the Council on Alcohol and Substance Abuse of Livingston County Inc., opened in the Elmira Medical Arts Building at St. Joseph222s Hospital. Trinity of Chemung County provides prevention, intervention and t reatment services for chemical dependency and abuse ( Star Gazette, 10/26 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition October 28, 2009 10/28/09 7 Texas Harris County Creates Health Plan for Uninsured Small Business Employees : Non - profit Harris County Health Care announced a subsidized health insurance program for uninsured small business employees. The program, which has raised $4.5 of the $5.5 million needed to subsidize the coverage, will split the cost of coverage between the employer, the employee, and the su bsidy fund. Employees must work at least 30 hours a week at a participating business with two to 50 employees and pay a percentage of their premiums based on their income. $975,000 of the subsidy fund comes from the state, $1 million comes from Community Health Choice, a regional HMO, $2 million from federal grants, and $500,000 from the city of Houston ( Houston Chronicle, 10/20 ). Dallas County Has State222s Highest Incidence of Uninsured Children: A report released October 27 from the Children222s Medical Center Dallas states that more than 50 percent of the 730,000 children in Dallas County have limited or no access to health care. The report analyzed demographic data from 1998 226 2008, and projects that 31 percent of children will be uninsured in the county by 2010, the highest rate among counties with a population of 100,000 or more. Low reimbursement rates for CHIP providers have yielded a weak network of CHIP primary care pro viders within the county ( Dallas Morning News, 10/27 ). Virginia Survey Shows Prevalence of Prescription Drug Abuse : A self - reported su rvey administered to students in the Martinsville Public School system demonstrated a higher prevalence of prescription drug use than the local average. Eight percent (55 of 678) of seventh grade students reported using a prescription drug (such as Ritalin, Zana, or Adderall) without a doctor222s permission, while 14 percent (428 of 3,027) of high school students reported using a prescription drug without a doctor222s permission. The local average for high school students, from data collected by Piedmont Comm unity Services, is one in ten students abusing prescription drugs, while Martinsville222s survey showed one in eight high school students abusing prescription drugs ( Martinsville Bulletin, 10/25 ). West Virginia Clinic No Longer Able to Accept New Patients : The Eastern Panhandle Free Clinic is no longer accepting new patients, as it is one of ten free clinics in West Virginia dealing with decreased revenues and a surge in demand. The state222s free clinics serve people who do not have insurance and are not el igible for Medicare or Medicaid; in FY2009 they provided approximately $60 million worth of care to 55,000 people. Free clinics across the state are struggling to provide care in the face of decreased resources ( WVPB, 10/22 ).
