Johns Hopkins Institutions



Legislative Hotline

2003 SESSION OF THE
MARYLAND GENERAL ASSEMBLY



Volume 11, Number 8 February 26, 2003


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

OPEN HEART LEGISLATION
CIGARETTE RESTITUTION FUND TESTIMONY


BILLS INTRODUCED
STAFF CONTACT INFORMATION

OPEN HEART LEGISLATION

House Bill 236 - Cardiac Services - Licensing and House Bill 828 - Hospitals - Certificate of Need - Open Heart Surgery were heard before the House Health and Government Operations Committee on February 21, 2003. The hearing began with the Maryland Health Care Commission (MHCC) providing a background on Certificate of Need (CON) and the purpose of the State Health Plan. Barbara McLean, Executive Director, explained that the Advisory Committee on Outcome Assessment in Cardiology was addressing issues that include the co-location of open-heart surgery and angioplasty, outcome data, and interhospital transports.

Regarding HB 236 Larry Merlis, President & CEO of GBMC, and John Logan, Chair of Emergency Medicine at GBMC, testified in support of the bill. They expressed the belief that large medical centers should have a full range of services including open-heart surgery. However, it was stated that CON is important in many circumstances including organ transplants and burns.

Individuals representing St. Agnes Hospital and Anne Arundel Medical Center testified in support of HB 828. During the testimony, it was also stated that Maryland has higher mortality rates than states without CON and therefore, something must be wrong with the current system. St. Agnes presented a video dramatization of someone presenting with a heart attack in the emergency room that was not able to be treated and while being transferred to another hospital, got stuck in traffic. The video implied that the patient died because the hospital was unable to perform open-heart surgery.

The MHCC testified in opposition to HB 236 and HB 828. Barbara McLean testified that eliminating the CON process would negatively impact access, cost, and quality of care. She explained that many states are strengthening the CON process and without planning, you would see a proliferation of low volume programs. McLean also testified that the Commission would make a determination regarding primary angioplasty this May, and that it would likely become a permanent waiver through regulations. It was also explained that the Commission would be addressing elective angioplasty and study the safety and efficacy.

A panel from hospitals that currently have a CON testified in opposition to both bills. The panel included Warren Green, President & CEO of Lifebridge; Luis Mispireta, Chief Cardiac Surgery at Union Memorial Hospital, Charles Cummings of Sinai; Diane Johnson, R.N. Chief Nursing Officer at Sinai, and Dominic Seraphin of St. Joseph's. The panel testified that there is a correlation between volume and quality and the need for open-heart surgery is declining. They stated that they have studies showing that mortality rates were actually lower in states that have a CON.

Many questions were raised surrounding the issue of elective angioplasty without open heart backup including the risks associated with elective angioplasty, and the number of states that provide elective angioplasty without open heart back up. Delegates also questioned the minimum number needed to ensure quality programs and how elective angioplasty would impact costs for institutions already participating in the C-PORT program.

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CIGARETTE RESTITUTION FUND TESTIMONY

Drs. Martin Abeloff, John Groopman, and Jean Ford, testified before the House Appropriations Committee at the Cigarette Restitution Fund budget hearing. Testimony from the Department of Legislative Services' budget analyst, the Department of Health and Mental Hygiene and the University of Maryland was also heard.

The Hopkins team reported on the progress of the Public Health Grant, and the Cancer Research Grant supported by the Cigarette Restitution Fund Program. They provided the Committee members with documents demonstrating the success of the CRF program. The hearing went smoothly, with no recommendations from the analyst for any further budget cuts to the Johns Hopkins appropriations and no unexpected questions from legislators. The Governor has budgeted $4.59 million in FY2004, for Johns Hopkins from the Cigarette Restitution Fund, significantly less than the $15 million request. Efforts continue to increase the Johns Hopkins appropriations remain a priority despite the State's fiscal challenges.

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BILLS INTRODUCED
Bond Bills
General Health Care
Health Care Facilities
Health Care Practitioners
Health Insurance
Pharmaceuticals
Public Health
Tort Reform
Miscellaneous



BILLS INTRODUCED

Bond Bills

SB0667    Creation of a State Debt - St. Joseph Medical Center
This bill authorizes the creation of a State Debt in the amount of $435,000. The debt is to be used as a grant to the Board of Directors of St. Joseph Medical Center, for the renovation, expansion, repair, construction, and capital equipping of Phases 3 and 4 of the hospital's emergency services department, located in Towson.

Effective Date: June 1, 2003

For more information, please contact: Bret Schreiber


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General Health Care

HB0882    Maryland Breast Cancer Research Fund - Income Tax Checkoff
This bill establishes the Maryland Breast Cancer Research Fund within the Department of Health and Mental Hygiene (DHMH), to provide grants for breast cancer research. Breast cancer research in this bill is defined as research to develop and advance the understanding of breast cancer, and the techniques and modalities effective in the prevention, cure, screening and treatment of breast cancer. The Fund will be supported through a check off on the Maryland Tax return form, and will be applicable to all taxable years beginning after December 31, 2002. Individuals will be able to designate a portion of their refund for this purpose. Proceeds can be used to fund grants to eligible physicians, hospitals, laboratories, educational institutions, and other organizations and persons to conduct breast cancer research.

Effective Date: July 1, 2003

For more information, please contact: Sheila Higdon


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Health Care Facilities

HB0481    Health - In Vitro Services - Advance Directives for Disposition of Cryopreserved Eggs, Sperm, or Embryos
According to this bill, a health care provider or facility providing In Vitro or assisted reproductive services in which eggs, sperm, or embryos are to be cryopreserved for storage must require that an advance directive be completed for the disposition of the cryopreserved eggs, sperm, or embryos. The health care provider or facility may not be held liable for civil damages, and may not be subject to any criminal or disciplinary action for a disposition carried out in accordance with an advance directive.

The advance directive at a minimum, shall:

1) Be in writing & signed by:
* for cryopreserved eggs, the female donee,
* for cryopreserved sperm, the male donee, and
* for cryopreserved embryos, both male & female donees,
2) Include options for disposition in the event of death of a participating partner, divorce, or a decision of the partners to cease participating,
3) Include a provision requiring compliance with the policies & procedures required to notify the provider or facility of a request to change or execute an advance directive, and
4) If applicable, include an agreement requiring compliance with the policies & procedures to be followed in the event of nonpayment of storage fees.

Options for disposition may include:

1) Transfer of the eggs or embryos to the male partner if the female partner dies,
2) Transfer of the sperm or embryos to the female partner if the male partner dies,
3) Donation of eggs, sperm, or embryos to another individual or couple,
4) Donation for research,
5) Thawing, with no further action.

The advance directive must be submitted to the Department of Health and Mental Hygiene (DHMH) before a provider or facility may use it. DHMH must consult with the Department's Assistant Attorney General for the review of the advance directive to assure the following:

1) The rights and responsibilities, and duties of the parties are clear and legible,
2) The advance directive complies with federal and state laws,
3) The advance directive does not contain provisions that are unenforceable because of public policy.

Within 30 days of submission, DHMH shall notify the provider or facility of approval or disapproval. A decision to disapprove a provision of an advance directive must clearly state the grounds for disapproval.

Effective Date: October 1, 2003

For more information, please contact: Nicole Xander


HB0759    Advisory Committee to Study Expansion of the All-Payor System
This bill creates a 16-member committee to study expansion of the All-Payor system. The committee is to meet at least once a month and focus on system expansion as a means to reduce uncompensated care costs for the following:

1) Outpatient health care services provided at freestanding private psychiatric hospitals,
2) Pubic and private outpatient mental health clinics,
3) Urgent care centers.

The committee is to consider the effects of expanding the all-payor system on reducing uncompensated care, accessibility of health care services, and the impact on third party payors, including Medical Assistance.

The committee, which will elect a chairman, will be comprised of:

- 2 members of the Senate
- 2 members of the House of Delegates
- The Secretary of Health
- Executive Director of the Maryland Health Care Commission
- Executive Director of the Health Services Cost Review Commission
- The Maryland Insurance Commissioner
- A physician representative chosen by the Medical and Chirurgical Faculty of Maryland
- A hospital representative chosen by the Maryland Hospital Association
- A psychiatrist, chosen by the Maryland Psychiatric Society
- A representative of third party payors, chosen by the Governor
- A labor representative, chosen by the Governor
- A health care economist chosen by the Governor

Effective Date: July 1, 2003 (Sunset December 31, 2003)

For more information, please contact: Jim Kaufman


HB0780    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 House Bill 833, 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


HB0781    Catastrophic Health Emergency - Volunteer Health Care Provider - Workers' Compensation
This bill would bar any workers' compensation underwriter from denying any claim made by a hospital employee that is responding to a catastrophic health emergency as part of a volunteer or hospital-designated catastrophic health emergency response team. This bill was drafted by the Maryland Hospital Association (MHA) specifically in response to smallpox vaccinations.

Effective Date: October 1, 2003

For more information, please contact: Kate Bishop


HB0833    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 authorized 9-1-1 fee is 25 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 75 cents per month for "all current bills rendered for switched local exchange access service." This has been increased from 50 cents. This additional charge is also remitted to the trust fund.

Effective Date: October 1, 2003

For more information, please contact: Kate Bishop


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Health Care Practitioners

HB0974    Health Maintenance Organizations - Patient Access to Choice of Provider
This bill allows a Health Maintenance Organization (HMO) enrollee to select either a primary physician, or a nurse practitioner as their primary care provider. If the enrollee chooses a nurse practitioner, that health care professional must be at the same location as the nurse practitioner's collaborating physician, and the collaborating physician providing the continuing medical management as required. The bill states that the language is not intended to require an HMO to include nurse practitioners to the organization's provider panel.

Effective Date: October 1, 2003

For more information, please contact: Jim Kaufman


SB0646    Abortifacient Conscience Act
According to this legislation, a person may not be required to perform, participate in, or refer to any source for, any medical procedure that results in the destruction of a fertilized ovum. Currently, individuals are not required to perform or participate in procedures resulting in artificial insemination, sterilization, or termination of pregnancy.

Effective Date: October 1, 2003

For more information, please contact: Nicole Xander


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Health Insurance

SB0651    Health Insurance - Small Group Market - Health Reimbursement Arrangements
This bill requires the Maryland Health Care Commission (MHCC) to adopt regulations for the small group market that specifies a modified health benefit plan. The plan must qualify as a health reimbursement arrangement as provided by the Internal Revenue Service (IRS) and allowed under Internal Revenue Code, including a menu of deductibles that would include a deductible of at least $5,000.

Effective Date: October 1, 2003

For more information, please contact: Nicole Xander


SB0672    Health Insurance - Provider Panels - Lists of Providers
This bill alters the manner in which health insurance carriers are required to provide to enrollees and prospective enrollees, a list of providers on the carrier's provider panel. Carriers will be required to inform each existing and prospective enrollee how to obtain provider information on the Internet or in printed form.

Effective Date: October 1, 2003

For more information, please contact: Sheila Higdon


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Miscellaneous

HB0019    Recordation and Transfer Taxes - Transfers of Controlling Interests
This bill imposes taxes on the transfer of a corporation, partnership, association, limited liability company, limited liability partnership, other unincorporated form of doing business, or a trust that owns interests in real property in Maryland that constitute at least 80% of the value of its assets and has an aggregate value of at least $500,000. It will require submission of certain reports and a filing fee for those reports.

The transaction is exempt only if it occurs over a period of more than 12 months, or if the transfer is not made in accordance with a plan of transfer. It does not apply to a transfer to a subsidiary, partner, or a parent corporation. It also does not apply to non-stock corporations or a continuing care retirement community.

Effective Date: January 1, 2004

For more information, please contact: Kate Bishop


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Pharmaceuticals

HB0950    Maryland Pharmacy Assistance Program - Copayment
This bill alters the co-payment for the Maryland Pharmacy Assistance Program (MPAP) from $5.00 for each covered service to $2.50 for generic drugs, or drugs on a preferred drug list and $7.50 for brand name drugs.

Effective Date: October 1, 2003

For more information, please contact: Nicole Xander


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Public Health

SB0261    Clean Indoor Air Act of 2003
This bill establishes the Clean Indoor Air Act of 2003, which would make it illegal to smoke in all indoor public areas, including places of employment, elevators, and at least 75% of motel or hotel sleeping quarters. Exceptions include:

1) Private residences and automobiles, including those used for business, except child or day care or transportation for children,
2) Private social functions in indoor areas,
3) Private limousines,
4) Hotel/motel room when total rented rooms is less than 25%
5) Fund-raising function of volunteer fire, ambulance, or rescue company, or fraternal benefit society,
6) Indoor area used for art performance (music, film, theater) where tobacco smoke is a part of performance.

The bill also requires warning signs where smoking is permitted, and the Department of Health and Mental Hygiene (DHMH) and the Department of Labor, Licensing and Regulation (DLLR) to report to the General Assembly on enforcement of regulations.

There will be a fine of $100 for first violation, and at least $250 each subsequent violation.

Effective Date: October 1, 2003

For more information, please contact: Jason Spangler


SB0494    Firearms - Assaults Weapons - Ban
This bill would remove assault weapons (as specified by the list in the bill) from being previously regulated firearms. These weapons would now be prohibited in the State from being possessed, sold, transferred, offered, received, or transported. The bill does not apply to law enforcement or military personnel, those who sell to these personnel, or weapons obtained through inheritance or as part of an estate. The bill also does not apply retroactively -- those who possessed registered weapons before the effective date may continue to do so.

Violation entails imprisonment up to three years and a fine up to $5000. If the violation includes a weapon with more than 20 rounds, imprisonment is 5 to 20 (without parole unless eligible under current statute) years with subsequent violation imprisonments of 10 to 20 years.

Effective Date: October 1, 2003

For more information, please contact: Jason Spangler


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Tort Reform

HB0832    Payment of Future Economic Damages
This bill states, if all parties to an action agree, or if any party files an effective election for future economic damages exceeding $100,000, the court or health claims arbitration panel shall order that all or part of the award be paid in the form of an annuity or other appropriate financial instruments.

The effective election described above must be filed at least 120 days before trial, and an objection to the election must be filed within 30 days after service of the election. The court or panel may waive these time limits. The bill also states that election is effective unless:

1) The plaintiff stipules that the claim for future economic damages is less than $100,000,
2) the court or panel finds good cause why an award should not be paid in the form of an annuity or similar financial instrument,
3) all parties agree.

The bill also states that if an annuity will be used to pay for future economic damages, the financial instrument must be purchased from an insurance company that has at least two of the ratings listed in the statute from approved rating agencies.

Effective Date: October 1, 2003

For more information, please contact: Jim Kaufman


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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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ACRONYMS


Legislative Hotline is a collaborative service of The Johns Hopkins University and Johns Hopkins Medicine offices of Government Relations.

© 2003 The Johns Hopkins University. Baltimore, Maryland.
Office of Government, Community and Public Affairs.
Last updated 03feb26