Johns Hopkins Institutions



Legislative Hotline

2004 SESSION OF THE
MARYLAND GENERAL ASSEMBLY



Volume 12, Number 4 February 18, 2004


Here are some of the hot issues as the 2004 Legislative Session develops:

MEDICAID BUDGET HEARING


BILLS INTRODUCED
STAFF CONTACT INFORMATION

MEDICAID BUDGET HEARING

While the Governor's Medicaid budget allowance totals more than $3.99 billion, an increase of $144 million, the Department of Legislative Services (DLS) noted that the Medicaid budget would require an additional $70 million to cover anticipated costs. Although the Governor's allowance assumes the continuation of the cost containment actions adopted during FY 2004, including hospital day limits, DLS recommended an additional $10 million in reductions for hospital payments due to the projected budget shortfall.

The only funding increase assumed in the budget is an enhancement to nursing home rates ($24.6 million) designed to mitigate the impact of a proposed $1,200 nursing home bed tax that would generate $34.7 million. Legislative Services notes that under the Administration's proposal, nursing homes that fill at least 53%-62% of their beds with Medicaid patients would realize a net financial gain, depending on occupancy. It should also be noted that the proposal would levy the bed tax on hospital's sub-acute beds, but exclude nursing home beds located in continuing care retirement communities.

The Department of Legislative Services included a detailed discussion of the financial performance of Managed Care Organizations (MCOs) noting that four of the six MCOs reported positive margins for CY 2002 while collectively the MCOs reported losses in excess of $13 million. Upon review of the Maryland Insurance Administration annual filings, DLS suggest that unusually high administrative expenses were masking the true margins for some MCOs. For example, three MCOs, after adjusting for excessive administrative costs experienced margins in excess of 6% while two MCOs that were paid the second and third highest premiums per enrollee, indicating they were serving a sicker population, suffered losses in CY 2002. DLS noted that the overall funding of the HealthChoice program appears sufficient, however, the differences in financial performance are likely attributable to a myriad of factors including efficiency, adverse risk selection, and differences in provider rates.

In addition to the discussion of the financial performance of the MCOs, the DLS analyst reported on the fact that three MCOs (Jai, Helix, and Americagroup) reported a medical loss ratio (MLR) of less than the statutorily required 85%, and enjoyed the highest adjusted margins for CY 2002. In order to meet the 85% MLR, the three MCOs would either need to increase medical spending by $16.6 million or receive $19.5 million less in premiums. The analyst also combined the MLR with an analysis of the MCO health outcomes, using the HEDIS measures collected by DHMH, which showed that two of the MCOs with the lowest MLR also received below average health outcome measures. Using this analysis, the Department of Legislative Services recommended that DHMH develop a methodology for sanctioning MCOs that report below average health outcomes and fall below the 85% MLR, recovering $9.1 million for the Medicaid program.

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BILLS INTRODUCED
Business Opportunites
General Education
General Health Care
Health Care Facilities
Health Care Practitioners
Higher Education
Insurance
Medicaid
Operating Budget
Pharmaceuticals
Public Health
Research
Taxes
Tort Reform
Miscellaneous



BILLS INTRODUCED

Business Opportunities

HB289  Maryland Historical Trust - Heritage Structure Rehabilitation Tax Credit Program
House Bill 289 (Senate Bill 190) establishes January 1, 2010 as the program sunset date. The bill also authorizes the Director to charge fees for application reviews.

The bill also prohibits the Director from certifying applications for completed or substantially completed projects. House Bill 289 adds language from the Comptroller regarding claiming credits and tax return audits.

For Commercial Projects the bill:

1. Removes $15 million tax credit cap from calendar year 2004.
2. Deletes language that requires that rehabilitations of multiple structures that are functionally related be viewed as one project.
3. Creates annual tax credit cap of $30 million.
4. Creates a time limit for completion and submission of Request for approval of completed rehabilitation time limit set at 30 months from Director's certification of request for certification of proposed rehabilitation application. Failure to complete project within 30-month timeframe would result in forfeit of credits with no recourse. Also, the project sponsor may voluntarily withdraw an approved Part 2 application within 12 months of the Director's approval of Part 2 with no penalties.
For Owner-occupied Residential Projects, the bill creates a per-project tax credit cap of $50.

Effective Date: June 1, 2004

For more information, please contact: Bret Schreiber

HB588  University System of Maryland - City of College Park - Payments in Lieu of Taxes PG 330-04
House Bill 588 requires the University System of Maryland to make payments in lieu of taxes to the City of College Park for any property that the System purchases subject to the property tax on January 1, 2004. The payments required shall be the product of multiplying the applicable college park property tax rate times the full assessed value of the real and personal property tax of the land as determined under the tax property article.

Effective Date: October 1, 2004

For more information, please contact: Bret Schreiber

HB732  Intercounty Connector - Prohibition
House Bill 732 prohibits the Maryland Department of Transportation and the Maryland Transportation Authority from spending any funds or granting any approvals or permits relating to the right-of-way acquisition for, or the design or construction of, the Intercounty Connector.

Effective Date: October 1, 2004

For more information, please contact: Bret Schreiber

[ Go to Bills Introduced]

General Education

SB245  Bridge to Excellence in Public Schools Act - Trigger Provision - Repeal
This emergency bill repeals the "trigger provision" in the Bridge to Excellence in Public Schools Act of 2002. It eliminates the need for the General Assembly to pass a joint resolution in order to continue with full implementation of the funding formulas established in the Bridge to Excellence legislation.

In order for the FY 2005 State education aid that was enacted in the Bridge to Excellence in Public Schools Act to be fully implemented, the General Assembly must pass a joint resolution by the fiftieth day of the current legislative session stating that the additional aid is within the State's fiscal resources. If the joint resolution were passed, statutory formula-driven aid that was enacted in the Bridge to Excellence legislation would continue to phase in from 2005 to 2008.

If the joint resolution is not passed, the minimum required aid for each local board of education in FY 2005 would equal 105% of FY 2004 aid under the Bridge to Excellence Act instead of the greater statutory formula amounts. Minimum required funding in FY 2006 would be equal to 110.25% of FY 2004 aid, and minimum required funding in FY 2007 and 2008 would be equal to 115.75% and 121.50% of FY 2004 aid respectively.

Effective Date: Emergency Measure, effective upon enactment

For more information, please contact: Bret Schreiber

SB266  Higher Education - Maryland Teacher Scholarship Program
Senate Bill 266 extends the service obligation for recipients of Maryland Teacher Scholarships for a period of 5 years. The bill also requires recipients to teach in schools that are in shortage areas in the State, receives federal funds under Title 1 of the elementary and secondary education act or a school identified as being restructured.

Effective Date: June 1, 2005

For more information, please contact: Bret Schreiber

[ Go to Bills Introduced]

General Health Care

SB466  Workers' Compensation - Medical Services and Treatment - Health Care Provider Panel
The bill allows an employer to require its employees to choose a health care provider from a panel of at least three health care providers, established by the employer. If an employee chooses to seek care from a provider for worker's compensation that is not on the panel provided to the employee, then the employer or their insurer is not responsible for the medical expenses incurred.

Effective Date: October 1, 2004

For more information, please contact: Jim Kaufman

[ Go to Bills Introduced]

Health Care Facilities

SB620  Money Follows the Individual Accountability Act
The bill requires nursing facilities to refer any resident who desires to live in the community to DHMH for assistance. Such assistance will include providing information on community-based serves available to the resident, as well as assistance with form completion or other necessary processes. DHMH will be required to report to the Governor and General Assembly on their efforts to promote home and community-based services.

Effective Date: July 1, 2004

For more information, please contact: Sheila Higdon

[ Go to Bills Introduced]

Health Care Practitioners

HB384  Maryland Pharmacy Act - Practice of Pharmacy - Administration of Medication
The bill alters the definition of the term practice pharmacy to include administering medication to an individual in accordance with regulations adopted by the State Board of Pharmacy, and requires the Board to consult with the State Board of Physicians and the State Board of Nursing before adopting regulations to implement this change.

Effective Date: October 1, 2004

For more information, please contact: Sheila Higdon

HB519  Pharmaceuticals - Marketing - Disclosure and Registration
The bill requires a pharmaceutical manufacturing company to disclose to the Board of Pharmacy specified marketing information and the value of any gift, fee, payment, subsidy or other economic benefit provided in connection with marketing or detailing pharmaceuticals to any physician, hospital, nursing home, pharmacist or health plan administration. Exempt from this reporting requirement are the following:

-  free samples of prescription drugs intended for distribution to patients,
-  payment of reasonable compensation and expenses connected to clinical trials or research studies,
-  gift, fee, payment, subsidy or economic benefit with value of less than $25, and
-  scholarships or other support for medical students, residents and fellows to attend a significant education, scientific or policy-making conference of a national, regional or specialty medical or other professional association if the recipient of the scholarship or other support is selected by the professional association.
Effective Date: July 1, 2004

For more information, please contact: Sheila Higdon

HB556  Medical Records - Physician Orders for Life-Sustaining Treatment
This bill would create a "Physician's Orders for Life-Sustaining Treatment" form that would document the patient's preferences for: the use of life-sustaining procedures, transfer to a hospital, any other matter considered appropriate by the Office of the Attorney General to accomplish the purposes of this form. This form would have to be consistent with the decisions of a competent individual, an advance directive of an individual incapable of making an informed decision, or a health care agent. This form has to be signed by the attending physician but may be completed by any health care provider under the attending's supervision. This form must accompany the patient when they are transferred to another health care provider or discharged.

Effective Date: October 1, 2004

For more information, please contact: Suchita Lorick

HB602  State Board of Nursing - Nursing Assistants and Medication Technicians - Certification
The bill requires an individual to be certified by the State Board of Nursing before practicing as a medication technician. Following completion of a Board-approved course in medication administration, the individual would become a "certified medication technician". The bill also stipulates terms for recertification of the CMT.

Effective Date: October 1, 2004

For more information, please contact: Sheila Higdon

HB715  Hospitals - Maternity Patients - Shaken Baby Syndrome
This bill would require hospitals that provide maternity and OB services to provide written information about Shaken Baby Syndrome to a maternity patient prior to discharge. It would require a signature from the patient acknowledging receipt of the materials and a copy to be stored on file at the hospital. The Maryland Center for Maternal and Child Health in the Family Health Administration would provide this information in both English and Spanish.

Effective Date: October 1, 2004

For more information, please contact: Suchita Lorick

SB361  Health Occupations - State Board of Dental Examiners - Issuance of Permits
The bill alters the authority of the State Board of Dental Examiners to adopt regulations governing the administration of conscious sedation. It prohibits the Board from issuing a permit to a facility where a dentist administers nitrous oxide alone and not in conjunction with another method of diminishing pain or medication used for the diminution or elimination of anxiety.

Effective Date: October 1, 2004

For more information, please contact: Sheila Higdon

SB406  State Board of Nursing - Skilled Nursing Assistants - Establishment and Certification
The bill requires the State Board of Nursing to adopt regulations establishing categories of skilled nursing assistants and qualifications for each category. It also provides that skilled nursing assistants must meet requirements set by the Board to qualify for certification and renewal of certification.

Effective Date: October 1, 2004

For more information, please contact: Sheila Higdon

[ Go to Bills Introduced]

Higher Education

HB440  Higher Education - Student Financial Assistance Fund
House Bill 440 establishes the Student Financial Assistance Fund in the Office of Student Financial Assistance in the Maryland Higher Education Commission. The fund consists of repayment obligations incurred by recipients of student financial assistance, scholarships, or grants administered by the Commission and paid to the State.

Effective Date: July 1, 2004

For more information, please contact: Bret Schreiber

HB641  Higher Education - Community Colleges - Unrestricted Grants
House Bill 641 requires community colleges to receive additional ongoing unrestricted grants by repealing the termination date of the existing law. The following community colleges were receiving the following amount of dollars;

(i) $500,000 to Allegany College of Maryland;
(ii) $500,000 to Garrett Community College,
(iii) $500,000 to Hagerstown Community College,
(iv) $250,000 to Carroll Community College,
(v) $250,000 to Cecil Community College,
(vi) $250,000 to Chesapeake College, and
(vii) $250,000 to Wor-Wic Community College.
In addition to the amounts specified above, in Fiscal Years 2003, 2004, and 2005, the boards of Allegany College of Maryland and Garrett Community College were to receive the following unrestricted grants:
(i) $360,000 to Allegany College of Maryland, and
(ii) $240,000 to Garrett Community College.
These appropriations were to end in June 2005, however, this bill will repeal that provision allowing these schools to continue to receive the above amounts.

Effective Date: July 1, 2004

For more information, please contact: Bret Schreiber

HB959  Higher Education - University System of Maryland - Governing Authority
House Bill 959 provides that the authority of the Board of Regents of the University System of Maryland may not be superseded by any other State agency or office in management affairs except by provision of law that specifically references the University System. The bill allows the University System to create personnel positions without requiring a specific provision in the State budget. Previously, personnel positions had to be identified in the state budget.

Effective Date: July 1, 2004

For more information, please contact: Bret Schreiber

SB289  Higher Education - Community Colleges - Funding
Senate Bill 289 declares the intent of the General Assembly to restore full funding in FY 2005 for the Senator John A. Cade Funding Formula for Community Colleges.

Effective Date: July 1, 2004

For more information, please contact: Bret Schreiber

SB428  State Government - State Team Sport - Lacrosse
Senate Bill 428 designates lacrosse as the state team sport in Maryland.

Effective Date: October 1, 2004

For more information, please contact: Bret Schreiber

SB473  College Affordability - University System of Maryland - Cap on Tuition Increases
Senate Bill 473 states that the Board of Regents may not approve and a constituent institution may not impose an increase in the tuition charged for an academic year to a resident undergraduate or graduate student that exceeds the consumer price index for the preceding calendar year.

Effective Date: July 1, 2004 (The bill sunsets on June 30, 2006)

For more information, please contact: Bret Schreiber

SB615  Higher Education - Maryland Digital Library - Established
Senate Bill 615 establishes the Maryland Digital Library (MDL), as a program within the Maryland Higher Education Commission. This bill will codify the existing practices among the participating MDL members, enhance academic library cooperation throughout the State, and foster the development of Maryland library services for the 21st century. The legislation is budget neutral.

This program began in FY 2001. MDL was supported by funds provided by the State through MHEC. In FY 2002, with over 50 academic library participants, MDL was funded partially by MHEC and partially by the individual institutions. Since July of 2002, MDL has been totally self-funded, and through consortial purchasing, provides a core set of electronic journals, reference works, e-books and databases to support teaching and research throughout the State. Since FY 2001, students and faculty at participating Maryland colleges and universities have conducted over 4 million searches and retrieved over 3.5 million electronic journal articles and books.

The provision of these "virtual" library services to support teaching and research in Maryland is just one of the programmatic elements of the MDL. Other important initiatives include:

· Digitizing and creating Internet access to unique collections in Maryland academic libraries
· providing shared access to online library catalogs for students and faculty and MDL participating institutions
· developing programs to train Maryland library users to access materials via the Internet:
Effective Date: October 1, 2004

For more information, please contact: Bret Schreiber

[ Go to Bills Introduced]

Insurance

HB581  Health Insurance - Mandated Benefits - Exclusions for Preexisting Conditions
The bill applies to an individual health benefit plan that covers the individual and their dependents. The bill states that an insurer may exclude coverage for a mandated health benefit if the benefit relates to a condition revealed during medical underwriting and that the condition is excluded by a waiver rider that was signed by the insured.

Effective Date: October 1, 2004

For more information, please contact: Jim Kaufman

SB454  Health Insurance - Health Insurance Benefit Cards
The bill requires a health insurance carrier to provide its insured a benefit card annually that includes the following data elements:

- name or identifying trademark of the carrier or the benefits manager,
- name and identification number of the insured subscriber or enrollee,
- name and identification number of the guarantor employer, if any,
- type of delivery system (ie, POS, HMO, etc),
- effective date of coverage,
- any applicable co-payments,
- telephone number that a provider may call for health benefits assistance, and
- all electronic transaction routing information and other information required to process the claim electronically.
Effective Date: October 1, 2004

For more information, please contact: Jim Kaufman

SB529  Health Insurance - Maryland Health Insurance Plan - Specialist Services
The bill requires that any plan offered by the Maryland Health Insurance Plan that includes specialty services must allow a member to use an out-of-network specialist if no in-network specialties are within 25 miles of the member's residence. In addition, the plan may not impose a higher co-payment or coinsurance requirement for using the out-of-network provider.

Effective Date: October 1, 2004

For more information, please contact: Jim Kaufman

SB715  Access to Health Care and Community Health Care Safety Net Act of 2004
The bill expands access to care for low income and uninsured Marylanders through several new or modified programs. First, the bill expands Medicaid eligibility for individuals whose annual household income is at or below 100% of poverty. However, this expansion is limited to primary and specialty health care services, excluding hospitalization. The bill creates the Small Employer Health Insurance Program that will offer business with less than 50 employees an affordable health insurance option. For employees who qualify for Medicaid, the Small Employer program shall submit the employer health insurance contribution to DHMH to serve as the State matching funds in order to leverage federal Medicaid funds.

The bill creates a seven member Community Health Resources Commission, which is charged with the following:

- adopting regulations related to enforcement of this bill
- establishing criteria to qualify as a community health resource, including:
· a federally qualified health center
· an FQHC "look-alike",
· a community health center,
· a migrant health center,
· a health care program for the homeless,
· a primary care program for a public housing project,
· a local nonprofit and community owned health care program,
· a school based clinic,
· a teaching clinic,
· any other program or center determined by the Commission - identifying services a community health resource shall provide including family medicine, general internal medicine, general pediatric care, laboratory service, pharmacy services, and OB/GYN services
- administering operating and capital grants for qualifying health resources,
- assisting individuals with incomes less than 300% of poverty in accessing care through community health resources,
- creating sliding scale fees for individuals between 100% to 300% of poverty,
- serving as the State's liaison to the Federal Bureau of Primary Heath Care to identity health professional shortages, medically underserved areas, and medically underserved populations
- establishing uniform data collection on primary care services and individual served,
- developing a uniform information and data management system to be used by all centers that will be integrated with local hospitals to track treatment and provide real-time indicators of available resources,
- developing incentives for specialists to serve referrals from community health resources to include reduce licensure fees and tax credits/dedications for providing uncompensated care,
- working with the Motor Vehicle Administration to collect voluntary information on income and insurance status to refer individuals to care.
Meanwhile, the Community Health Resources Commission Fund is designed to cover administrative costs, provide grants to qualifying community health resources, transfer funds to DHMH to pay for Medicaid enrollees between 45% and 100% of poverty (as permitted by federal waivers), and provide stipends to specialist to expand access to care. The fund is supported by:
1. a 2% premium tax on HMOs and MCOs
2. a 6% payroll tax on non-profit businesses and an 8% payroll tax on for-profit companies that employ more than 10,000 employees
      a. a business may claim a credit against the payroll tax, up to the amount of the tax, for employer expenditures to provide health insurance
       b. the payroll tax is only applied to wages taxable for Social Security (FICA) purpose
       c. the employer may exclude wages paid to an employee who is enrolled in or eligible for Medicare
The 13 member Council on Hospital and Community Health Resources Relations is charged with recommending ways for hospitals and community health resources can partner to increase access to care. The council will consider programs for hospital financial and operational support for specialty care and the creation of a reverse referral program.

The nine member Advisory Council on School Based Community Health Centers Expansion is charged with recommending how to expand school-based community health centers, creating a premium and sliding fee schedule, creating an MCO and private insurance reimbursement rate schedule for school-based community health providers, and identifying barriers to reimbursement of licensed health care providers.

Other Provisions

The bill creates a revolving loan fund and a new Market Tax Credit program to assist lending institutions and community development groups in obtaining capital financing through federal programs to support community health resources. The bill also creates a Capital Bond Committee to assist FQHCs in applying for grants from the State's Federally Qualified Health Centers Grant Program. This program assists FQHCs in constructing, renovating, or equipping new facilities. The bill limits the grant to the lesser of $500,000 or 50% of project costs, except for projects in designated areas that are eligible for poverty area funding under federal regulations, in which the maximum grant of $500,000 may be used to cover up to 75% of the project costs.

The bill also modifies the hospital's community assessment report to include a description of efforts to assist specialists in serving the uninsured. The Community Health Resources Commission is required to identify methods to increase reimbursement rates paid by private and public insurances to providers who offer services through the community health resource programs.

Finally, the bill states that a health insurance carrier, including an HMO (but does not specify an MCO), shall not discriminate against any provider who is located in the carrier's service area, is willing to meet the terms for provider participation, and is a qualified community health resource. This section also requires the carrier to pay a community health resource provider a rate that is equal to the rate paid to FQHCs as required by §1902(A)(13)(e) of the Social Security Act.

Effective Date: October 1, 2004 (Note, many provisions of the bill are subject to the approval of federal waivers and may impact specific implementation dates)

For more information, please contact: Jim Kaufman

SB737  Public-Private Partnership for Health Coverage for All Marylanders
The Health Care for All bill attempts to expand health insurance coverage to all Marylanders through a combination of a Medicaid expansion and a modification of the Maryland Health Insurance Plan (MHIP) to a new program, MDCare. The Medicaid expansion is for parents up to 100% of poverty. In this expansion, the Department may not require an asset test for parents or children, allow self-declaration of income and eligibility information, allow renewal procedures be conducted by mail, and guarantee enrollment for 12 months.

The bill removes the CHIP family contribution for families with incomes between 85% and 200% of poverty and expands CHIP eligibility to 400% of poverty. In addition, a child eligible for CHIP may not enroll if the parent is insured through an employer health plan that offers family coverage, the employer's contribution is at least 30% of the annual premiums, the benefits are equal to the Comprehensive Standard Health Benefit Plan, and the premium required is more than 6% of the family's income. If the employer sponsored plan does not meet these requirements, the child will be assigned to an MCO, with a sliding scale premium rate.

The bill also modifies the current Maryland Health Insurance Plan (MHIP) and renames it MDCare. MDCare is defined as a quasi-public nonprofit corporation designed to provide affordable, comprehensive health benefits to the uninsured. This section defines an uninsured person as someone whose annual family income is below 150% of poverty in FY 2005 or beginning in FY 2006 and thereafter, family income below 350% of poverty. In order to quality for MDCare, the individual's employer does not offer health insurance benefits comparable to the Comprehensive Standard Health Benefit Plan or offers a plan that costs more than 3% of the person's income for individual coverage or 6% for family coverage. Other provisions of the bill relating to MDCare include:

· Adding eight additional members to the current MHIP board including representatives of the disabilities community, small business community, labor unions, physicians, and consumers,
· Maximizing volume discounts by allowing MDCare to aggregate the purchase of prescription drugs for enrollees in MDCare, the Senior Prescription Drug Program, and Medicaid,
· Allowing MDCare enrollees to choose an FQHC or school-based health center as the primary care provider, and
· Collecting premiums from MDCare enrollees that will be placed in the MDCare fund -- premiums and cost sharing arrangements will be on a sliding scale
For individuals whose incomes exceed 350% of poverty, unless they can demonstrate health insurance coverage equal to the State Comprehensive Standard Health Benefit Plan, the individual will be subject to an increase State income tax equal to the hospital share of the standard plan. If the individual's annual income is below 350% of poverty and cannot demonstrate health insurance coverage, the individual will be enrolled in MDCare and will be subject to an additional State income tax to reflect the MDCare premium.

The bill establishes the Maryland Quality Institute to develop standardized clinical practice guidelines. The guidelines will be distributed to private and public health plans and provider organizations. In addition, the bill creates an MDCare Universal Coverage Oversight Commission. The Commission is charged with studying the State's progress in achieving universal health coverage, means to closing gaps in coverage, the impact of employer coverage requirements on employment levels, and the appropriateness of the benefits package.

To support the costs of MDCare, the bill levies a payroll tax of 4.5% on federal Social Security wages on employers with less than 10,000 employees. The payroll tax rate increases to 6% for non-profit organizations that employ more than 10,000 employees, while the rate increase to 8% on for-profit companies that employ more than 10,000 individuals. In order to account for inflation, the MDCare Board may increase the payroll tax annually; however, the rate may not exceed 5.5% of the total wages paid to employees during the calendar year. The employer may claim a credit against the payroll tax, up to the limit of the tax, for expenditures related to providing employee health insurance benefits.

The bill also levies a $0.50 cigarette tax that will be placed into a special fund used to increase Medicaid provider reimbursement rates. The fund will transfer $100 million to Medicaid and any remaining balances to the State's General Fund annually.

Section 16 of the bill requires MDCare's Board to develop an internet based "electronic-care management" (e-CM) system. The system shall include verification of eligibility, referral management, automatic claims submission, and direct deposit of reimbursements to provider accounts. This section requires a phase-in but requires all primary care providers with significant MDCare caseloads to participate in the e-CM program.

Effective Date: July 1, 2004 (Note, various sections have different implementation dates due to complexity of the bill)

For more information, please contact: Jim Kaufman

[ Go to Bills Introduced]

Medicaid

HB665  Maryland Medical Assistance Program - Maryland Children's Health Program
The bill lowers the income requirement from 200% of poverty to 185% of poverty for those CHIP eligible children who must enroll in an MCO. In addition, the bill modifies the family income level for those eligible children who are required to make a family contribution from 200% to 185% of poverty. The family contribution is also clarified by stating that it cannot exceed 2% of the family's income, but allows the Department to implement a tiered premium structure based on family income and size.

Effective Date: July 1, 2004

For more information, please contact: Jim Kaufman

SB360  Department of Health and Mental Hygiene - Medical Assistance Programs - Disclosure of Employer
The bill requires an individual applying for Medical Assistance to identify the employer of the proposed beneficiary. If the beneficiary is not employed, the applicant shall identify the employer of any adult who is responsible for providing any financial support to the proposed beneficiary. By October 1 of each year, the Department shall report the employer's location and the number of employees enrolled in Medicaid.

Effective Date: October 1, 2004

For more information, please contact: Jim Kaufman

[ Go to Bills Introduced]

Miscellaneous

SB320   Water Pollution - The Chesapeake Bay Watershed Restoration Fund
This bill establishes an environmental surcharge for any user of a wastewater facility in the state. Each residential dwelling will pay a surcharge of $2.50 per month. For non-residential users there is a formula to calculate the monthly charge. The formula is based on the fact that the average residential dwelling uses 250 gallons of water per day. The bill equates an average of 250 gallons of wastewater per day to 1 unit. For less than 2,000 units of wastewater the monthly surcharge is $2.50 per unit, for greater than 2,000 units up to 8,000 units the surcharge is $1.25. There is no charge for greater than 8,000 units. For example:

Average daily use = 2,000,000 gallons of wastewater
2,000,000 / 250 = 8,000 units
2,000 units * $2.50 = $5,000
6,000 units * $1.25 = $7,500
$5,000 + $7,500 = $12,500 per month
$12,500 * 12 months = $150,000 per year
The surcharge may be adjusted for FY 2008 and subsequent years. The bill establishes the Chesapeake Bay Watershed Restoration Fund to which the funds collected will be deposited. The Fund will provide financial assistance for projects relating to planning, design, construction, and upgrades of wastewater facilities to achieve enhanced nutrient removal.

Funds in the watershed restoration fund may be used only to award grants for up to 100% of eligible costs of projects relating to planning, design, construction, and upgrade of a wastewater facility with enhanced nutrient removal technology with a design capacity of 500,000 gallons or more per day. The fund may also be used for a portion of the operation and maintenance costs related to the enhanced nutrient removal technology, and for reasonable administrative costs incurred by a billing authority for a wastewater facility collecting the surcharge.

The bill also establishes a Watershed Restoration Fund Advisory Committee. The Committee is charged with performing an analysis of the cost of nutrient removal from wastewater facilities, identifying additional sources for funding, and to make recommendations regarding the appropriate environmental surcharge to be assessed in FY 2008 and subsequent years.

Effective Date: July 1, 2004

For more information, please contact: Heather Woods Barthel

SB393   Election Law - Voting Systems - Voter-Verified Paper Records
Senate Bill 393 requires that any voting system that does not use a document ballot produce a paper record of a voter's ballot choices and provide the voter with an opportunity to inspect the paper record. The bill requires that the paper records be preserved at the polling place in a manner similar to document ballots so that the paper records may later be used in a manual recount if necessary.

Effective Date: October 1, 2004

For more information, please contact: Bret Schreiber

[ Go to Bills Introduced]

Operating Budget

SB197   Public Education Bridge to Excellence - Funding - Video Lottery Terminals
This Administration bill authorizes up to 15,500 video lottery terminals (VLTs) at six locations (four horse racing tracks and two nontrack unspecified locations). The bill also provides for one-time application fees; creates the Education Trust Fund (ETF) and other special funds; and continues the current prohibition on additional forms of commercial gambling.

General fund revenues are expected to increase in FY 2005 and FY 2006 due to one-time application fees. General fund revenues are expected to decrease beginning in FY 2006 due to decreased lottery sales; future year losses should increase with increased VLT implementation, totaling $69 million in FY 2009. General fund expenditures may increase in FY 2006 and beyond due to Attorney General expenses. General fund expenditures are expected to decrease in FY 2006 and beyond due to the availability of revenues from the ETF. Special fund revenues and expenditures would increase for lottery agency administrative expenses, local aid, purse dedication, bred funds, gambling addiction treatment expenditures, and education beginning in FY 2006, except lottery expenditures, which begin in FY 2005.

Revenues for localities with VLT facilities would increase by approximately $5.4 million in FY 2006, increasing to $75.5 million at VLT full implementation in FY 2009. Future year revenues represent the increased VLT operation and efficiency along with revenues distributed from nontrack VLT facilities. Local expenditures increase significantly for local governments with VLT facilities.

Effective Date: June 1, 2004

For more information, please contact: Bret Schreiber

[ Go to Bills Introduced]

Pharmaceuticals

HB840   Pharmacy Benefits Managers
The bill requires a pharmacy benefits manager (PBM) to perform duties with care, skill, diligence, and in accordance with standards of care established by the pharmaceutical benefits management industry. The PBM is required to notify in writing of any activity, policy, or practice that directly or indirectly presents a conflict of interest. The PBM must provide all financial and utilization information requested by the carrier pertaining to the provision of benefits and financial information relating to services to that carrier. The bill states that a PBM may substitute a lower priced generic drug for a higher priced drug, but may not substitute a higher priced drug. The PBM is required to consult with the prescribing health care provider with regard to dispensing a substitute prescription and must disclose the costs of both drugs and any benefits or payments that the PBM may incur as a result of the substitution. The PBM is required to pass on the carrier or the member any payment or benefit received based the volume of sales of a particular drug.

Effective Date: October 1, 2004

For more information, please contact: Jim Kaufman

[ Go to Bills Introduced]

Public Health

HB299  State Government - Department of Disabilities
This bill would create the Department of Disabilities as a principal department of State government. The Department of Disabilities would organize the Maryland Advisory Commission on Disability Policy and the Disability Implementation Board.

To provide support to individuals with disabilities, the Department would develop a state disability implementation plan, make budget recommendations, apply for funds, modify or consolidate support and collaborate with other government agencies. The Implementation Board would develop and carry out the state disability implementation plan and the Commission would advise the Department in carrying out its duties.

Effective Date: July 1, 2004

For more information, please contact: Suchita Lorick

HB844   Hospitals - Maternity Patients - Providing Information about Postpartum Depression
This bill would require hospitals that offer maternity and obstetrical services to provide written information about postpartum depression to a maternity patient prior to discharge.

Effective Date: October 1, 2004

For more information, please contact: Suchita Lorick

SB530   Compulsive Gambling - Prevalence Study and Replication Prevalence Studies
The bill would require DHMH to conduct a prevalence study and replication prevalence studies to measure the rate of problem and pathological gambling in Maryland. The initial study would have to be completed on or before September 30,2005 and the replication studies would conducted at least every 5 years.

Effective Date: October 1, 2004

For more information, please contact: Suchita Lorick

SB611   Vehicle Laws - Protective Headgear Requirement for Motorcycle Riders - Exceptions
This bill would provide exceptions to the prohibition against riding a motorcycle without a helmet for the following:

1. Three wheeled motorcycles with an enclosed cab.
2. An individual at least 21, who has been licensed for at least 2 yrs.
3. An individual at least 21, who has completed a safety course.
4. An individual at least 21, who is a passenger on amotorcycle operated by an individual in items 1-3.
Effective Date: June 1, 2004

For more information, please contact: Suchita Lorick

SB662   Public Safety - Handgun Identification Requirements - Repeal
This bill would repeal a provision requiring handgun manufacturers to ship the following with the handgun: a shell casing of a projectile discharged from the gun and information required for identification of the gun and shell casing. It would also repeal the provision requiring the dealer receiving the handgun to report to the State Police that the manufacturer complied with the above requirements and forward the sealed container to the State Police upon sale of the handgun. Additionally, it would repeal the requirement that the police crime laboratory enter relevant information into a database.

Effective Date: October 1, 2004

For more information, please contact: Suchita Lorick

SB496   Public Health - Compulsive Gambling Treatment Program
This bill would establish the Compulsive Gambling Treatment Program within DHMH and would also require the Governor to directly allocate $200,000 on a one-time basis to the Compulsive Gambling Center, Inc. to enable the Center to provide residential and outpatient treatment services to compulsive gamblers and their families. Funds would need to be appropriated in a supplemental budget for FY2005 or FY2006 if not included in FY2005.

Effective Date: Emergency Measure (effective upon enactment)

For more information, please contact: Suchita Lorick

[ Go to Bills Introduced]

Research

SB472  Human Cloning Prohibition Act of 2004
At first glance this bill appears to ban only the cloning of humans, but because of the way "Human Cloning" is defined it bans all human stem cell research and development.

In the bill, "Human Cloning" is defined as human asexual reproduction accomplished by introducing the nuclear material of one or more human somatic cells into a fertilized or unfertilized oocyte whose nucleus has been or will be removed or inactivated to produce a living organism at any stage of development with a human or predominantly human genetic constitution. Whether you are going to attempt to clone a human or grow stem cells, the first three steps are the same. Since the bill bans the production of any living organism at any stage of development with a human or predominantly human genetic constitution, stem cell research would therefore be banned. The bill does allow scientific research that uses nuclear transfer or other cloning techniques to produce: molecules, DNA, cells other than human embryos, tissues, organs, plants, or animals other than humans.

The bill provides for both civil and criminal penalty provisions. The criminal provision is a felony and on conviction is subject to imprisonment not exceeding 10 years or a fine not exceeding $100,000 or both. The civil penalty is not less than $1,000,000 or if the violator derives pecuniary gain from the transaction, they may assess a civil penalty of not more than two times the gross pecuniary gain resulting from the violation.

Effective Date: October 1, 2004

For more information, please contact: Heather Woods Barthel

[ Go to Bills Introduced]

Taxes

SB156  Corporate Income Tax Reform
Senate Bill 156 authorizes the Comptroller to distribute, apportion, or allocate income, deductions, credits, or allowances between two or more organizations, trades or businesses, whether or not incorporated in the U.S. The bill also requires interest expenses and intangible expenses to be added to federal taxable income for the purpose of determining Maryland modified income.

Effective Date: July 1, 2004 (for taxable years beginning after December 31, 2003)

For more information, please contact: Bret Schreiber

[ Go to Bills Introduced]

Tort Reform

SB436  Medical Malpractice Insurance - Rates and Rate Filings
This bill mandates that regarding to medical malpractice insurance rates, consideration should be given to total investment income. A medical malpractice rate is considered excessive if the rate does not reflect the total investment income that the insurer reasonably can be expected to earn on all its assets during the period of time the rate will be in effect; or the rate for any other reason is unreasonably high for the insurance coverage provided.

Effective Date: October 1, 2004

For more information, please contact: Heather Woods Barthel

SB438  Medical Malpractice Insurance - Excessive Rates
This bill mandates that a medical malpractice insurance rate is excessive if the rate does not reflect all dividends, rate credits, and any other form or type of refund or credit that the insurer has issued, or reasonably may be expected to issue during the period of time the rate is in effect; or the rate for any other reason is unreasonably high for the insurance coverage provided.

Effective Date: October 1, 2004

For more information, please contact: Heather Woods Barthel

SB544  Medical Malpractice Reform - Tax Credit for Malpractice Insurance
An individual or corporation may claim a credit against the state income tax if the amount of medical malpractice insurance premiums paid by the individual or corporation for a licensed physician in the state exceeds 14% of the amount of gross income attributable to the medical practice of the licensed physician. They may claim credit in the following amounts:

(1) 50% of the amount of medical malpractice premiums paid that is more than 14% but less than or equal to 16% of gross income; and
(2) 100% of the amount of medical malpractice premiums paid that exceeds 16% of gross income.
The credit may not be claimed if the licensed physician has paid a malpractice claim within the previous 5 years.

Effective Date: July 1, 2004

For more information, please contact: Heather Woods Barthel

SB545  Medical Malpractice Insurance - Base Rates
If an insurer charges different rates for different medical specialties or combinations of medical specialties, the base rate paid by the highest-rated medical specialty or combination of medical specialties may not be greater than 600% of the base rate paid by the lowest-rated medical specialty or combination of medical specialties.

Effective Date: October 1, 2004

For more information, please contact: Heather Woods Barthel

SB708  Medical Malpractice Insurance - Policies with Deductibles
Each insurer that offers medical malpractice insurance policies in the state shall offer, in addition to a basic policy, policies with deductibles in the amounts of $10,000, $25,000, and $50,000. The bill also requires the Maryland Insurance Administration to report to the Senate Finance Committee and the House Economic Matters Committee on or before November 30, 2006 on the effectiveness of this policy.

Effective Date: October 1, 2004

For more information, please contact: Heather Woods Barthel

[ Go to Bills Introduced]


STAFF CONTACT INFORMATION
Please contact Government Relations if you have concerns or would like additional information. Your input assists us greatly in evaluating and formulating the position of Johns Hopkins on all legislation.

Legislative Session Office
47 State Circle, Suite 203
Annapolis, MD 21401
410-269-0057
fax 410-269-1574


Sheila Higdon shigdon@jhmi.edu
Jim Kaufman jkaufma@jhmi.edu
Bret Schreiber bschreiber@jhu.edu
Heather Woods Barthel hbarthe1@jhmi.edu
Suchita Lorick slorick@jhsph.edu
Mickey Geisler mgeisler@jhu.edu

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Office of Government, Community and Public Affairs.
Last updated 04feb18