SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 1, 2010 9/1/2010 1 SAMHSA222s Weekly Financing News Pulse: State and Local Edition California C olorado Florida M aine Massachusetts M ichigan Montana New Hampshire New York O hio O regon Tennessee Virginia Washington Wisconsin To Subscribe to SAMHSA222s Weekly Financing News Pulse, please go to the following link and choose 223Health Care Financing224: https://service.govdelivery.com/se rvice/multi_subscribe.html?code=USSAMHSA&origin=http://www.samhsa.go v/enetwork/success.aspx For quest ions or comments, please contact Rasheda Parks ( Rasheda.Parks@samhsa.hhs.gov ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 1, 2010 9/1/2010 2 Around the States: State and Local Behavioral Health Financing New s California Update: Legislature Approves Bills Establishing Health Insurance Exchange : On August 24 and 25 , the California Senate approved two bills creating a health insurance exchange ( S B 900) and establishing the exchange222s duties and fees ( AB 1602). Under the legislation, a board would gov ern the state222s health exchange with the authority to contract with insurers to offer insurance through the exchange. Both bills now go before Gover nor Arnold Schwarzenegger (R) ( The Wall Street Journal, 8/26 ; Kaiser Health News, 8/26 ). Update: State Regulators Approve Anthem Blue Cross and Blue Shield of California222s Rate Increases: On August 25, the California Insurance Department approved individual insurance premium increases filed by Anthem Blue Cross and Blue Shield of California. Both firms222 increases meet the state222 s minimum 70 percent medical loss ratio (MLR) requirement. Anthem222s increases average 14 percent, while Blue Shield222s increases average 19 percent. The increases affect over one million individual policyholders and both insurers plan to implement them October 1 ( Los Angeles Times, 8/26 ; Kaiser Health News, 8/26 ). Colorado Fort Carson Begins Confidential Alcohol Treatment and Education Pilot Program : On August 30, Fort Carson , a U.S. Army installation outside of Colorado Springs, began a Confidential Alcohol Treatment and Education Pilot program. Coming amidst the release of Army research indicating a link between alcohol abuse and suicide, the program eliminates the requirement that soldiers notify their superiors before seeking counseling from the Army Substance Abuse Program. Under the pilot , t he Army will pay for three new counselors and four alcohol prevention specialists at Fort Carson . In addition, the staffing expansion will enable the program to extend its operating hours . T he program is already underway at Schofield Barracks in Hawaii, Fort Richardson in Alaska, and Fort Lewis in Washington and Army officials say they plan to expand the program throughout the Army ( The Gazette, 8/27 ). Florida BayC are Behavioral Health Opens New Inpatient Psychiatric Facility, Plans Another For 2011: BayCare Behavioral Health has opened a 72-bed inpatient psychiatric facility in Lutz. With 56 adult bed s and 16 youth beds, t he new Morton Plant North Bay Hospital Recovery Center offers psychiatric crisis stabilization services, crisis intervention, and recovery support services. Later in 2010, BayCare also plans to begin construction on St. Joseph222s Hospital Recovery C enter, a 60-bed acute care mental health facility in Hillsborough Co unty . The St Joseph222s facility will have 40 adult beds and 20 youth beds . BayCare officials project the second center will open in 2011 ( PR Newswire, 8/30 ). Maine JTG Foundation Provides $100,000 for Outpatient Mental Health Care: The JTG Foundation has provided Youth Alternatives Ingraham a two -year $100,000 grant to support outpatient mental health services geared towards the uninsured . Currently , Youth Alternatives Ingraham provides uninsured SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 1, 2010 9/1/2010 3 residents 30 days of state - funded crisis care but has minimal state funding for outpatient care ( The Kennebec Journal, 8/30 ; Kaiser Health News, 8/30 ). Massachusetts AG Settles with CVS Caremark For Prescription Drug Overcharg ing : On August 30, Attorney General Martha Coakley222s (D) office reached an agreement with CVS Caremark under which CVS will pay $2.65 million for alleged prescription drug overcharging . CVS will pay $1.3 million to approximately 200 cities, towns, and public entities for allegedly overcharging for prescription drugs obtained through the workers compensation insurance program. The remaining $1.35 million will go to the state222s general fund. Under the terms of the settlement, CVS admits no wrongdoing ( The Boston Globe, 8/30 ; Kaiser Health News, 8/31 ). Michigan Update: High -Risk Pool Begins Enrollment : On August 31, Michigan222s high -risk insurance pool began enrolling beneficiaries for coverage begin ning October 1 . Physicians Health Plan of Mid- Michigan is administer ing the plan, which charges monthly premiums ranging from $181 to $686. In addition, Priority Health of Grand Rapids was originally selected to operate the pool in some counties but withdrew its bid after the Michiga n Legislature recessed without transferring $141 million in federal program funding into the state budget ( Detroit Free Press, 8/31 ; Kaiser Health News, 8/31 ). NIHCR Study E xamines Health Care Organization, Financing, and Delivery in Detroit: On August 26, the National Institute for Healt h Care Reform (NIHCR) released a report examining health care organization, financing, and service delivery in the Detroit metropolitan area. The report challenges the assertion that Detroit can transform its economy to focus on the health care sector instead of the automotive sector . The authors suggest that the $1.3 billion in capital improvement projects planned by Detroi t-area hospitals may lead to higher health care costs if hospitals fa il to attract new patients. The NIHCR is a non-profit formed in 2007 by the United Auto Workers (UAW) , General Motors (GM) , Chrysler , and Ford to study health care costs and trends ( NIH CR, 8/26 ; The Detroit News, 8/26 ; Kais er Health News, 8/26 ). Montana Update: Governor Proposes Plan Allowing All State Residents to Obtain Prescription Drugs Through Medicaid: On August 24, Governor Brian Schweitzer (D) proposed a plan to allow all state resident s to enroll in a new Medicaid prescription drug discount program. The plan would allow residents to purchase prescription drugs at the rates negotiated by Medicaid. The governor says he plans to file a Medicaid state plan amendment with the Centers for Medicare & Medicaid Services (CMS) in the next few weeks. The federal government has rejected Governor Schweitzer222s previous plans to import Canadian drugs and purchase discounted drugs from the U.S. Departmen t of Veterans Affairs (VA) ( AP, 8/27 ; Kaiser Health News, 8 /27 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 1, 2010 9/1/2010 4 New Hampshire Law Allows Employees to Use Pre -Tax Income to Purchase Cafeteria Health Insurance : On August 20, a law ( SB 390) took effect , allowing businesses to offer employees health-only cafeteria plans if they do not already offer full insurance or comprehensive cafeteria coverage . Under the law, workers may purchase their own health coverage through a pre-tax payroll deduction; however, employers are not required to contribute to their premiums. The law also requires that insurers off er the highest group premium rates to employees purchas ing such insurance because those rates are often lower than those in the individual market. The law applies to employees working a minimum of 15 hours a week at small businesses with two or more employees ( New Hampshire Business Review, 8/25 ; Kaiser Health News, 8/25 ). New York High -Risk Insurance Pool Begins Enrollment : New York222s high -risk insurance pool, the New York Bridge Plan, has begun enrolling beneficiaries and will begin offering coverage October 1 . Group Health Insurance Inc., a no n-profit subsidiary of Emblem Health, is administering the program, which will operate using $297 million in federal funds . M onthly premiums under the pool are $362 for upstate residents and $421 for residents of the 14 downstate counties ( Rochester Business Journal, 8/30 ; Kaiser Health News, 8/31 ). MHF Awards $10,000 Grants for Peer -to-Peer Support : The Mental Health Foundation (MHF) has awarded $10,000 grants to the Albany -based ClearView Center and the Nassau County Mental Health Association for peer -to -peer support programming under MHF222s 223It222s Okay to Talk About It224 grant program. The grants will fund peer - to -peer mental health support initiatives on college campuses ( readMedia, 8/30 ). Ohio Fairfield County Jai l Faces $44,000 Budget Shortfall for Emergency Mental Health Services : On August 24, Fairfield County Alcohol, Drug Addiction and Mental Health Board (ADAMH) officials announced a n anticipated $44,000 shortfall for the emergency mental health services prov ided by New Horizons Youth and Family Center at the Fairfield County Jail. ADAMH pays approximately $36,000 to New Horizons for the services. ADAMH officials say the shortfall is the result of state funding reductions and increased payments for mandatory programming, adding that they do not yet know how long the remaining funds will last or how they will close the funding gap ( Lancaster Eagle -Gazette, 8/25 ). Oregon Update: Governor Orders New Across - The -Board Budget Cuts, Health Care Affected: Governor Ted Kulongoski (D) is ordering all state agencies , including the Oregon Department of Human Services (DHS), to submit plans for across-the -board budget cuts to close a $377.5 million budget shortfall for the current biennium. Th is newest shortfall is the result of lower-than -anticipated tax revenue and comes after previous cuts closed a $577 million deficit in July . The new cuts constitute an 8 percent spending reduction for the rest of the budgetary cycle that ends in June 2011 and come in addition July222s cuts . The Oregon Legislative Emergency Board , which can change individual agency budgets between SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 1, 2010 9/1/2010 5 legislative sessions, will make smaller adjustments to individual agencies222 budgets. After the initial round of cuts, the board restored $17.1 million for DHS services for seniors and the disabled, including mental health services ( Statesman Journal, 8/29 ). Tennessee SAMHSA Awards DMHDD $2.1 Million for Flood -Related Mental Health Services : On September 1, the Substance Abuse and Mental Health Services Administration (SAMHSA) awarded the Tennessee Department of Mental Health and Developmental Disabilities (DMHDD) a $2.1 million grant to continue offering mental health outreach and services for victims of the natural disasters that occurred in Ap ril and May. Until June 2011, t he funds will support crisis counseling, public education, community networking and support, and needs assessment and referral. The SAMHSA funding extends services originally funded by a $380,000 Federal Emergency Management Agency (FEMA) grant ( The Jackson Sun, 8/28 ). Virginia DBHDS Open ing New Adult Mental Health Treatment Center at Eastern State Hospital: The Virginia Department of Behavioral Health and Developmental Services (DBHDS) is opening a $59.7 million 150 - bed inpatient adult mental health treatment center at Eastern State Hospital. Designed to replace existing facilities, t he center will serve individuals with serious mental illnesses (SMI), including those receiving court -ordered treatment . The new center is the second phase of a two -stage mental health expansion . The first phase ended in 2008 when DBHDS opened a 150 -bed mental health facility for the elderly. DBHDS officials estimate that they will begin moving patients into the new adult center within the next few weeks ( Richmond Times - Dispatch, 8/30 ). Washington SAMHSA Awards CVAB $210,000 Grant : SAMHSA aw arded Consumer Voices Are Born (CVAB) a three - year $210,000 grant for the development of at least three consumer-operated self -help centers across Washington. CVAB is a mental health organization that operates peer -to -peer programming ( The Columbian, 8/28 ). Wisconsin Milwaukee County Board of Supervisors to Vote on New Mental Health Complex : On August 27, Milwaukee County Board of Supervisors officials announced that they will vote in September on whether to build a new complex to replace the Milwaukee County Mental Health Complex (MCMHC). The board will consider a measure to fund a $100,000 cost analysis of potential buildings and locations. If approved, c onstruction on a new facility could begin as early as 2012. In the 2010 budget, the board allocated $10.8 million for the new facility222s initial planning and construction and $1.8 millio n for updates to address code violations at the current MCHMC . County officials did not offer a cost estimate for the new behavioral health facility but a 2008 estimate projected that it would cost $400 million ( The Business Journal of Milwaukee, 8/27 ; Milwaukee Journal Sentinel, 8/27 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 1, 2010 9/1/2010 6 La Crosse Community Foundation Awards YMCA $29,448, Be havioral Health Care Affected : On August 27, the La Crosse Community Foundation awarded the La Crosse Area Family YMCA $29,448 to expand and train its staff. The award includes funding to bring behavioral health specialists from the Gundersen Lutheran Hea lth System to work at the YMCA and train YMCA staff ( La Crosse Tribune, 8/28 ).