Legislative Hotline

2005 SESSION OF THE
MARYLAND GENERAL ASSEMBLY

 

 

 

Volume 13, Number 9������������������������������������������������������������������������������������������� March 30, 2005

 

Here are some of the hot issues as the 2005 Legislative Session develops:

MEDICAL LIABILITY REFORM
MEDICAID MEDICAL LOSS RATIOS


BILLS INTRODUCED
STAFF CONTACT INFORMATION

Medical Liability Reform

 

SB 836, the corrective bill to HB 2 of the Special Session, has now passed both the Senate and the House.Three amendments were introduced on the floor of the House, all of the amendments failed and the bill passed on a 130 – 3 vote.This bill was an emergency measure and passed by more than the required three-fifths majority.If the Governor does not act on the bill by Thursday, March 31st the bill will become effective without his signature.This bill was important to Hopkins as it contained a provision that delays the implementation of the 2% tax on MCO’s until April of 2005.

 

Additionally, the House Judiciary passed House Bill 114, sponsored by Delegate Bobby Zirkin, on Friday.The committee amended the bill to include a number of additional reform measures such as enhanced apology protection, mandatory remittitur, mandatory neutral expert witness, bad faith venue, and additional insurance reform.The bill also provides for a summer task force charged with studying structured judgments, limited immunity for emergency department providers, a no-fault birth related neurological injury fund, and additional insurance reform.The bill passed second reading over the weekend and third reading on Monday.It will now have to pass a Senate committee and the full Senate in the next two weeks in order to become law

 

For further information please contact Heather Barthel.

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Medicaid Medical Loss Ratios

 

The House and Senate committees have adopted identical amendments addressing Medicaid Medical Loss Ratios (MLR).Originally, bills were introduced to repeal the statutory 85% MLR, thereby allowing an MCO to earn larger profits.After several meetings and workgroups, the Department of Health and Mental Hygiene (DHMH) and the MCOs agreed to amendments that retains the 85% MLR, but allows an MCO sanctioned under a violation of the minimum MLR to appeal the decision of the Secretary.In addition, before DHMH may levy a sanction, regulations are required to establish a standard definition of MLR to be used by all MCOs, procedures for reviewing an MCOs financial performance beyond one year, standard data collection and reporting requirements, and the conditions under which the Secretary may levy the sanction.Finally, the amendments prevents DHMH from altering the current quality initiatives unless the performance measures are adopted by regulations and revised targets for the measures are provided to the MCOs at least 3 months prior to implementation.

 

The language regarding the performance measures supersedes language currently included in the FY 2006 operating budget that requires DHMH to withhold 0.5% of the MCOs capitation rates (approximately $8 million in total funds) and pay these funds as incentive payments at the end of the year.The withhold has been opposed by all MCOs because previous incentive funding pools have been re-allocated by the budget committees for other initiatives.

 

For further information please contact Jim Kaufman.

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BILLS INTRODUCED

Budget-Capital
Long Term Care/Nursing Homes


BILLS INTRODUCED

Budget - Capital

HB1605 Creation of a State Debt - Prince George's County - Prince George's County Hospital System

The bill creates a $16 million state grant to the Prince George's County Exectutive and County Council for the design and construction of new facilities at Prince George's Hospital and Laurel Regional Hospital.

 

Effective Date:June 1, 2005

 

For more information, please contact:Jim Kaufman

 

 

Long Term Care/Nursing Homes

SB1012 Nursing Facilities - Quality Assessment - Medicaid Reimbursement

The bill authorizes DHMH to impose a quality assessment on each nursing facility with 41 or more beds.The assessment may not exceed 2% of the net operating revenue for all nursing facilities operating in the state for the previous 3-month period.The funds from this assessment collected by the state shall be used to fund reimbursements to nursing facilities under the Medicaid program.These funds may not supplant funds already appropriated for this purpose.

 

Effective Date:July 1, 2005

 

For more information, please contact:Sheila Higdon

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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


Heather Barthel������������������� [email protected]

Mickey Geisler��������������������� [email protected]

Matt Greenwood������������������ [email protected]

Sheila Higdon��������������������� [email protected]

Jim Kaufman����������������������� [email protected]

John Safapour�������������������� [email protected]
Bret Schreiber��������������������� [email protected]

Cathy Ximenez������������������� [email protected]

 

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