SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 8, 2010 9/8/2010 1 SAMHSA222s Weekly Financing News Pulse: State and Local Edition A rkansas California Florida H awaii Illinois I owa Minnesota N ebraska New York O hio Texas Utah Virginia Washington 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 contac t Rasheda Parks ( Rasheda.Parks@samhsa.hhs.gov ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 8, 2010 9/8/2010 2 Around the States: State and Local Behavioral Health Financing News Arkansas NIMH Awards UAMS and CHC $2.78 Million for Research to Improve Community Mental Health Services : The National Institute of Mental Health (NIMH) awarded researchers at the Universi ty of Arkansas for Medical Sciences (UAMS) and the Community Health Centers of Arkansas Inc. (CHC) a five - year $2.78 million grant for research and programming to improve community mental health. CHC provides health services to over 141,000 Arkansas residents in medically underserved areas. The grant will fund a partnership between UAMS and CHC to promote evidence - based mental health practices t hat screen and diagnose individuals with bipolar disorder and alcohol abuse disorders and connect them with psyc hiatric care ( WREG, 9/3 ). California OECDC Building Transitional Housing and MH/SUD Treatment Facility for Veterans : The Oroville Economic and Community Development Corp. (OECDC) is building Victory Village, a $6 million transitional living and medical facility offering substance abuse treatment and recovery services to Northern California veterans. The facility will offer housing, substance abuse treatment, mental health services, medical services, job training, and other recovery services. The facility will serve 48 veterans and offer 30 permanent supportive housing units. OECDC is modeling the facility after Veterans Village in San Diego. Construction began in early August and OECDC officials project the first phase, which includes 12 beds, will take two months to complete ( Chico Enterprise Record, 9/5 ). Legislature Completes Session, Conducts F inal Votes on Health Bills : On August 31, the California Legislature held the last day of its legislative session and considered several health care bills. A bill ( AB 2578) giving state regulators the authority to reject any increase in health insurance premiums, copayments, coinsurance, deductibles, and other charges failed before the California Senate . The Senate approved a bill ( SB 890 ) that bars coverage cancellations and requires insurers to receive state approval to retroactively deny coverage in the case of fraud. In addition, the Senate approve d a bill ( SB 1163) that requires insurers to give 60 days222 notice of premium increases and make information regarding rate increases publicly available. Currently insurers only need to give 30 days222 notice and there is no requirement to publicize premium increase information. Finally, the California Assembly approved legislation ( SB 890 ) which requires insurers to standardize plan information to allow for easier consumer comparisons. The approved bills go before Governor Arnold Schwarzenegger (R), who has the month of September to sign them ( California P rogress Report, 8/31 ). Update: State Offering Rural Health Facilities Loans to Offset Medi - Cal Payment Delays : The California Health Facility Financing Authority (HFFA) is offering $9 million in interest- free loans to rural hospitals and community clinics facing cash flow issues due to the lack of a state budget. The state is currently reimbursing community clinics with IOUs for services financed by Medi- Cal, the state222s Medicaid program, and state officials say they plan to reimburse the clinics once the California Legislature approves a budget. The HFFA loans are for up to $750,000 and recipients must repay them within 45 days of the passage of the state budget ( AP via Business Week , 9/3 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 8, 2010 9/8/2010 3 Amador County Board of Supervisors Approves Budget Including Behavioral Health Revenue Increase, Increased HHS Funding : On August 31, the Amador County Board of Supervisors approved a FY2011 budget of slightly more than $70 million. The budget includes a behavioral health services revenue increase of $107,914 , resulting from a staffing reorganization. The supervisors also increased the Amador County Department of Health and Human Services222 budget by $61,000 for a staffing increase ( Ledger - Dispatch, 9/3 ). Florida Update: State Supreme Court Upholds Reject ion of Health Care Freedom Amendment : On August 31, the Florida Supreme Court upheld Circuit Court Judge James Shelfer222s ruling that ordered the Health Care Freedom Amendment removed from the November ballot , finding that it contains 223misleading and ambiguous language.224 Under state law, summaries of ballot measures must be both clear and accurate. If approved, the amendment would have modified the state constitution to prohibit the state from participating in any health insurance exchange that requires individuals to purchase insurance. Lawmakers supportive of the amendment say they will propose a revised amendment next year for the 2012 ballot ( Health News Florida, 9/1 ; Kaiser Health News, 9/1 ). Hawaii State Announces Intention to Reduce Medicaid Benefits : The Hawaii Department of Human Services (DHS) gave public notice that it intends to reduce Medicaid benefits for 16,000 individuals , the first step required to obtain approval for a benefit reduction from the Centers for Medicare & Medicaid Services (CMS). The change would reduc e benefits for approximately 16,000 Medicaid beneficiaries currently receiving more comprehensive benefits down to the level of the state222s Basic Health Hawaii program. Benefits would change for non - pregnant, non- disabled adults younger than 65. State officials say the change would affect 10 percent of Medicaid beneficiaries, and that the reduction is necessary to improve the solvency of the DHS budget ( Pacific Business News, 9/3 ). Illinois DOJ Awards St. Clair County $100,000 Grant to Expand Drug Court : The U.S. Department of Justice (DOJ) awarded a $100,000 grant to St. Clair County, in conjunction with the 20th Judicial Circuit Court , to expand St. Clair County222 s drug court. The grant will fund a staffing expansion designed to equip the court to better accommodate offenders with co - occurring disorders ( Belleville News De mocrat, 9/4 ). Iowa HHS Approves Extension of State222s Health Program for Poor : The U.S. Department of Health and Human Services (HHS) issued Iowa a waiver for a three - year extension of IowaCare, a health coverage program offering limited Medicaid - financed health services to individuals 19 to 64 years old that would not normally be Medicaid eligible. IowaCare offers limited medical, mental health, dental, and prescription drug coverage. The program covers approximately 40,000 individuals earning up to 200 percent of the federal poverty level (FPL). Iowa would have faced a $100 million shortfall if HHS did not grant the waiver ( Des Moines Register, 9/3 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 8, 2010 9/8/2010 4 Iowa Employee Benefits Study Finds Increasing Health Costs Passed on to Employees : The 2010 Iowa Employee Benefits Study found that health care premiums rose an average of 13 percent from 2009 to 2010 and 132 percent from 1999 to 2010. Th e study found that current average monthly premiums in Iowa average $399 for single coverage and $1,069 for family coverage. Additionally, the study determined that from 1999 to 2010 employee premium contributions rose 84 percent for single coverage and 96 percent for family coverage. Employers also reported that they are passing rising health costs on to their employees in ways other than increased premiums, with 29 percent raising deductibles, 15 percent raising copayments for office visits, and 19 perc ent increasing employees222 out - of - pocket costs. The Iowa Employee Benefits Study began in 1999 and is conducted annually by David P. Lind & Associates ( KCCI, 9/7 ). Minnesota Governor Issues Execu tive Order Requiring Gubernatorial Approval for Acceptance of Certain Health Reform Funds : On August 31, Governor Tim Pawlenty (R) issued an executive order that requires gubernatorial approval for the state to accept federal discretionary funds available under the national health care reform law for grants and demonstration projects. The order is in effect until January, when Governor Pawlenty222s term ends . Minnesota is the first state to formally restrict its acceptance of funds available through health reform ( The Wall Street Journal, 9/1 ; Kaiser Health News, 9/1 ). Nebraska Heartland United Way Awards Hope Harbor $8,000 for Mental Health Services : The Heartland United Way awarded Hope Harbor, Inc. an $8,000 grant to provide mental health services to its residents. Hope Harbor is a Grand Island homeless shelter for women, children, and families. The grant will enable Hope Harbor to provide mental health services to residents that are uninsured or unable to pay for treatment ( The Grand Island Independent, 9/4 ). New York State Awards $50 Million to Hospitals for Construction and Renovation, Woodhull Medical and Mental Health Center Receives $2 Million : The New York Department of Health (DOH) and the Dormitory Authority of the State of New York (DASNY) awarded 17 hospitals approximately $50 million in two - year grants to improve health care efficiency and affordability. The state is offering the grants to compensate f or hospital operating losses incurred because of changes made to the state222s Medicaid payment system. Woodhull Medical and Mental Health Center is among the recipients, receiving nearly $2 million. The grants will fund construction and renovation project s aimed at improving health care efficiency and affordability, including the elimination of excess beds and inpatient services in favor of outpatient services . The hospitals may begin using the grant money in October. DOH and DASNY jointly administer the funds under the Healthcare Efficiency and Affordability Law for New Yorkers (HEAL NY ) ( New York State Department of Health, 9/2 ; Healthcare Association of New York State, 9/3 ). Ohio Governor Allocates Funds Freed Up by ARRA FMAP Extension for Community Mental Health Programs, Hospitals, and Drug Program for Individuals with HIV/AIDS : On September 2, G overnor Ted SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 8, 2010 9/8/2010 5 Strickland222s (D) Administration reallocated $200 million in state funds to community mental health programming, hospitals, and a prescription drug program offering low - income residents HIV/AIDS drugs. The Ohio Legislature originally allocated the funds for Medicaid in anticipation of the failure of Congress to approve an extension of American Recovery and Reinvestment Act (ARRA) Federal Medical Assistance Percentage funding. The funds became available for reallocation when President Barack Oba ma signed the $16.1 billion ARRA FMAP funding extension ( H.R. 1586 ) on August 10. The reallocated fund s include $32.6 million for community mental health programs, $150 million to reimburse hospitals for a tax imposed on them last year, and $12.8 million for a prescription drug program for low - income residents with HIV/AIDS. An additional $243 million is still available for reallocation, but Governor Strickland222s Administration is still currently accepting input from state officials and stakeholders on ho w best to utilize it ( The Columbus Dispatch, 9/2 ; Kaiser Health News, 9/3 ). Texas Betty Hardwick Center Begins Offering Substance Abuse Treatment to Teens in Abilene: The Betty Hardwick Center in Abilene has begun offering substance abuse treatment to teens and their families. The services includ e outpatient counseling, family counseling, adolescent support, family support, and psychiatric consultation. The center employs licensed treatment professionals and relies on evidence - based treatment models ( Abilene Reporter News, 9/1 ). Williamson County Adopts $124.4 Million Budget, Health Care for Uninsured Residents Sees Largest Increase : On August 31, the Williamson County Commissioners222 Court adopted a $124.4 million FY2011 budget, a $3.1 million increase over the approved FY2010 budget, but $500,000 less than the FY2010 budget as current ly amended. Health care for the uninsured constituted the largest programmatic increase over last year, with an allocation of $7 million in FY2011 up from $4 million in FY2010 ( Community Impact Newspaper, 8/31 ). Utah State Expands Small Business Health Exchange Statewide : On September 1, the Utah Health Exchange began accepting applications statewide from small business es with up to 50 employees. The exchange h as been operating as a pilot program over the past year. Employees of participating firms may select coverage from over 60 plans offered by Humana , Regence, Select Health, and United HealthCare. Employees that wish to purchase a more comprehensive plan than what their employer covers can pay the difference. Under state law, all plans offered through the exchange meet federal standards for employer - sponsored coverage. Firms have until September 15 to apply to participate for plan years beginning January 1. Businesses wishing to apply for plan years beginning after that must apply at least 90 days before the beginning of the plan year ( Deseret News, 9/1 ; Kaiser Health News, 9/2 ). Virginia GOSAP Awards $515,405 in Substance Abuse and Gang Involvement Prevention Grants : The Governor222s Office for Substance Abuse Prevention (GOSAP) awarded grants total ing $515,405 to 17 prevention programs statewide. The grants fund programs that use evidence - based approaches to SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 8, 2010 9/8/2010 6 address and prevent youth substance abuse and gang involvement . The awards include four new programs that intervene with gang-involved youth, four new programs that reduce youth gang involvement, three new community prevention needs assessments, and six continuing programs ( GOSAP ). NAMI Winchester Begins Free Mental Health Support Classes : The Winchester chapter of the National Alliance on Mental Illness (NAMI) is offering free peer and family support programming for individuals with mental illnesses. NAMI Winchester is offering a 10 - week peer - to - peer class for individuals with mental illnesses, taught by trained mentors recovering from mental illness. In addition, NAMI is offering a 12 - week support program for families of individuals with mental illnesses, taught by individuals whose close family members have mental illnesses. The classes are free, and part of the ir funding comes from the Virginia Department of Behavioral Health and Developmental Services (DBHDS) ( The Northern Virginia Daily, 9/7 ). Washington State Health Coverage Program for Small Businesses Begins Enrollment : On September 1, a state program offering health insurance to small businesses with 50 or fewer employees began enrollment. Employers cover 40 percent of employees222 premium costs under the Health Insurance Partnership. Coverage through the program will begin in 2011, and premium subsidies for employees meeting certain income criteria are available ( AP via The Seattle Time s, 9/1 ; Kaiser Health News, 9/2 ).