Johns Hopkins Institutions



Legislative Hotline

2003 SESSION OF THE
MARYLAND GENERAL ASSEMBLY



Volume 11, Number 7 February 21, 2003


Here are some of the hot issues as the 2003 Legislative Session develops:

AID TO UNIVERSITY OF MARYLAND MEDICAL SYSTEM
MEDICAID BUDGET
HB 121 - HEPATITIS B - VACCINATION FOR ALL FIRST-TIME ENROLLEES IN INSTITUTIONS OF HIGHER EDUCATION


BILLS INTRODUCED
STAFF CONTACT INFORMATION

AID TO THE UNIVERSITY OF MARYLAND MEDICAL SYSTEM

The House Appropriations' Education and Economic Development Subcommittee heard the budget on state support for the University of Maryland Medical System (UMMS). For FY 2004, the Governor's budget includes $9.7 million in total funds to UMMS, representing a 3.7% increase over FY 2003. The funds are used for uncompensated care at Montebello Rehabilitation Center at Kernan Hospital, an operating subsidy for the R Adams Cowley Shock Trauma Center, and equipment upgrades for the Shock Trauma Center. It should be noted that the $3.5 million equipment upgrades for Shock Trauma is expected to continue through FY 2005. However, the Chairman of the EMS Board noted that based on certain assumptions, support may exceed FY 2005. Finally, the budget analyst noted that in the past that UMMS also received approximately $3 million to address losses incurred in its urban primary care system. These funds were not included in FY 2004. In FY 2003, the $3 million was not included in the original budget, but was later appropriated from another source. The FY 2003 grant reflected the fourth year of funding for the proposed three-year grant.

Dr. Morton Rapoport, President of UMMS, presented the financial pressures that the academic medical center is facing, citing shortages of health professionals, increases in malpractice insurance, and needed technology upgrades. He noted that such pressures are greatest on institutions like UMMS and Johns Hopkins due to the populations they serve. In addition, Dr. Rapoport noted that UMMS is seeking to have the funds for the urban care centers restored in the budget as well as seeking support for these centers from other sources such as foundations.

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MEDICAID BUDGET

The Department of Legislative Services presented the FY 2004 budget to the Senate Finance, and House Appropriations Committees. Overall, the analyst noted that the budget appears to be fully funded for the first time in many years. The Program has faced $100 million shortfalls in past budgets. The Governor's FY 2004 budget reflects a $363.1 million increase, or 10.6%. Medicaid, the largest program in the State's budget, provides care for approximately 625,540 Marylanders, or 11% of the State's population. The analysis included several reports and issue updates to include:

1. Options to Control Costs: Since the program accounts for 16% of the State's total General Fund budget, options included freezing enrollment in the Children's Health Insurance Program, reducing payments to pharmacies and nursing homes, and increasing enrollee cost-sharing requirements should be considered.

2. Health Care Provider Taxes: In order to increase federal fund support for Medicaid, the State could consider levying a provider tax on MCOs or nursing homes. The tax must be both board-based and uniform to avoid a federal hold-harmless exclusion. Therefore, if a tax were levied on nursing homes, those facilities with large Medicaid population would fare better than facilities with a relatively small Medicaid population. For MCOs, if a tax was levied on both HMOs and MCOs, the MCOs could be held-harmless while the State could generate additional funds.

3. Managed Care Organization Capitation Rates: The CY 2003 rates for the MCOs increased 8.5% and for the first time include provisions for administrative costs, profits, and a contingency fee.

The budget analyst recommended a total of $60.4 million in reductions to include a 1% or $11 million reduction to the MCO rates, a $10 million reduction to nursing home payments, and a $9 million reduction for pharmacy reimbursements to reflect the State's increased discount rate.

Several organizations testified in opposition to the proposed reductions. The Maryland Hospital Association testified that while the CY 2003 capitation rates for the MCOs included a provision for profits, not all MCOs enjoy these profits because MCOs, such as the provider-based plans, suffer from adverse selection.

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HB 121 - HEPATITIS B - VACCINATION FOR ALL FIRST-TIME ENROLLEES IN INSTITUTIONS OF HIGHER EDUCATION

On February 11, 2003, the Health and Government Operations Committee had a hearing on "House Bill 121 - Hepatitis B - Vaccination for All First Time Enrollees in Institutions of Higher Education." This bill would require all first-time enrollees at institutes of higher education to receive the first dose of the Hepatitis B vaccine as a condition of enrollment. Also, the enrollee would have to receive the third and final dose within 9 months in order to stay in school. We, along with the Department of Health and Mental Hygiene, and other higher education representatives, met with the sponsor to express our concerns with the bill, and learned that the Delegate planned to amend the bill to apply to middle and high school students only.

Continued discussions with the sponsor altered the bill to focus on the issue from a public health perspective, and to comply in accordance with the Centers for Disease Control recommendations. At the time of the hearing, we discovered that the amendment actually specifies a year (2009) by which all students, K-12, should be vaccinated against Hepatitis B. It also allowed DHMH to develop the plan to accomplish this goal. Another amendment that would include the Hepatitis A vaccination was introduced at the hearing and accepted by the sponsor. We are currently working with the sponsor and the committee to ensure that the bill focuses solely on the Hepatitis B vaccination.

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BILLS INTRODUCED
Bond Bills
Budget
Economic Development
General Education
General Health Care
Health Care Facilities
Health Care Practitioners
Health Insurance
Higher Education
Medicaid
Mental Health
Nursing
Pharmaceuticals
Research
Tobacco Settlement
Miscellaneous



BILLS INTRODUCED

Bond Bills

HB0645     Creation of a State Debt - Shady Grove Adventist Hospital
This bill authorizes the creation of a State Debt not to exceed $700,000. The dollars are to be used as a grant to the Board of Directors of Shady Grove Adventist Hospital for the planning, design, renovation, expansion, repair, construction, and capital equipping of the hospital's emergency department.

Effective Date: June 1, 2003

For more information, please contact: Bret Schreiber


HB0683     Creation of a State Debt - Maryland General Hospital
This bill authorizes the creation of a State Debt not to exceed $385,000. The dollars are to be used as a grant to the Board of Directors of Maryland General Hospital for the planning, design, renovation, repair, construction, and capital equipping of a radiation therapy suite and Cancer Resources Center, located in Baltimore.

Effective Date: June 1, 2003

For more information, please contact: Bret Schreiber


HB0840     Creation of a State Debt - Baltimore City - Kennedy Krieger Institute
This bill creates a state debt in the amount of $1,000,000 to the Board of Trustees of Kennedy Krieger Institute for the renovation and reconstruction of a facility to provide increased laboratory space for research purposes.

Effective Date: June 1, 2003

For more information, please contact: Bret Schreiber


SB0201     Creation of a State Debt - Mt. Washington Pediatric Hospital
This bill authorizes the creation of a State Debt not to exceed $500,000, the proceeds to be used as a grant to the Board of Directors of Mt. Washington Pediatric Hospital for the planning, design, renovation, expansion, repair, construction, and capital equipping of clinical space for the Center for Pediatric and Adolescent Rehabilitation, located in Baltimore City.

Effective Date: June 1, 2003

For more information, please contact: Bret Schreiber


SB0508     Creation of a State Debt - Carroll County General Hospital
This bill authorizes the creation of a State Debt not to exceed $455,000, the proceeds to be used as a grant to the Board of Directors of Carroll County General Hospital for the planning, design, renovation, expansion, repair, construction, and capital equipping of a new outpatient services facility.

Effective Date: June 1, 2003

For more information, please contact: Bret Schreiber


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Budget

HB0329     Moratorium on Expanded Gaming - Commission to Study Video Lottery Terminals in Maryland
This bill prohibits the State from authorizing any additional form of gaming in Maryland for one year. The bill establishes a Commission to Study Video Lottery Terminals in Maryland, and would require the Commission to:

1) review and evaluate the potential effects and fiscal implications of permitting video lottery terminals in the State 2) report findings and recommendations by December 31, 2003.

Effective Date: June 1, 2003

For more information, please contact: Bret Schreiber


HB0935     Budget Reconciliation and Financing Act of 2003
House Bill 935 the Budget Reconcilliation Act of 2003 (BRFA) alters the allocation of uncashed horse racing pari-mutuel tickets and delays payments to colleges and universities; changes the authorized uses of moneys in various funds; reduces the amounts appropriated to various programs and entities; and transfers dollars from various special funds into the State General Fund. For Johns Hopkins, House Bill 935 reduces the amount of Sellinger Funds we receive from the State of Maryland by 3.1% in Fiscal Year 2003. This reduction will also impact our Fiscal Year 2004 funds level funding it consistent with the Fiscal Year 2003 level. BRFA has been introduced by the Governor in an effort to balance the Fiscal Year 2003 budget due to a decrease in projected revenues.

Effective Date: June 1, 2003

For more information, please contact: Bret Schreiber


SB0533     State Debt - Enabling Acts - Goal for Minority Business Enterprise Participation
This bill requires that before any issuance of State general obligation bonds by the Board of Public Works, language needs to be included in the grant requiring grantees to attempt to use specified minority business enterprises for at least 25% of the State's investment in the project.

Effective Date: October 1, 2003

For more information, please contact: Bret Schreiber


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Economic Development

HB0486     Blighted Areas Redevelopment Fund
This bill creates the Blighted Areas Redevelopment Fund for the purpose of eradicating blight caused by abandoned buildings. Grants will be made to local jurisdictions to utilize the fund which shall be appropriated through the State budget.

Effective Date: October 1, 2003

For more information, please contact: Bret Schreiber


HB0716     Maryland Economic Development Corporation - Condemnation of Property
This bill repeals a provision of law authorizing the Maryland Economic Development Authority to acquire real property or rights or easements by condemnation.

Effective Date: October 1, 2003

For more information, please contact: Bret Schreiber


SB0346     Baltimore City - Tax Sales - Abandoned Property
This bill alters provisions regarding proceedings to foreclose the right of redemption following a tax sale of abandoned property in Baltimore City; this provides the City discretion to request a deficiency judgment. The bill also prohibits a person from filing to reopen a judgment foreclosing rights of redemption with respect to abandoned property in Baltimore City based on inadequate notice.

Effective Date: July 1, 2003

For more information, please contact: Bret Schreiber


SB0526     Economic Development Loans or Grants - Minority Business Enterprise Procurement Goals
This bill requires that a recipient of an economic development loan or grant awarded by a public or quasi-public State agency, comply with specified minority business enterprise procurement goals. It requires that where applicable, the minority business enterprise procurement goals be included in the agreement between the loan or grant recipient and the public or quasi-public State agency that is awarding the loan or grant.

Effective Date: October 1, 2003

For more information, please contact: Bret Schreiber


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General Education

HB0307     Education - Gifted and Talented Students
This bill requires each local board of education to develop and implement identification procedures, services, and professional development activities, for gifted and talented education programs that meet nationally accepted research-based standards endorsed by the State Board of Education (SBE). State funding for gifted and talented education programs must be included in the State budget as part of the education foundation formula. The bill also alters the current definition of gifted and talented students to conform to federal standards.

Effective Date: October 1, 2003

For more information, please contact: Bret Schreiber


HB0635     Education - Early Childhood Educational and Developmental Programs
This bill authorizes early childhood educational and developmental programs to enter agreements to promote early childhood educational and development programs. The purpose is to bring together these programs in the State to collaborate and develop a plan to provide information to a parent or guardian of indigent or at-risk children. The bill also requires the Governor to require funding in the State budget for this program.

Effective Date: October 1, 2003

For more information, please contact: Bret Schreiber


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General Health Care

HB0478     Money Follows the Individual Fund
This bill establishes a Money Follows the Individual Fund to ensure that when an individual leaves a nursing facility under a home-and community-based services waiver, the net average cost of serving the individual in the nursing facility follows the individual to the home- or community-based service to cover the costs of the individual's care.

The Department of Health is required to adopt regulations to establish a process to determine the net average cost of serving an individual in a nursing facility, and for the management and use of the money.

Effective Date: July 1, 2003

For more information, please contact: Sheila Higdon


SB0345     Alcohol and Drug Abuse Administration - Designation of Nonprofit and Quasi-Governmental Entities by Local Health Departments
This bill would allow local health department to designate a nonprofit or quasi-governmental entity to receive funds from the Alcohol and Drug Abuse Administration to plan, manage, monitor, and disburse funds to substance abuse prevention and treatment programs. The Administration will disburse the funds directly to the designee and the health departments will have the authority to revoke the designation at any time.

Effective Date: October 1, 2003

For more information, please contact: Nicole Xander


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Health Care Facilities

HB0672     Maryland Fire and Emergency Services Support Fund - Moving Violations - Surcharge
This bill creates the Fire and Emergency Services Support Fund to be supported by a $20 surcharge on moving violations. The fund will provide financial support to the Low Interest Revolving Loan Fund for the first year of operation, or until the fund receives $20 million, whichever occurs first. Thereafter, the Fire and Emergency Services Support Fund will divide as follows:

1. one-sixth will be provided to the Maryland Emergency Medical Service System Fund
2. one-sixth to be used for the Traumatic Brain Injury Rehabilitation Fund
3. one-third to Senator William H. Amoss Fire, Rescue, and Ambulance Fund
4. one-third to the following trauma centers
a. The Johns Hopkins Hospital Health System Trauma Centers
b. Pediatric Trauma Center at the Children's National Medical Center
c. Prince George's Hospital Center
d. Sinai Hospital of Baltimore
e. Suburban Hospital
f. Washington County Hospital
g. Peninsula Regional Medical Center
h. Western Maryland Health System Memorial Hospital

Expenditures from the fund shall be made in accordance with the State budget.

Effective Date: October 1, 2003

For more information, please contact: Jim Kaufman


HB0674     Health - Maryland Trauma Center Services Fund - Establishment
This bill creates the Maryland Trauma Center Service Fund to be administered by the Maryland Health Care Commission. The fund, which is a special non-lapsing fund, is designed to provide financial support to the Primary Adult Resource Center, a Level I, II, or III trauma center, or a pediatric trauma center for documented costs associated with physician uncompensated care and on-call physician coverage. The fund will be supported with a minimum of a $15 million appropriation from the State General Fund beginning in FY 2004.

The Maryland Health Care Commission (MHCC), Health Services Cost Review Commission (HSCRC), and the Maryland Institute for Emergency Medical Services Systems (MIEMSS) will create a six member (2 members from each organization listed above) selection board. The board will review proposals to the fund to support trauma centers.

The bill also requires a report be submitted annually to the Governor and General Assembly on the amount of money in the fund, the amount requested for eligible physicians and trauma centers, and any recommendations for altering the manner in which trauma physicians uncompensated care costs and on-call costs are reimbursed.

Effective Date: July 1, 2003

For more information, please contact: Jim Kaufman


HB0773     Emergency Medical Services Board - Inter-Facility Helicopter Transport
The bill requires that on or before January 1, 2004 the EMS Board adopt regulations regarding the intern-facility helicopter transport of patients by licensed private helicopter carriers. The regulations shall specify that transfers are to be conducted by a licensed private helicopter and the limited circumstances under which a Maryland State Police Medivac helicopter may provide the transfer.

Effective Date: July 1, 2003

For more information, please contact: Jim Kaufman


HB0884     Work, Not Welfare, and Qualifying Employees with Disabilities Tax Credits
This bill extends the sunset provision for tax credits to employers that hire qualified employment opportunity employees or qualifying individuals with disabilities.

Effective Date: July 1, 2003

For more information, please contact: Kate Bishop


SB0543     Short-Term Disability for Working Families Act
This bill provides limited income support for participating employees and employers for short-term disability coverage. The bill sets terms for disqualifying an employee from the benefit, the duties of the Commission, and the duties of the employer. Benefits are payable for no longer than twelve weeks, starting within two weeks of filing for the benefit, and payments should equal 55% of the employee's salary or wage. The benefit is funded by an employee premium, the rate for which is set by the Commission. Employee premiums are channeled into a Short-Term Disability for Working Families Fund, a continues fund administered by the Commission. It is important to note that the State, the Commission, and the employer are not liable for claims that exceed the amount that is available from the fund, so the act is not creating an entitlement. Participating employers would be required to submit period reports on benefit activity and covered employee demographics and employee records would be open for inspection by the Commission.

Effective Date: January 1, 2004

For more information, please contact: Kate Bishop


SB0549     Public Safety - 9-1-1 Emergency Telephone Service
This bill seeks to implement Phase II wireless enhanced 9-1-1(E-911), a system that allows any Public Safety Answering Point to trace the phone number of a wireless call. Besides giving a deadline of July 1, 2004, for an implementation plan for Phase II E-911, the bill would require the board to submit an evaluation of the cost and fee structure of E-911 deployment by December 31, 2006, though the board may require an independent audit of collections and fee remissions by telephone companies or 9-1-1 carriers annually, and must report annually to the Governor, the Secretary, and the Legislative Policy Committee.

E-911 installation, enhancement, maintenance, and operation will be funded by the state-imposed 9-1-1 fee and any additional fees authorized by a county. The current state-implied 9-1-1 fee is 10 cents per month and is remitted from the telephone company to the Comptroller to be compiled in the 9-1-1 trust fund. Any additional charge for 9-1-1 operations can be instituted by a county, but cannot exceed 50 cents per month for "all current bills rendered for switched local exchange access service." This bill would also increase the allowable charge to 25 cents per month from the state and 75 cents from the county.

Effective Date: October 1, 2003

For more information, please contact: Kate Bishop


SB0639     Emergency Telephone System - Wireless Enhanced 911 Service
This bill primarily clarifies the inclusion of Commercial Mobile Radio Service (CMRS) providers and subscribers within the current statute, and calls for an implementation plan for wireless enhanced 911 (WE-911)

Unlike Senate Bill 549, this bill would leave the maximum county-assessed fee at 50 cents, but would apply the fee to individual telephone numbers rather than bills rendered. The 9-1-1 fee would be defined as 10 cents per month for switched local exchange access services and 35 cents for CMRS subscribers, with the caveat that the fee "may not be imposed on more than 50 CMRS exchange lines, including PBX trunks and Centrex lines per customer billing account."

Effective Date: July 1, 2003

For more information, please contact: Kate Bishop


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Health Care Practitioners

HB0343     Hospitals - HIV Testing - Health Care Providers
This bill would allow the designated infectious disease/communicable disease officer at hospitals to order an HIV test of blood samples already obtained, and blood samples or other body fluids collected for the purpose of HIV testing. The following criteria must be met in order to test:

1) An exposure has occurred between a patient and health care provider that (in accordance to Centers for Disease Control recommendations) would warrant recommending or offering chemo prophylaxis treatment,
2) Informed consent was sought and the patient refused,
3) The health care provider involved has given prompt notice of the exposure,
4) The health care provider has given informed consent and has submitted a blood sample for HIV testing, and
5) The designated infectious disease/communicable disease officer has made a determination that the HIV test would be helpful in managing the risk of disease and health outcome of the health care provider.

The designated infectious disease/communicable disease officer shall directly notify the patient of the results and, to the extent possible, in a manner that will protect confidentiality of the health care provider and the patient. If the results are positive, appropriate counseling and treatment recommendations shall be provided or arranged for the provider and the patient.

Any physician order for an HIV test or the results may not be documented in the medical record of the patient or health care provider. The medical records are confidential, and not discoverable or admissible in any criminal, civil, or administrative action.

Hospitals shall maintain a separate confidential record or incident report for the tests and adopt procedures for confidential testing. Any costs incurred in performing an HIV test shall be paid by the hospital. A health care provider, hospital, or hospital designee acting in good faith to provide notification, or maintain the confidentiality of the results, may not be held liable in any cause of action related to a breach of patient or health care provider confidentiality.

Effective Date: October 1, 2003

For more information, please contact: Nicole Xander


HB0724     Health Insurance Carriers and Health Maintenance Organizations - Mental Health Providers - Cultural Characteristics
This bill requires the standards of quality of care that a Health Maintenance Organization (HMO) provides mental health services to an enrollee, must provide access to a provider whose cultural characteristics reflect those of the member. The bil also amends the definition of covered service so that it includes a health care provider who is not under written contract with the HMO.

Effective Date: October 1, 2003

For more information, please contact: Sheila Higdon


HB0788     Maryland Health Care Commission - Hospital-Based Health Care Practitioner Payment System
The proposal charges the Maryland Health Care Commission to develop a payment system for hospital-based health care practitioners by January 1, 2005. The bill defines "hospital-based health care practitioners" as emergency room physicians, radiologists, anesthesiologists, and any other provider who practices predominately in a hospital.

The payment system is to establish a uniform system for hospital based practitioner's reimbursement and the methodology is to consider:

1. costs of professional liability insurance
2. costs of complying with all regulatory requirements
3. reasonable costs for bad debt and charity care
4. difference in experience or expertise among hospital based health care providers to include recognition of relative preeminence in the field or specialty and the cost education and continuing education
5. geographic variations
6. reasonable staff and office expenses
7. costs associated with a faculty practice plan affiliated with a teaching hospital
8. any other factors considered appropriate by the Commission

Annually, the bill requires the Commission to publish total reimbursement for all health care services delivered by a hospital based health care practitioner, total reimbursement for each hospital-based health care specialty, and total reimbursement for each code.

The bill states that the section may not have the effect of impairing an HMO from contracting with a hospital-based practitioner under mutually agreed upon terms and conditions. Furthermore, a professional organization or society that is acting in good faith to further the intent of the bill are not subject to criminal or civil liability under Maryland's Anti-Trust Act for these activities. Finally, the bill requires the Commission to seek a waiver from the Medicare program and report on the status of the waiver application before January 1, 2004.

Effective Date: July 1, 2003

For more information, please contact: Jim Kaufman


HB0883     Health Care Disparities Program - Required Education for Practitioners and Coordination of Services
This bill requires institutions of higher education in the State that offer courses necessary for the licensing of health care professionals to include in the curriculum, or offer special seminars that address the identification and elimination of health care services disparities or minority populations. Such courses and seminars are to address the issues of health care services disparities of minority populations identified by race, ethnicity, poverty and gender. Pertinent institutions of higher education will be required to develop such courses or seminars by June 30, 2004; and, shall implement the courses or seminars by June 30, 2006.

In addition, the bill requires a licensed and practicing health care professional to take a course or attend a seminar that addresses health care services disparities of minority populations as a continuing education course on or before October 1, 2004.

The bill requires DHMH to develop and implement a coordinated program to reduce health care disparities by September 30, 2004 in consultation with:

*Med Chi
*Monumental City Medical Society
*Nurse Practitioners Association of Maryland
*Maryland Academy of Physician Assistants
*Mental Hygiene Administration
*Center for Poverty Solutions

DHMH will be required to submit a report to the Governor and General Assembly by September 30 of each year on the implementation of a coordinated program delivery system.

The bill requires hospitals with CME programs to offer and require medical staff and health care practitioners to take a CME or continuing education unit course that addresses health care disparities of minority populations at least once each hear. The CME course will be required to comply with the criteria and guidelines set forth by Med Chi and Monumental City Medical Society's Steering Committees.

Effective Date: October 1, 2003

For more information, please contact: Sheila Higdon


SB0224     Board of Physician Quality Assurance - Office-Based, Medication-Assisted Opioid Addiction Therapy
This bill requires the State Board of Physician Quality Assurance (BPQA) to establish a process to train and certify physicians applying for a waiver (from the federal Substance Abuse and Mental Health Services Administration (SAMHSA)) to practice office based, medication-assisted opioid addiction therapy by November 1, 2003. In doing so, the BPQA shall consult Model Policy Guidelines for Opioid Addiction Treatment in the Medical Office and adopt regulations regarding experience or training qualifications.

The Board is also required to educate physicians about the federal law authorizing the practice of office based medication-assisted opioid addiction therapy, inform physicians about the availability of training and certification, encourage family practitioners and primary care providers.

Effective Date: October 1, 2003

For more information, please contact: Nicole Xander


SB0354     Public Health - Licensed Pharmacists - Dispensing Emergency Contraception
This bill would allow a licensed pharmacist to dispense emergency contraceptives if the pharmacist has a collaborative practice arrangement with a licensed physician to dispense the drugs. The arrangement must be approved by the Board of Pharmacy and the Board of Physician Quality Assurance (BPQA) and would need to be renewed every two years. Regulations would be adopted by the Board of Pharmacy, and the BPQA that would define the criteria needed for the arrangement and guidelines concerning communication, documentation, and other relevant factors.

Effective Date: October 1, 2003

For more information, please contact: Nicole Xander


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Health Insurance

HB0364     Health Insurance - Noncontracting Providers - Reimbursement Rate Disclosure
This bill requires Health Maintenance Organizations (HMO), non-profit health service plans, or fraternal benefit society to submit to the Insurance Commissioner, the actual dollar amount of each Current Procedural Terminology (CPT) code rate payment for out-of-network services by December 31, of each year. Any rate payment changes must be submitted with 30 days of the change.

The CPT rate payment information must be provided to prospective enrollees, current enrollees, and providers not under contract. By February 1, of each year, the Insurance Commissioner shall compile the schedules and issue an annual report to the Governor and General Assembly.

The Commissioner may not approve an alteration of the amount of a CPT code or CPT code procedure, if based on any cost to an entity that is a result of complying with this legislation. Also, an entity that is providing, or has provided or offered enrollee coverage for any out-of-network services at any time up to one year before the enactment of this bill may not:

1) file an application for a proposed rate increase based on any cost resulting from complying with the bill, and
2) alter the dollar amount of the CPT code rate payment for, or the CPT code rate procedures included in, any offered out-of-network service coverage without prior approval of the Commissioner.

Effective Date: July 1, 2003

For more information, please contact: Nicole Xander


HB0428     Health Insurance - Kidney Dialysis Services - Coinsurance Payments
This bill requires insurers, nonprofit health service plans, and Health Maintenance Organizations (HMOs), to provide coverage for kidney dialysis services provided in a kidney dialysis center to an individual with chronic kidney disease. Such a center may only charge or collect from an insured a single co-insurance payment amount in a 3-month period.

Effective Date: October 1, 2003

For more information, please contact: Sheila Higdon


HB0569     Health Insurance - Payment to Providers for Colorectal Screenings
The bill requires insurers, including nonprofit health service plans and Health Maintenance Organizations (HMOs), to pay a rate no less than 140% of Medicare for colorectal cancer screening.

Effective Date: October 1, 2003

For more information, please contact: Sheila Higdon


HB0597     Health Insurance >- Mandated Benefits - Exclusion from Policies
This bill authorizes insurers and nonprofit health service plans to offer a limited benefits policy that excludes mandated health benefits from coverage under the policy. Limited benefits policies may not exceed 10% of the total health benefit policies issued by the insurer or nonprofit health service plan. Before issuing a limited benefits policy, an insurer must provide a written statement to the prospective policy holder disclosing that mandated health insurance benefits are not covered. A signed statement must be obtained from the prospective policy holder verifying that they have been informed of the limits of the policy.

Effective Date: October 1, 2003

For more information, please contact: Sheila Higdon


HB0605     Maryland Health Care Commission - Evaluation of Mandated Health Insurance Services
This bill repeals the mandate that the Maryland Health Care Commission (MHCC) must determine the cost of mandated health insurance service, and evaluate the financial impact of each mandated benefit. Instead the MHCC must evaluate existing mandated health insurance services, and make recommendations to the General Assembly regarding decision-making criteria for reducing the number of mandates or the extent of coverage.

By January 1, 2004, and every 4 years thereafter, the MHCC must report on their evaluation of the following to the General Assembly:

*assessment of the full cost of each existing mandated benefit as a percentage of the State's average annual wage and of premiums for the individual and group health insurance market
*assessment of the degree to which mandated benefits are covered in self-funded plans
*comparison of mandated benefits provided by the State to those provided in Delaware, District of Columbia, Pennsylvania, and Virginia

Effective Date: July 1, 2003

For more information, please contact: Sheila Higdon


HB0636     Insurance Premiums Tax - Health Maintenance Organizations
This bill subjects Health Maintenance Organizations (HMOs) to the State's insurance premium tax for all polices, contracts, and plans issued, written, or delivered on or after July 1, 2003.

Effective Date: July 1, 2003

For more information, please contact: Jim Kaufman


HB0656     Health Maintenance Organizations - Definition of Covered Service
This bill amends the definition of a service covered by a Health Maintenance Organization (HMO), so that it reverts to the previous definition that does not include providers who are not participating in the HMO plan.

Effective Date: October 1, 2003

For more information, please contact: Sheila Higdon


HB0657     Preferred Provider Organizations - Payments to Nonpreferred Providers - Emergency Services
This bill adds a provision to existing statute requiring that preferred provider insurers pay a nonpreferred provider for a covered emergency service in a hospital emergency room, and that they pay at the rate of 125% of Medicare.

Effective Date: October 1, 2003

For more information, please contact: Sheila Higdon


HB0670     Health Insurance Coverage for Ovarian Cancer Screening
This bill requires insurers, nonprofit health service plans and Health Maintenance Organizations (HMOs) to provide coverage for the expenses incurred in a CA-125 serum tumor marker test for Ovarian Cancer screening.

Effective Date: October 1, 2003

For more information, please contact: Sheila Higdon


HB0700     Health Insurance - Private Review Agents - Certification
This bill authorizes the Insurance Commissioner to consider an applicant as having met certification requirements to become a private review agent if:

*the applicant has obtained utilization management accreditation from an approved accrediting organization as determined by the Commissioner
*the approved organization has requirements that meet or exceed requirements
*the applicant meets or exceeds requirements.

The bill also requires the Commissioner to make available to the public on request, a report of an approved accrediting organization used by the Commissioner as evidence that the private review applicant has met the requirements to become a private review agent.

Effective Date: October 1, 2003

For more information, please contact: Sheila Higdon


HB0760     Insurance Premiums Tax - Health Maintenance Organizations - Funding for Outpatient Mental Health Treatment
The bill subjects Health Maintenance Organizations (HMOs) to the State's insurance premium tax for all polices, contracts, and plans issued, written, or delivered on or after July 1, 2003.

The additional revenue generated from the HMO premium tax is to place into the Outpatient Mental Health Treatment Fund, which is a special non-lapsing fund. The fund is to be provided to the Maryland Mental Hygiene Administration to provide reimbursement for outpatient mental health treatment.

Effective Date: July 1, 2003

For more information, please contact: Jim Kaufman


HB0765     Task Force on the CareFirst Mission
The bill creates a 13-member task force to develop a plan to re-articulate the mission of CareFirst of Maryland as a non-profit health service plan. The mission of CareFirst is described as: (1) provides individuals and businesses with the most affordable and accessible health insurance possible, and (2) recognizes a responsibility to contribute to the improvement of the overall health status of Maryland residents.

The task force shall be appointed by the Governor and staffed by the Maryland Insurance Administration and the Maryland Health Care Commission. The task force will include:

1. a member of the Senate
2. a member of the House of Delegates
3. the Attorney General
4. Secretary of Health and Mental Hygiene
5. Insurance Commissioner
6. Executive Director of the Maryland Health Care Commission
7. Representative of the Maryland Hospital Association
8. Representative of the Medical and Chirurgical Society of Maryland
9. Representative of the Maryland Health Care Foundation

The Governor shall appoint the Chairman and the members of the task force are not eligible for any compensation beyond expenses.

Effective Date: Emergency Measure (effective upon enactment)

For more information, please contact: Jim Kaufman


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Higher Education

HB0253     Higher Education - Resident Tuition Charges - Immigrant Students
This bill establishes that individuals, other than specified nonresident aliens, shall be exempt from paying nonresident tuition at public institutions of higher education.

Effective Date: July 1, 2003

For more information, please contact: Bret Schreiber


HB0484     Higher Education - Janet L. Hoffman Loan Assistance Repayment Program - Eligibility Criteria
This bill repeals the requirement that an individual receive a graduate, professional, or undergraduate degree from a college or university in the State to be eligible to receive repayment assistance from the Janet L. Hoffman Loan Assistance Repayment Program.

Effective Date: October 1, 2003

For more information, please contact: Bret Schreiber


HB0568     Higher Education - Senatorial and Delegate Scholarship Programs
This bill authorizes Senators and Delegates to award scholarship funds to public institutions of higher education in Maryland, or an academic program of a public institution of higher education in Maryland. The bill requires the public higher education institutions to award the scholarships to residents of Maryland.

Effective Date: October 1, 2003

For more information, please contact: Bret Schreiber


HB0594     Management of Institutional Funds - Appropriations from Endowment Funds
This bill modifies the Uniform Management of Institutional Funds Act (UMIFA) to authorize a governing board of an institutional fund to appropriate annually a fixed percentage of the historic dollar value of an endowment fund. This action would be acceptable either with written consent of the donor, by circuit court order when the donor is unable to consent due to death, disability, or unavailability, or is impossible to identify. A circuit court is authorized to issue an order allowing a governing board to appropriate not more than 4% of the historic dollar value of a fund.

The bill applies to each endowment fund existing on or after the effective date.

Effective Date: October 1, 2003

For more information, please contact: Bret Schreiber


HB0754     Higher Education - Community Colleges - State Funding
This bill increases State funding for community colleges in fiscal year 2005, and each fiscal year thereafter. Last year, the Cade formula for community colleges was reduced by the Legislature. The bill also reestablishes the formula to the full funding level originally established by the Legislature prior to last year's reductions.

Effective Date: July 1, 2003

For more information, please contact: Bret Schreiber


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Medicaid

HB0762     Medicaid Modernization Act of 2003
The bill establishes the Primary Adult Care Network, that is designed to provide a health benefit package of primary and preventative health care services for adults. The program targets adults in families with an annual household income below 150% of the federal poverty level and who is uninsured. The bill allows the program to charge up to a $50 enrollment fee and cost sharing requirements up to $1,000 annually.

The program may enter into partnerships with community entities to provide additional coverage. The program will be funded through General Funds included in the budget and any federal matching funds.

The bill requires the Department of Health and Mental Hygiene to seek a waiver from the Centers for Medicare and Medicaid Services, and the waiver application is to address how the Primary Adult Care Network will be merged with the Maryland Primary Care Program.

The program will take effect until the waiver is approved by the federal government and if the waiver requested is denied, the bill is null and void.

Effective Date: July 1, 2003

For more information, please contact: Jim Kaufman


HB0770     Department of Health and Mental Hygiene - Medical Assistance - Day Care Providers
The bill requires the Department of Health and Mental Hygiene (DHMH) to provide comprehensive medical and other health care services offered through the Medical Assistance Program to day care providers who:

1. registered by the Department of Human Resources
2. has received child care subsides from the purpose of care program of at least $1,800 from the Department of Human Resources for a period of 6 consecutive months prior to application
3. does not have any other health insurance coverage

The day care provider and the minor children who reside with the provider may receive services through the program for a period of 6 months, and the edibility of the provider will be reviewed in the 5th month.

Effective Date: July 1, 2003

For more information, please contact: Jim Kaufman


HB0793     Medical Assistance Reimbursement Rate Commission
The bill creates the Medical Assistance Reimbursement Rate Commission as an independent unit of the Department of Health and Mental Hygiene. The Commission will consist of 11 members appointed by the Governor with the advice and consent of the Senate. Of the 11 members, no more than 5 members may have a connection with the management of an entity that receives payment from the Medical Assistance Program. The Commission is required to meet at least six times annually, members shall serve a five year term, and may not receive compensation other than expenses.

By January 1, 2005, the Commission shall establish rates for the Medicaid Managed Care Organizations and health care services provided under the Medical Assistance Program. The rates are to consider the methodology used in calculating the Resource-Based Relative Value Scale established for the Medicare program, costs reasonably related to provide health care services, rates paid by other payers for similar services, and an annual inflationary adjustment. The capitation rates are to be actuarially adjusted to the benefits provided and reflect the relative rise assumed by the Managed Care Organizations.

Beginning in FY 2006, the Governor is to include in the budget sufficient funds to support the rates established by the Commission.

Effective Date: October 1, 2003

For more information, please contact: Jim Kaufman


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Mental Health

HB0433     Task Force on the Needs of Persons with Co-Occurring Mental Health and Substance Abuse Disorders
This bill establishes a Task Force on the Needs of Persons with Co-Occurring Mental Health and Substance Abuse Disorders, and charges the Task Force to:

1) identify and recommend ways to provide and deliver comprehensive, integrated, cost-effective services
2) identify and recommend methods of funding through public and private sources
3) recommend short and long term residents services including number of units needed and a timeline for providing residential services
4) recommend feasibility of the Mental Hygiene Administration and the Alcohol and Drug Abuse Administration cross-training mental health and addiction counselors
5) recommend necessary legislation to implement Task Force recommendations

Membership is to be appointed and the Governor and will include 1 representative each from the following: Mental Hygiene Administration; Alcohol and Drug Abuse Administration; Department of Human Resources; Department of Social Services; Department of Rehabilitative Services; AIDS Administration; Department of Juvenile Justice; Faith-Based Community Providers; Department of Housing and Community Development; Department of Public Safety and Correctional Services; State court judge; Public Defender's Office; consumer of co-occurring disorder services or who has a family member who uses such services; Co-Occurring Disorders Workgroup of the National Council on Alcoholism and Drug Dependence, Inc. - Maryland and Mental Health Association of Maryland; Maryland Psychiatric Society; and Maryland Nurses Association; and, 2 consumers.

The bill also requires the Mental Hygiene Administration to conduct or commission a study on the relationship between substance abuse and mental illness among counties in Maryland. They are to report to the Governor, the Maryland Legislative Black Caucus, the Senate Education, Health and Environmental Affairs Committee and the House Health and Government Operations Committee on or before July 1, 2004.

Effective Date: October 1, 2003

For more information, please contact: Sheila Higdon


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Miscellaneous

HB0424     Baltimore City - Condemnation - Immediate Possession and Title - Distressed Property
This bill authorizes proceedings for condemnation and immediate taking of properties in Baltimore City. The bill also grants exclusive original civil jurisdiction of a specified proceeding to the District Court.

Effective Date: October 1, 2003

For more information, please contact: Bret Schreiber


HB0467     Community Associations - Civil Liability
This bill limits the civil liability of community associations and their agents under specified circumstances. The bill authorizes community associations to register with the Secretary of State.

Effective Date: October 1, 2003

For more information, please contact: Bret Schreiber


SB0080     Procurement - Prevailing Wage - School Construction
This bill increases 75% or more the percentage of State money that must be used in an elementary or secondary school construction project before the Prevailing Wage Law applies.

Effective Date: July 1, 2003

For more information, please contact: Bret Schreiber


SB0402     Maryland Uniform Disclaimer of Property Interests Act
This bill provides the authority to make disclaimers, the interests and time when they are effective, and the effect on the distribution of the disclaimed property interests. An heir in an intestate estate, a devisee of a will, a beneficiary of a trust or other nontestamentary transfer, a joint tenant in a joint tenancy with right of survivorship, a trustee of a trust, or any other fiduciary acting in a fiduciary capacity may disclaim a property interest under the bill.

Any interest that may come to the person entitled to disclaim, may be disclaimed, including a distribution of property in a probate estate, property due under a trust instrument, the property rights of a joint tenant at the death of another joint tenant, or the beneficiary rights following any other kind of nontestamentary or nonprobate transfer at death. The disclaimer, when effective, treats the interest as if it had never been granted.

The bill does not express any time limits for disclaiming interests after which the grantor may no longer revoke the grant of an interest.

Effective Date: October 1, 2003

For more information, please contact: Bret Schreiber


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Nursing

HB0639     Nurse Registry - Covered Employment - Unemployment Insurance and Workers' Compensation
According to this legislation, a health care practitioner providing home care or health care services through a referral by a licensed nurse registry is work that is not covered employment if:

1) the practitioner has the option of rejecting or accepting the referral,
2) the practitioner is free from control and direction in setting personal work hours, rate of compensation, and the level of service and standard of care to be provided by the practitioner,
3) the referral is made to the first available practitioner who meets the criteria established by the institution,
4) the health care practitioner is paid by the individual institution or other entity and not by the licensed nurse registry,
5) the practitioner and licensed nurse registry enter into a written agreement that clearly and conspicuously provides (in at least 14 point type) that
a) it is the health care practitioner's responsibility to pay State and Federal taxes and contribute to social security for self-employment, and
b) the practitioner is not a covered employee through the licensed nurse registry
6) the practitioner has an ongoing right to accept referrals from other agencies or to otherwise make the practitioner's services available to the general public.

Effective Date: October 1, 2003

For more information, please contact: Nicole Xander


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Pharmaceuticals

HB0548     Health Occupations - Gifts from Pharmaceutical Manufacturers or Pharmaceutical Marketers - Prohibited
This bill would prohibit physicians and nurse practitioners from accepting gifts greater than $50 from a pharmaceutical manufacturing company or a pharmaceutical marketer. This would not apply to samples and literature pertaining to pharmaceutical products.

Effective Date: October 1, 2003

For more information, please contact: Nicole Xander


HB0684     Pharmacists and Pharmacies - Practice - Advice of Generic Drug Option
This bill would require employees of a pharmacy or pharmacist to advise consumers of the availability of a generically equivalent drug and the cost difference as compared to the brand name drug.

Effective Date: October 1, 2003

For more information, please contact: Nicole Xander


HB0725     Senior Citizen Prescription Medicine Relief Act
As a condition of participation in the Medical Assistance Program (MAP), pharmacies will be required to charge Medicare beneficiaries a price that does not exceed the Medicaid rate, and includes an amount to cover electronic transmission charges. This would not apply to over-the-counter medications or compounded prescription.

The Department of Health and Mental Hygiene (DHMH) shall provide a mechanism to calculate and transmit the price to the pharmacy, but may not apply any program drug utilization review processes and will monitor pharmacy compliance.

Also, by December 1, of each year, DHMH must report to the General Assembly on pharmacy compliance including information on any pharmacy that discontinues participation in the Medical Assistance Program and reasons for the discontinuance. If prescription drugs are added to the benefits under the federal Medicare program, the Department of Legislative Services shall report back to the General Assembly, who in turn, will evaluate the need to continue this discount program.

DHMH will also conduct a study of the adequacy of the reimbursement rates for the Medical Assistance Program including the cost of providing prescription drugs and services.

Effective Date: October 1, 2003

For more information, please contact: Nicole Xander


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Research

HB0482     Stem Cell Research - Donation of Certain Tissue for Research Purposes
The bill preamble states that an estimated 128 million Americans suffer from crippling economic and psychological burdens of chronic, degenerative, and acute diseases. The costs of treatment and lost productivity due to these diseases costs hundreds of billions of dollars every year. Stem cell research offers immense promise and must balance ethical and medical considerations. Finally, Maryland's critical mass of biotechnology companies ranks third nationally. The University of Maryland, and The Johns Hopkins University are involved in stem cell research with projects representing a combined total of $5 million in public and private funding.

The bill states that the public policy of the State of Maryland that research involving the derivation and use of human embryonic stem cells, human embryonic germ cells, and human adult stem cells from any source shall be allowed. The research involving these cells must give full consideration to the ethical and medical implications of this research. Research involving derivation and use of these cells must be reviewed by an institutional review board.

The bill also prohibits a person from purchasing or selling, for valuable consideration, embryonic or cadaveric fetal tissue for research purposes. However, the bill clarifies that "valuable consideration" does not include a reasonable payment for removal, processing, disposal, preservation, quality control, storage, transplantation, or implantation.

Effective Date: October 1, 2003

For more information, please contact: Jim Kaufman


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Tobacco Settlement

SB0603     Tobacco Product Manufacturers - Nonparticipating Manufacturers - Escrow Requirements
This bill requires tobacco product manufacturers whose cigarettes are sold in the State to periodically submit certifications, reports, and notices to the Comptroller and Attorney General. The Comptroller will be required to develop and make available a directory listing those tobacco product manufacturers. It also authorizes the Comptroller to adopt regulations to assure that tobacco product manufacturers are in compliance with the Escrow Act that pertains to the Master Settlement Fund. If a court determines that there has been a violation, any profits, gain, gross receipts, or other benefit from the violation to be paid to the State Treasurer shall be deposited into the Cigarette Restitution Fund.

The bill also requires that the Governor appropriate 0.15% of the CRF for enforcement of the escrow requirements.

Effective Date: June 1, 2003

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


Sheila Higdon shigdon@jhmi.edu
Jim Kaufman jkaufma@jhmi.edu
Bret Schreiber bschreiber@jhu.edu
Nicole Xander nxander@jhmi.edu
Kate Bishop sbishop2@jhu.edu
Jason Spangler jspangle@jhsph.edu
Beth Chaney greltemp@jhmi.edu
Lynette Floyd lfloyd@jhmi.edu
Mickey Giesler mgeisler@jhu.edu

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Office of Government, Community and Public Affairs.
Last updated 03feb21