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CCH® BENEFITS — 03/10/10

State Health Care Reform Update

from Spencer’s Benefits Reports: For the last few years, states have been leading the way toward more comprehensive health care coverage to ensure that more people have or can obtain health insurance. Because of the potential impact of this ongoing activity on employer-provided health insurance benefits, Spencer’s Benefits Reports provides regular updates about state health care reform.

Colorado. Gov. Bill Ritter has announced new health care legislation, including ten bills and an executive order, because he claimed that the state “can’t wait for Washington to act.” The legislation will focus on three main areas of health care: (1) increasing cost-savings, efficiencies, and accountability; (2) improving public and private systems; and (3) protecting and improving care for women. Also, the executive order increases efficiency in Medicaid and the state’s Children’s Health Insurance Plan (CHIP) through a requirement that state agencies electronically share citizenship information. For more information, visit http://www.colorado.gov/governor.

Florida. The recession continues to increase the number of people without jobs, and many more individuals are seeking health care through Florida’s Medicaid program. The increased enrollment has driven up costs and is playing a major role in a potential $3 billion state budge shortfall next year. This budget deficit could lead to cuts in Medicaid, according to state officials. Projections for the 2010-11 year show that the program could serve nearly 3 million people, at an overall cost of about $19.1 billion. For more information, visit http://www.dcf.state.fl.us/ess/medicaid.shtml.

Idaho. The state house has approved the Idaho Health Freedom Act (HB 391), which would prohibit the federal government from requiring people to carry health insurance. The AARP has opposed this bill, stating that it would cost Idaho nearly $1.6 billion in federal health care funding—$1.26 billion in the federal match for Medicaid and $36 million federal match for CHIP. For more information, visit http://legislature.idaho.gov/legislation/2010/H0391.pdf.

Kansas. Approximately 5,700 individuals with physical or developmental disabilities are on the waiting list to receive Medicaid services, which are designed to keep them out of nursing homes or state hospitals, but demand for services exceeds what the state can afford. According to forecasts, Kansas’ budget deficit will be between $300 million to $400 million if the state does not raise taxes or cut spending for fiscal year 2011, which begins July 1. For more information, visit http://www.khpa.ks.gov/.

Maine. The Department of Labor has awarded an $880,000 grant to provide approximately 800 jobless workers in Maine with partial premium payments for health insurance coverage. The grant will be used to make “gap filler” payments for unemployed individuals who are receiving Trade Adjustment Assistance benefits and are eligible for the Health Coverage Tax Credit (HCTC). The grant will cover health care coverage payments for the gap period, or the time it takes to complete Internal Revenue Service enrollment, processing, and first payments under the HCTC program. The state of Maine will provide up to three months of gap filler payments for the participants. For more information, visit http://www.doleta.gov/NEG/.

Maryland. Maryland should enhance its existing health care delivery systems instead of implementing a health insurance exchange, according to a recent report from the National Association of Insurance and Financial Advisors of Maryland (NAIFA) and the Maryland Association of Health Underwriters (MAHU). The report tried to imagine what would happen if state legislators implemented the Massachusetts Connector model in Maryland. The main finding of the report was that while a health insurance exchange in Maryland could be successful, instead of creating something new, Maryland legislators should look at expanding the resources already in place in the state. For more information, visit http://www.marylandahu.com/broker_images/
marylandahuorg/documents//mahu_exchange_study.pdf
.

Minnesota. The state’s General Assistance Medical Care (GAMC) program is slated to expire on March 31, with most recipients transferring to another state health plan, MinnesotaCare. MinnesotaCare is more expensive, and charges a small premium to enrollees. This affects approximately 35,000 people, most of whom are poor, homeless, or mentally ill. Gov. Tim Pawlenty vetoed a bipartisan bill rescuing the GAMC program, as he cut funding for the program to try and balance the budget. However, Democrats in the state legislature attempted to override the veto. On February 25, the state senate voted to override the veto, by a vote of 45 to 21. However, on March 1, the state house could not get the votes to also override the veto. As of press time, Democrats were negotiating with the governor’s office to save the GAMC program. For more information, visit http://www.dhs.state.mn.us/GAMC.

Utah. State lawmakers have proposed a bill to limit the amount of damages available under medical malpractice lawsuits. Currently, the limit is set at $480,000, but the bill would cut that to $250,000. This $250,000 limit could reduce over medical costs by 0.5%. For more information, visit http://le.utah.gov/.

Vermont. A recent report found that it might have cost the state $1 million less per year if the state had run the Catamount Health insurance plan. In 2006, the state legislature created Catamount Health to give state residents without health insurance a more affordable option. However, in negotiations to win support from Gov. Jim Douglas, the legislature agreed that private insurance companies would provide the coverage, while the state would determine eligibility for the coverage and subsidize the monthly cost for enrollees. The legislation required that the Center for Health Policy, Planning and Research (CHPPR) at the University New England in Maine would study the administrative costs after two years of operations. CHPPR found that if the same office that administers Medicaid and the Vermont Health Access Program also ran Catamount, administrative costs would decrease by approximately $1 million per year. For more information, visit http://www.une.edu/news/uneinnews/.

West Virginia. The state house has introduced a measure (HB 4272) that would mandate the coverage of birth control for teens covered by their parents’ insurance. Groups advocating for this measure report that the measure would cut down on unintended pregnancies and abortions, as the rate of West Virginia teens having children has risen 11% since 2006. Currently, the state does require insurers to cover the cost of contraceptives; however, that coverage is not required fro dependent minors. For more information, visit http://www.legis.state.wv.us/index.cfm.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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