WeeklyFinancingNewsPulseStateandLocalEditionfinal20090929.pdf (PDF | 199.97 kb)
SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 29, 2009 9/29/09 1 SAMHSA222s Weekly Financing News Pulse: State and Local Edition Alabama California Florida Idaho Indiana Iowa Massachusetts Michigan Mississippi Montana Nebraska New Jersey New York North Carolina Ohio Pennsylvania South Carolina Texas Virginia West Virginia Wisconsin For quest ions or comments, please contact Kevin Hennessey ( kevin.hennessy@samhsa.hhs.gov ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 29, 2009 9/29/09 3 Florida Humana and HCA Sign Access Agreement : HCA Inc. and Humana Inc. have signed a two - year agreement allowing Humana222s 650,000 commercial, Medicare, and Medicaid enrollees access to HCA222s h ospitals, ambulatory service centers, diagnostic facilities, and physicians. The deal provides access for Humana beneficiaries in South Florida, Tampa Bay, Orlando and Jacksonville, as well as limited access for those in North Central Florida and the Panh andle ( Tampa Bay Business Journal, 9/22 ). Idaho Governor Cuts State Budget , Health Care Affected : In an executive order, Governor C. L. 223Butch224 Otter (R) announced a 4 percent average cut to the state budget designed to close about two - thirds of the state222s $151 million current - year shortfall. Governor Otter plans to work with state agencies to trim the remaining $50 million. The September 25 announcement cuts 3.3 per cent from the Department of Health and Welfare , including the state222s Medicaid program ( Spokesman - Review, 9/25 ; Spokesman - Review, 9/25 ). Indiana New Clinic to Offer Mental Health Services : On September 23, the Renaissance School in Warren Township opened a new health center, the Jane Pauley Community Health Center, to offer primary care, dental care, and mental health services for students and the broader Warren community ( WTHR, 9/23 ). Iowa Attorney General Announces L ow - Income Prescription Drug Program : On September 22, Iowa Attorney General Tom Miller announced a new $420,000 program to provide prescription drugs to state residents earning up to 200 percent of the federal poverty level (FPL). Under the program, which is funded with Iowa222s share of a federal settlement with Caremark Rx and EIS , qualifying residents would get prescriptions for as low as $3 a month for three months. The non - profit Iowa Prescription Drug Corporation will administer the program and the state expects to have participating pharmacies in every county ( AP via Chicago Tribune, 9/22 ; Kaiser Health News, 9/23 ). State Republicans Announce Health Reform Plan: Iowa Republicans offered a health reform plan on September 23 that would focus on transparency, tax credits and deductions, and tort reform. Unde r the plan, Republicans would expand transparency regarding the costs and benefits of health coverage, incentivize coverage for residents under 30, restrict medical malpractice lawsuits, offer small business and individuals the same health care deductions given to large businesses, create premium credits for individuals practicing healthy lifestyles, and prevent insurance companies from denying coverage for pre - existing conditions when enrollees switch plans within the same provider ( AP via Chicago Tribune, 9/23 ). Massachusetts Poll Finds State Health Reform Still Popular : A Boston Globe / Harvard School of Public Health poll found that 59 percent of residents favor the state222s 2006 health reform package, down from 69 percent a year ago. In a related question, the poll found that 79 percent of residents want to continue the law while 11 percent favor repealing it. Howev er, the poll found residents were more evenly split on the SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 29, 2009 9/29/09 4 state222s ability to afford the law, with 43 percent believing the state cannot afford it and 40 percent believing it can ( Boston Globe, 9/28 ; Kaiser Health News, 9/28 ). Foundation Awards Grants to Reduce Health Disparities : On September 23, the Blue Cross Blue Shield of Massachusetts Foundation awarded $1.25 million through 11 grants to reduce health care disparities based on race, ethnicity, immigration status, age, ment al illness, and sexual orientation. The grants are the second phase of the foundation222s Closing the Gap on Health Care Disparities program. Among other grantees, the Central Massachuset ts Area Health Education Center, Lowell Community Health Center, and ServiceNet Inc. will implement programs focused on M/SU conditions ( Business Wire, 9/23 ). Michigan Flinn Foundation Awards M/SU Grants in Southern Michigan: The Ethel and James Flinn Foundation has awarded $2.6 million in grants to improve mental health treatment in Southeastern Michigan. The grants focus on improving mental health treatment and integrating mental health and primary care ( Crain222s Detroit Business, 9/25 ). VA to Open New Health Clinics, Including M/SU Clinic : The U.S. Department of Veterans Affairs (VA) announced plans to open a new M/SU clinic in Saginaw and four additional community - based outpatient primary care clinics throughout the region. The new primary care clinics are slated to open by the end of 2010 in Bad Axe, Cadillac, Cheboygan and Grayling ( MLive, 9/27 ). Mississippi DMH Requests 25 Percent Funding Increase : State mental health director Ed LeGrand has requested a 25 percent funding increase for the Mississippi Department of Mental Health (DMH) in the budget beginning July 1. After presenting the budget at a Joint Legislative Budget Committee hearing, LeGrand acknowledged that he did not expect to receive the full $50 million increase. LeGrand said that DMH could continue to function with a $10 million increase ( AP via Forbes, 9/23 ). Montana State Expands Children222s Coverage and Outreach : On October 1, a measure approved by the Montana Legislature last November will combine the state222s Medicaid children222s program and CHIP int o the Healthy Montana Kids Program. The new program will receive a $112 million increase in funding, with approximately one - fifth coming from state funds. The Montana Department of Public Health and Human Services estimates that the new program will cove r an additional 30,000 children and plans to implement school - and clinic - based outreach programs. In addition, the state has reduced the application form for the program from 12 to six pages and begun accepting online applications ( Great Falls Tribune, 9/24 ; Kaiser Health News, 9/24 ). AG An nounces Prescription Drug Task Force: Montana Attorney General Steve Bullock announced the creation of a state advisory council on prescription drug abuse. The 18 - member council, announced September 22, includes health care professionals, law enforcement personnel, civic leaders, and teens. Montana State Senator Trudi Schmidt (D), a panel participant, said the panel will help Montana follow SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 29, 2009 9/29/09 5 the lead of its neighbors 227 Idaho, North Dakota, and Wyoming227 all of which have prescription drug monitoring programs ( CBS, 9/22 ; AP via KX Net, 9/22 ). State Alters Employee Drug Coverage to Increase Effectiveness and Cut Cost: Beginning January 1, the Montana Health Care and Benefits Division will implement a new pricing system for prescription drugs under state employee health plans. The move, which is expected to save the state $6.3 million annually, will categorize drugs into six classes (A t hrough F) of clinical- and cost - effectiveness and assess copayments based on class. Drugs deemed to be the most cost - effective and clinically effective will be categorized as Class A and will be free for state employees. Classes B and C drugs will be available for small copayments, Class D drugs will require a 50 percent copayment, and state employees must pay the full drug cost for Class F drugs 227 those deemed to have 223the lowest level of value224 ( Billings Gazette, 9/26 ). Nebraska Judge Says CMS May Terminate BSDC Medicaid Certification: On September 25, the Nebraska Department of Health and Human Services (DHHS) received notification that an administrative law judge ruled that CMS may decertify Beatrice State Developmental Center (BSDC). CMS has yet to act on the decision; however, if CMS decertifies the center, Nebraska222s DHHS will lose $25 million in op erating expenses. The Nebraska Legislature anticipated the decision and included an additional $50 million in the state222s two - year budget for center operating expenses. State officials plan to meet with CMS officials in the coming weeks to discuss recertification ( Beatrice Daily Sun, 9/28 ). New Jersey Heinz Family Foundation Funds Health Care Pilot in Newark : The Heinz Family Foundation, the Pharmac eutical Research and Manufacturers of America (PhRMA), and the American Heart Association donated a total of $200,000 to create a pilot program providing primary care to 400 uninsured and underinsured Newark residents. In addition, seven pharmaceutical companies have donated $1.6 million of prescription drugs to the yearlong pilot that is expected to save area hospitals over $2 million. The Heinz Foundation is sponsoring similar pilots in California and Mississippi and has plans for programs in Maryland, M ichigan, New York, and Ohio ( AP via Philadelphia Inquirer, 9/22 ; Kaiser Health News, 9/23 ). New York Hospital to Offer Physician Incentives for EHR Adoption: On September 28, North Shore- Long Island Jewish Health System announced plans to offer its 7,000 affiliated doctors su bsidies of up to $40,000 over five years to adopt electronic health records (EHRs). The subsidies would be in addition to subsidies available through the American Recovery and Reinvestment Act (ARRA), which can total $44,000 over five years. The hospital222s program will offer up to 85 percent of the total cost of EHR implementation for physicians agreeing to share anonymous patient data and up to 50 percent for all other doctors ( New York Times, 9/27 ; Kaiser Health News, 9/28 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 29, 2009 9/29/09 6 North Carolina Poll Finds Carolinians Satisfied with Health Insurance, Want Minor Reform : A Charlotte Observer/WCNC News/WFAE Carolinas poll, conducted September 14 - 20, found that 25 percent of Carolinians want the 223broad overhaul224 proposed by Democrats while slightly more than 50 percent favor more minor changes and about 20 percent want no change at all. The poll also found that 75 percent of North and South Carolina residents report being satisfied with their current health insurance ( Charlotte Observer, 9/26 ). S tate Relinquishes Financial Control of M/SU Center : After assuming financial control of Southeastern Center for Mental Health, Developmental Disabilities and Substance Abuse Services in July 2008, the North Carolina Division of Mental Health, Developmental Disabilities and Substance Abuse Services sent a letter to the center September 21 saying that as a result of improved financial oversight and administrative procedures, financial control would return to center authorities ( Star News Online, 9/22 ). Two Health Care Facilities Receive Grants : The Kinston Community Health Center received a $100,000 state Golden LEAF grant to supplement a $500,000 Health Resources and Services Administration (HRSA) grant and fund a two - year renovation plan. In addition, the North Carolina Economic Development C enter awarded Nova Behavioral Health Care a $480,000 grant to construct an 18 - bed residential psychiatric facility ( ENC Today, 9/27 ). Ohio AG Awards Grants to Police Dep artments to Support Drug Abuse Prevention in Schools : Ohio Attorney General Richard Cordray has awarded $2.8 million in Drug Use Prevention grants to 175 police departments to support drug abuse prevention efforts in schools. A $75 license reinstatement fe e paid by drivers convicted of operating a vehicle while intoxicated supports the grant fund ( Tribune Chronicle, 9/24 ). Pennsylvania State Selects Aetna to Provide MA PPO Plans to Retired State Employees : On September 22, the Pennsylvania Employees Benefit Trust Fund announced Aetna Inc. as the sole provider of Medicare Advantage (MA) preferred provider organization (PPO) plans. In addition, Aetna is one of three providers offering MA HMO plans to state retirees. The state222s new contract with Aetna takes effect January 1 ( Business Wire, 9/22 ). South Carolina Senate Committee Seeks Public Comment on Health Agency Realignment : The Senate Medical Affairs Committee is seeking public comment on three bills that would alter the structure of the state222s health care departments. Under the proposed bills, the Department of Health and Environmental Contro l and the Department of Disabilities and Special Needs would become cabinet - level agencies under the governor and the Department of Alcohol and Other Substance Abuse Services and the Department of Mental Health would merge to become a new Department of Behavioral Health Services ( The State, 9/24 ). SAMHSA222s Weekly Financing News Pulse: State and Local Edition September 29, 2009 9/29/09 7 Texas State Commission Estimates Cost of National Health Reform : An analysis by the Texas Health and Human Services Commission estimated that n ational health care reform would add 2.5 million Texans to public insurance programs, costing Texas an estimated $20 billion over 10 years. U.S. Senator John Cornyn (R- TX) requested the analysis and made it public at a U.S. Senate Finance Committee meetin g while opposing Senate Finance Committee Chair Max Baucus222 (D - MT) proposed health reform legislation ( AP via Houston Chronicle, 9/22 ). Virginia Poll Finds Small Business Support Healt h Reform : A poll of 200 businesses in Virginia with 100 or fewer employees found that, though only 46 percent pay for health insurance for their employees, 66 percent believe that health reform is crucial for the economy and 59 percent believe that employers have an obligation to provide health insurance. In addition, the poll found that 76 percent of respondents who provide health insurance reported struggling to do so. Finally, the poll found that 79 percent favor the choice of public and private options, 13 percent want only private options, and 5 percent prefer only a public plan ( Richmond Times Dispatch, 9/24 ). West Virginia Updat e: Judge Upholds Behavioral Health Orders, Case Likely to Proceed to State Supreme Court : After the West Virginia Department of Health and Human Resources (DHHR) and Judge Duke Bloom of the Kanawha County Circuit Court reached a state mental health treatment deal stemming from a 1981 lawsuit, the state filed petitions to stay three court- ordered requirements (Financing News Pulse 8/10, 7/16, 5/4 editions). However, Judge Bloom has denied the requests, ruling that they would violate the state222s obligation t o provide adequate behavioral health care. The state contends that Bloom222s decision usurps control from the state legislature and governor and plans to take the case to the West Virginia Supreme Court . The three orders would alter the state222s Medicaid pr ogram, which the state contends is the purview of the legislature, the governor, and CMS 227 not the Circuit Court ( AP via Charlestown Gazette, 9/24 ). Wisconsin Dane County Executive to Include Mental Hea lth Crisis Center in 2010 Budget : Dane County Executive Kathleen Faulk announced that her 2010 budget will include funding for a 24 - hour mental health crisis stabilization center. The 12 - bed center would treat people at risk for psychiatric hospitalizatio n. Faulk222s proposal would fund the center with $95,000 in county tax funds, $500,000 in federal medical assistance, and an additional $200,000 in federal grant funding ( Wisconsin State Journal, 9/25 ; Office of the County Executive via WMTV, 9/25 ). Milwaukee County Board Approves $500,000 for Mental Health Housing : The Milwaukee County Board approved a $500,000 subsidy for a 30-unit housing development for low - income residents with mental illness. The entire project, under development by Cardinal Capital Management, will cost $5.6 million ( On Milwaukee, 9/24 ).
