Legislative Hotline

2005 SESSION OF THE
MARYLAND GENERAL ASSEMBLY

 

 

 

Volume 13, Number 5����������������������������������������������������������������������������������������������� February 24, 2005

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

Medicaid Budget Hearing

Energy Assistance Program

 

BILLS INTRODUCED
STAFF CONTACT INFORMATION

 

Medicaid Budget Hearing

 

This week the House Appropriations health subcommittee delved into the single largest item in the state budget – Medicaid which totals $4.3 billion.The Governor’s allowance for the program, which includes reductions contingent upon legislative approval, will increase $358.5 million or 9.1%.

 

While this increase is significant, the budget includes more than $112.6 million in new and expanded cost containment efforts, not to mention the continuation of a $60 million total fund savings through the implementation of day limits on hospitals.The estimated $112.6 million in savings includes:

 

  • Across the board rate reductions for Managed Care Organizations - $14.0M
  • Reduced durable medical equipment/supplies costs - $2.6M
  • Reduced ventilator patient reimbursements - $4.0M
  • Reductions in inappropriate provider payments - $32.5M
  • Elimination of non-emergency care for legal aliens - $7.0M

 

In addition to the new and expanded cost containment efforts included in the Governor’s budget, the Department of Legislative Services has recommended an additional $92.5 million in total funds savings in the FY 2006 budget to include:

 

  • Elimination of “duplicative” physician fee increases - $37.0 M

The analyst noted that funding was included to increase physician fees in both HB 2 which earmarks $78 million from the special session and the Governor FY 2006.

  • Remove funding for MCO rate increase for CY 2006 - $46.0M

Traditionally, DHMH does not include funding for the following year’s capitation rate increase to prevent the MCOs from knowing the projected increase.The proposed reduction total 6% of capitation rates.If the reduction is accepted, this reduction will result in a deficiency appropriation during the 2006 session.

  • Restrict MCO funding for quality performance - $8.0M

The budget bill language would restrict funding until DHMH develops a quality initiative to reward MCO for performance based on eight measures for CY 2005

 

The Department of Legislative Services also included updates on several other Medicaid issues:

 

  • Driving Medicaid Cost

The Medicaid budget is expected to grow 8% annually over the next five years, exceeding the projected growth in state revenues.From FY 2001 to FY 2004, the disabled population accounted for the largest increases in costs (almost $800 million) and the largest annual percentage increase (almost 14% annually).One driver cited in the costs increase is a disproportionate growth in outpatient emergency department spending.The data suggests that Medicaid patients are using emergency departments for less complex ailments than other populations.

 

In an attempt to control costs, Legislative Services provided information on potential cost containment options to include:

-          Competitively procure managed care services

-          Restrict Children Health Insurance Program to 200% of poverty

-          Apply for federal waiver changing penalty for inappropriate asset transfer

-          Reduce income eligibility for pregnant woman from 250% to 200% of poverty

-          Eliminate optional services to include durable medical equipment and hospice

-          Limit the annual number of physician visits to 12

-          Limit the number of bank name drugs to 4 per month

-          Abolish inpatient hospital coverage for medically needy

 

         MCO Medical Loss Ratio

The analysis provides an update on language included in the FY 2005 budget requiring DHMH to sanction MCOs with less than average HEDIS scores and medical loss ratios (MLR) of less than 84%.While the budget assumed a savings of $7.4 million due to the sanction, only $845,846 was actually achieved due to a difference in the audited MLR.The Department of Legislative Services goes on to note that for CY 2003 four plans are at or below the 85% statutory medical loss ratio, with Amerigroup (78%) and Jai (80%) reporting the two lowest MLR.Meanwhile, Maryland Physician Care (88%) and Priority Partners (93%) reported the highest MLR.Since MLR is not considered a sound measure of quality, the Department of Legislative Services recommend restricting $8.0 million (0.5% of capitation rates) for a managed care performance-based incentive pool to be developed in FY 2006.

 

         Physician Fee Increase

While the FY 2006 budget includes many new and ongoing cost containment efforts, the budget includes $37 million to increase physician reimbursement rates.In addition to the funds included in the budget, HB 2 from the special session also earmarked funding to increase reimbursement rates.During the budget hearing, DHMH testify that their implementation plan for these funds is to increase the entire fee schedule to 100% of Medicare.The implementation plan will phase in the increase over a few years by increase rates first for OB/GYN, neurosurgery, orthopedics, and emergency department providers. Second will be commonly used surgical codes, then evaluation and management codes, and finally all other rates.DHMH also stated that they plan to maintain comparability with Medicare through an annual inflation adjustment.

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Energy Assistance Program

 

Over the last several months the Johns Hopkins Pediatric Trauma Center has seen seven children who were burned as a result of the use of open flames in homes where power had been disconnected.Of the seven cases, five of these children died.In several instances the families were in the process of applying for funds through the Maryland Energy Assistance Program when their power was turned off.Dr. David Nichols has been working with the Maryland Department of Human Resources, the Public Service Commission and utility companies to ensure that when a family applies for funding, the request is processed in a timely manner and funding is received before power is turned off.The Department of Human Resources introduced Senate Bill 129 - Energy Assistance Program Act in attempt to clean up the statute to better reflect how the program is truly being administered.Dr. Nichols provided testimony at the hearing and an amendment that specifies that special consideration be given to households with children.Both the Department and the Senate Finance Committee looked favorably upon this amendment.On Friday, the Committee voted SB 129 favorable with amendments.The bill will be voted on by the full Senate this week, if passed it will then crossover to the House of Delegates for consideration.

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BILLS INTRODUCED
Budget-Capital

Business Operations

CRF

Economic Development

Environment Health

General Business

General Education

General Health Care

Health Care Facilities

Health Care Practitioners

Health Insurance

Higher Education

Long Term Care/Nursing Homes

Medicaid

Public Health

Research/Human Subject

Taxes/Tax Policy

Tort Reform

Miscellaneous


BILLS INTRODUCED

Budget - Capital

HB0908Creation of a State Debt - Washington County - Community Free Clinic

The bill creates a state grant totaling $75,000 to the Regional Health Care Center Foundation for the acquisition of the Community Free Clinic in Hagerstown.

Effective Date:June 1, 2005

For more information, please contact:Jim Kaufman

SB0783Creation of a State Debt - Maryland Hospitals

TThe bill creates a $5.0 million state grant to be known as the Maryland Hospital Loan of 2005 to provide grants to:

1.      $1.1 million to Calvert Memorial Hospital

2.      $0.1 million to Atlantic General Hospital

3.      $1.2 million to Civista Hospital

4.      $0.6 million to North Arundel Hospital

5.      $0.4 million to Potomac Ridge Behavioral Health System

6.      $0.8 million to Northwest Hospital Center

7.      $0.8 million to Mercy Medical Center

The bill consolidates the individual bond bills to receive state funding through the Maryland Hospital Association.

Effective Date:June 1, 2005

For more information, please contact:Jim Kaufman

[Go To Bills Introduced]


Business Operations

HB0686Labor and Employment - Electronic Monitoring of Employees

ThThis bill adds to �3-709 of the Labor & Employment Article.An employer may not engage in electronic monitoring of an employee before providing an employee with notice.A notice required under this section shall expressly state the form of communication or other activity that will be monitored, the means by which monitoring will be accomplished, the frequency of the monitoring, and how information obtained by the monitoring will be stored, used, or disclosed.An employer may include the notice in an employee handbook.An employer shall provide the notice to all employees who will be subject to electronic monitoring as a result of a change in an electronic monitoring practice.An employer may conduct electronic monitoring without notice to an employee if the employer has reasonable grounds to believe that a particular employee is engaging in unlawful conduct and electronic monitoring will produce evidence of the employee's unlawful conduct.

Effective Date:October 1, 2005

For more information, please contact:Heather Barthel

SB0600Employment - Pay Rates - Maryland Self-Sufficiency Standard

This bill establishes the Maryland Self-Sufficiency Standard under � 3-413.1 of the Labor and Employment Article – Payment of Minimum Wage Required.An employee whose pay rate is less than the Maryland Self-Sufficiency Standard shall receive an increase in the employee's pay rate at a percentage that is at least twice the percentage increase for employees whose pay rate is at least equal to the Maryland Self-Sufficiency Standard.The Maryland Self-Sufficiency Standard is a calculation of the income an employed adult requires to meet the individual's needs, including housing, food, dependent care, transportation, and medical costs.The Department of Business and Economic Development (DBED) shall develop the Maryland Self-Sufficiency Standard on or before January 1, 2006. The Maryland Self-Sufficiency Standard shall be used to determine employed adults who are "at-risk workers" and "under-employed workers".On or before March 1, 2006, DBED shall distribute the Self-Sufficiency Standard to units of state government that counsel individuals seeking education, training, or employment. Units of state government shall use the Self-Sufficiency Standard to assist an individual in establishing personal financial goals and estimating the amount of income needed to support the individual's family.

Effective Date:July 1, 2005

For more information, please contact:Heather Barthel

[Go To Bills Introduced]

CRF

HB1199Developmental Disabilities Administration - Waiting List Equity Fund - Appropriation

The bill authorizes DHMH to transfer a maximum of $10 million of the funds allocated from the CRF to rural, underserved areas of the State to provide community-based services necessary to sustain individuals in their own homes or in community-based living options.It also requires that for fiscal years 2007 through 2017, $5 of CRF shall be appropriated for the purposes of a Waiting List Equity Fund for providing community-based services through the Developmental Disabilities Administration.

Effective Date:October 1, 2005

For more information, please contact:Sheila Higdon

[Go To Bills Introduced]


Economic Development

HB0214Business and Economic Development - Financial Assistance Programs

House Bill 214 designates the members of the Maryland Industrial Development Financing Authority (MIDFA) to also serve as the members of the Maryland Economic Development Assistance Authority (MEDAA). The bill terminates the terms of the current members of MIDFA and MEDAA on July 1, 2005, and provides for the appointment of seven new (MIDFA) members with staggered terms.The bill raises the amount of assistance that the Maryland Industrial Development Fund (MIDF) can provide in any one transaction from $50,000 to $250,000. The bill also alters the economic criteria that determines the counties in which businesses must be located in order to be eligible for certain MIDF assistance. Specifically, businesses eligible for MIDF assistance must be located in qualified distressed counties.Counties currently meeting the definition are Baltimore City, and Allegany, Caroline, Cecil, Dorchester, Garrett, Somerset, and Worcester counties.

Effective Date:July 1, 2005

For more information, please contact:Bret Schreiber

SB0620Biotechnology Investment Incentive Act

Senate Bill 620 provides a tax credit for investments in biotechnology companies and venture capital firms.The Department of Business and Economic Development will approve and certify the credit.

Effective Date:July 1, 2005

For more information, please contact:Bret Schreiber

[Go To Bills Introduced]


Environment Health

HB0496Environment - Gasoline Containing Methyl Tertiary Butyl Ether - Prohibition

This bill adds to the definition of “Oil” ethanol and other oxygenates.On or after January 1, 2010, a person may not sell, offer for sale, supply, or offer for supply gasoline that contains more than 0.5% of Methyl Tertiary Butyl Ether by volume.The Department may adopt regulations necessary for the implementation of this section.

Effective Date:October 1, 2005

For more information, please contact:Heather Barthel

HB0575Environment - Statewide Computer Recycling Program

This bill establishes the Statewide Computer Recycling Program in � 9-1727 of the Environment Article.On or after January 1, 2006, a manufacturer may submit an environmental compliance plan for computers to the Department.The environmental compliance plan shall include a description of the actions taken and planned by the manufacturer to design its computers so that the computer is easily broken down into recyclable components and contains the least achievable amount of hazardous materials, a description of any computer recycling or reuse efforts conducted or supported by the manufacturer, including recycling contracts with businesses located in the State.

After review of the manufacturer's environmental compliance plan, if the Department determines that implementation of the plan by the manufacturer will significantly reduce the amount of computer waste entering the solid waste stream, the Department shall certify the manufacturer's plan.

A certification granted or renewed is valid for 2 years.Prior to the expiration of the certification, a manufacturer may apply to the Department for a certification renewal.The application for renewal shall include details of the manufacturer's implementation of the original environmental compliance plan.There is a state computer recycling fee.The fee shall be established in regulation by the department on or before July 1, 2006, at a level that ensures funding sufficient to implement and operate the statewide computer recycling program.On or after July 1, 2006, if the computer's manufacturer does not have a certified environmental compliance plan for computers, the fee shall be imposed on the first sale of a new computer by a retailer to a consumer in the state and collected by the retailer at the time of the sale.

On or before the 21st day of the month that follows the month in which the sale was made, the retailer shall submit to the Comptroller of the Treasury an account of any fees collected and any fees collected, less the administrative costs.

A retailer who timely submits an accounting of the fees collected and paid is allowed, for the expense of administering the collection and payment of the fees, a credit equal to 1.2% of the gross amount of the State Computer Recycling Fees that the retailer must pay to the Comptroller.

If the amount of the State Computer Recycling Fee is separately stated in a retail sale, the fee is not subject to any tax under title 11 of the Tax - General Article.At the end of each quarter, the Comptroller shall forward all state computer recycling fees to the Statewide Computer Recycling Fund, less the costs of administration.

The bill establishes the Statewide Computer Recycling Fund.The fund may be used only for costs incurred in conducting public outreach to educate the public on the importance of recycling computers and sites where computers may be recycled; for activities related to computer recycling programs, including research, planning, monitoring, public education, and market development; and to provide grants to local governments for costs related to the implementation of county or regional computer recycling systems.

Effective Date: July 1, 2005

For more information, please contact:Heather Barthel

HB0660Environment - Gasoline Underground Storage Tanks - Groundwater Contamination

This bill adds to �4-412.1 to the Environment Article.In this section, "levels of concern" means benzene at or above 5 parts per billion, total benzene, toluene, ethyl benzene, and xylene at or above 100 parts per billion, and methyl tertiary butyl ether at or above 20 parts per billion.

If site groundwater samples collected by an owner of a gasoline underground storage tank system contain concentrations of gasoline constituents that are equal to or greater than the levels of concern, the owner shall report the concentrations to the Department within 24 hours, develop a corrective action plan, provide notice to those members of the public directly affected by the groundwater contamination and the planned corrective action as determined by the Department.If required by the Department, the owner must perform groundwater testing of adjacent properties and upgrade defective piping, spill and overfill prevention equipment, containment stumps, and tanks.

Effective Date:October 1, 2005

For more information, please contact:Heather Barthel

HB0960Environment - Methyl Tertiary Butyl Ether, Ethyl Tertiary Butyl Ether, and Tertiary Amyl Methyl Ether - Prohibition

This bill creates �4-404 in the Environment Article.On or after October 1, 2006, a person may not sell, offer for sale, supply, or offer for supply gasoline that contains more than 0.5%, by volume, of methyl tertiary butyl ether, ethyl tertiary butyl ether, or tertiary amyl methyl ether.On or after October 1, 2010, a person may not sell, offer for sale, supply, or offer for supply gasoline that contains methyl tertiary butyl ether, ethyl tertiary butyl ether or tertiary amyl methyl ether.The Department may adopt regulations necessary for the implementation of this section

Effective Date:October 1, 2005

For more information, please contact:Heather Barthel

[Go To Bills Introduced]


General Business

SB0371Baltimore City - Displaced Building Service Workers Protection Act

Requiring, in Baltimore City, specified contractors to retain specified building service workers for a specified transition employment period; requiring specified contractors to provide a list containing employee information to specified contractors and to post specified information; requiring specified contractors to maintain a preferential hiring list for building service workers not retained during the transitional period; establishing specified penalties; defining specified terms; etc.

If the bill is passed, it is almost mandatory that a new service contractor assume displaced employees who are not offered continuing employment with the contractor losing a contract.

Effective Date:October 1, 2005

For more information, please contact:Bret Schreiber

[Go To Bills Introduced]


General Education

HB0480Public Schools - Summer Learning Pilot Program

House Bill 480 establishes the Summer Learning Pilot Program.The purpose of the program is to provide additional instruction in reading, language arts and mathematics to low income students over the summer break in an effort to prevent the loss of academic skills.

Effective Date:July 1, 2005

For more information, please contact:Bret Schreiber

HB0995Education - Principals - Fellowship and Leadership Development Program

House Bill 995 establishes the statewide Principal Fellowship and Leadership Development Program in the State Department of Education.The bill requires that the MSDE develop criteria for the selection of fellows and receiving schools.This bill recognizes that developing strong principles is essential to improving school and student achievement and intends to expand the existing Maryland Distinguished Principal Fellowship Program statewide to focus on school instructional leadership, school improvement, and leadership success.

Effective Date:July 1, 2005

For more information, please contact:Bret Schreiber

SB0165Task Force to Study a Pay-For-Performance Model for Public School Teachers in Maryland

Senate Bill 165 establishes a Task Force to Study a Pay-For-Performance Model for Public School Teachers in Maryland. The task force must study pay-for-performance models being used in other states and make recommendations regarding the feasibility of implementing a compensation model in Maryland

based partially or fully on student achievement. The task force must submit an interim report by December 15, 2005 and a final report by June 15, 2006. The bill takes effect June 1, 2005 and terminates June 30, 2006.

In a June 2001 Education Commission of the States report, teacher pay-for-performance models were analyzed including those that have been implemented in Cincinnati, Ohio; Denver, Colorado; Douglas County, Colorado; Iowa; and five schools in Arizona. The report lists seven lessons that were learned in the design and implementation of these models.

         The development of a pay-for-performance system should be a collaborative effort that includes input from teachers, school administrators, parents, policymakers, and the public.

         Designing and implementing a pay-for-performance model takes time, commitment, and willingness to envision a new system.

         The experiences of districts that have implemented pay-for-performance models can be enlightening, but recognizing local circumstances and perspectives are vital.

         Frequent and consistent communication with stakeholders is crucial.

         Teacher evaluation criteria must provide diagnostic feedback, be aligned with performance standards and measure outcomes that teachers can affect.

         Teachers and principals must be given the training they need to make effective use of student and teacher assessments.

         A successful pay-for-performance model cannot be implemented without examining other factors that affect the model, such as fiscal policies, data gathering and professional development.

This bill will determine whether such a model makes sense in Maryland.

Effective Date:June 1, 2005

For more information, please contact:Bret Schreiber

SB0266Quality Teacher Incentive Act - Increasing Participation

Senate Bill 266 increases from 500 to 750 the maximum number of teachers that the State Board of Education may select each year to pursue national certification under the State and Local Aid Program for Certification by the National Board for Professional Teaching Standards.The bill will ensure high quality teachers that adhere to national best practice standards are working in schools throughout the State.

Effective Date:October 1, 2005

For more information, please contact:Bret Schreiber

[Go To Bills Introduced]


General Health Care

HB1151Task Force to Study the Impact of Illegal Aliens on Uncompensated Health Care

The bill creates a 21-member Task Force to study the impact of illegal aliens on health care providers in the state.The task force includes five members from each the House and Senate, the Secretary of Health, and five experts in the field of immigration law or health care, and five consumers.The task force sunsets on June 30, 2006.

Effective Date:July 1, 2005

For more information, please contact:Jim Kaufman

HB1263Maryland Medbank Program - Grants from Nonprofit Health Service Plans

The bill requires the Medbank Program to receive $2 million beginning in FY 2006 and each year thereafter from a nonprofit health plan as defined under Section 14.106.1 of the Insurance Article (i.e., CareFirst BlueCross and BlueShield).

Effective Date:July 1, 2005

For more information, please contact:Jim Kaufman

SB0716Community Health Care Access and Safety Net Act of 2005

The bill creates a 7 member Maryland Community Health Resources Commission which is to adopt regulations establishing the criteria for a community health resource (CHR) and the services the CHR must provide to qualify for operating grants from the Commission.The Commission must also to develop a revolving loan fund to assist CHRs in obtaining reduce drug prices, establish procedures to encourage specialist in serving individuals referred from a CHR, establish a reverse referral program, and evaluate the feasibility of creating a unified information and data management system for use by all CHRs.

The Commission will administer a fund to provide $5 million in operating grants annually to the CHR, from funds appropriated by the Governor.Finally, the bill creates the Federally Qualified Health Center Bond Program to assist in construction and renovations of FQHCs in the state.The bill sunsets on June 30, 2008.

Effective Date:July 1, 2005

For more information, please contact:Jim Kaufman

SB0728Maryland Pharmacy Discount Program - Expansion - State Discount

The bill alters the eligibility criteria for the Maryland Pharmacy Discount Program to include a Medicare beneficiary or other individual who lacks other health insurance coverage and whose annual household income is at or below 300% of the federal poverty level.The bill is contingent upon a waiver approval from the

Centers for Medicare and Medicaid Services.

Effective Date:June 1, 2005

For more information, please contact:Jim Kaufman

[Go To Bills Introduced]


Health Care Facilities

HB0925Health Insurance - Health Care Provider Credentialing Process

The bill amends the process for health insurance credentialing and recredentialing of health care providers. It requires a health insurance carrier, or its credentialing intermediary to provide the following notification to health care providers:

1)     within 10 business days of receipt of a uniform credentialing form, notifying the provider for credentialing or recredentialing in writing of the date of receipt of the form,

2)     within 10 business days, notifying to the applicant of any material deficiencies in the form and notifying the applicant of the time within which the additional information must be submitted,

3)     applicant shall have at least 30 days in which to submit additional information, and

4)     within 10 business days or receipt of additional information, the carrier or intermediary shall acknowledge in writing of the receipt of the requested information.

Within 60 days following receipt of any additional information requested, or if no such information was requested, within 60 days following receipt of the applicant's uniform credentialing form - whichever is later - the carrier or its intermediary shall complete the credentialing/recredentialing process by either accepting or rejecting the applicant's uniform credentialing form.

The carrier or its credentialing intermediary shall act in good faith so as to not unreasonably delay the credentialing or recredentialing process.

The bill also requires health care providers who have changed employment or provides services pursuant to a new federal taxpayer ID number and who has been credentialed or recredentialed by a carrier or its intermediary shall, if practicing in the same specialty in which they are currently credentialed, continue to be credentialed if not less than 30 days prior to the effective date of the change, the provider furnishes written notice to the carrier or intermediary.The written notice shall include:

1)     effective date of change,

2)     new Federal Taxpayer ID number and copy of US Treasury Form W-9, or any applicable form

3)     information concerning a new employer including the name of the employer, address, telephone, fax numbers, e-mail address, and name and contact information of the employer's contact person for questions regarding the health care provider, and

4)     any other information that may materially differ from the most recently completed credentialing application form by the provider to the carrier or intermediary.

The bill stipulates that if there has been a material change in the health care provider's credentialing information, the carrier or credentialing intermediary may not be required to contract or credential the provider.

Health care providers who become credentialed or recredentialed with a carrier shall be paid by the carrier per the carrier's agreement with the provider or the provider's employer and the carrier's subscriber or member for services rendered by the provider during the credentialing application period.

A carrier has no obligation to pay a health care provider or employer any amount for services rendered by a health care provider if that provider is not credentialed or recredentialed with the carrier except as required by law or by the subscriber's or member's contract with the carrier.

Health care providers whose credentialing/recredentialing is pending shall inform the enrollee of the pending status before providing service to the enrollee.The enrollee or subscriber under whose coverage the provider is seeking a service may be responsible for payment to the provider for the service, as provided in the agreement between the carrier and the subscriber.

A carrier shall extend the period of submission of claims of a health care provider who is being credentialed/recredentialed for a period of 90 days from date following the credentialing/recredentialing decision.

Any claim whether or not held in suspension by the carrier pending credentialing/recredentialing, submitted before the expiration of the 90-day period shall be considered timely filed, even if the suspension is lifted after the expiration of the 90-day period.

Effective Date:October 1, 2005

For more information, please contact:Sheila Higdon

HB1316Department of Health and Mental Hygiene - Office of the Inspector General - Health Program Integrity and Recovery Act

The bill establishes the Office of the Inspector General in the Department of Health and Mental Hygiene (DHMH).The Inspector General (IG) will be authorized to investigate mistaken claims, and fraud, waste and abuse of departmental funds, and will cooperate and coordinate investigative efforts with the State Medicaid Fraud Control Unit and where a preliminary investigation establishes a sufficient basis to warrant referral, shall refer such matters to the Medicaid Fraud Control Unit.The IG will also cooperate and coordinate investigative efforts with Departmental programs and other state and federal agencies.

Definitions include the following:

Abuse: provider practices that are inconsistent with sound fiscal, business, or medical practices and result in unnecessary costs to a program, or in reimbursement for services that are not medically necessary or that fail to meet professionally recognized health care standards.

Claim: request or demand for money, property, or services made under contract or otherwise, by a contractor or grantee, provider, or other person seeking money for the provision of health services if the State or Department provides any portion of the money or property that is requested or demanded, or reimburses the contractor, grantee, provider or other person of any portion of the money or property that is requested or demanded.

Fraud: intentional deception or misrepresentation made by a person with the knowledge that the deception or misrepresentation could result in some unauthorized benefit or payment.It includes any act that constitutes fraud under applicable state or federal law.

Program includes:

1)     Medical Assistance Program,

2)     Cigarette Restitution Fund Program,

3)     Mental Hygiene Administration,

4)     Developmental Disabilities Administration,

5)     Alcohol and Drug Abuse Administration,

6)     Family Health Administration,

7)     Community Health Administration, and

8)     any other unit of DHMH that pays a provider for a service rendered or claimed to have been rendered a participant.

Provider: an individual licensed or certified under the Health Occupations Article to provide health care, a facility that provides health care to individuals, or any other person or entity that provides health care, products, or services to a program recipient.

Provider includes the following as defined by the Health General Article:

1)     a facility,

2)     an "historic provider",

3)     a managed care organization,

4)     a health maintenance organization,

5)     a Federally Qualified Health Center, and

6)     includes a contractor, subcontractor, or vendor who directly or provides DHMH or its recipients medical or pharmaceutical supplies, drugs, equipment or services.

In collaboration with the appropriate Departmental Program, the IG may take necessary steps to recover any mistaken, wrongful or fraudulent claims paid, or the cost of benefits obtained may perform audits and inspections of providers.The IG may work with providers to reduce mistaken claims, fraud, waste, and abuse in the health care system and coordinate investigative and recovery efforts with other departments and agencies.The IG may also issue an administrative subpoena for the production of all information, documents, reports, answers, records, accounts, papers, electronic media, and other data and documentary evidence that may assist in its investigation.

The IG may require a provider seeking payment for a state health program to adopt and adhere to a corporate integrity plan, defined as a formal organizational agreement that promotes prevention, detection, and resolution of conduct that does not conform to the requirements of the law.It may include the following elements:

1)     designation of an individual within the organization as a compliance officer,

2)     training program regarding reimbursement principles,

3)     a hotline to promote effective communication,

4)     published guidance regarding disciplinary action for corporate officers, managers, and employees who fail to comply with the orgainization's billing standards,

5)     period reporting of data not originally required to be reported, and

6)     other provisions as needed to combat mistaken claims of fraud, waste and abuse.

The bill also stipulates that a person may not:

1)     knowingly present a fraudulent claim for payment or approval,

2)     knowingly make a wrongful claim,

3)     conspire to defraud,

4)     knowingly make a false statement in order to get a claim paid,

5)     engage in practices that are prohibited by law regarding participation in a program or providing health care services to a recipient,

6)     fail to cooperate with an investigation, and

7)     fail to maintain records for 5 years after a claim is submitted for payment, or the period of time required by the paying program

If a provider has a reasonable indication of fraud, waste or abuse, the provider shall immediately notify in writing the appropriate program, the IG, or the Medicaid Fraud Control Unit.On receipt of the notification, the IG may

1)     conduct an investigation, and

2)     refer the matter to the appropriate program or investigative authority.

Such notification does not limit DHMH's authority to investigate mistaken claims, fraud, waste and abuse in the absence of notification.In determining whether or not to proceed with an action, DHMH shall take into account whether the provider was self-reported and has a corporate integrity plan.

Providers who violate provision of this law are subject to the following administrative penalties:

1)     recovery of any departmental funds wrongfully, fraudulently, or mistakenly paid to the provider,

2)     costs of collection and investigation of the mistaken claim, fraud, waste or abuse,

3)     interest on any moneys mistakenly, wrongfully or fraudulently obtained by the person,

4)     imposition of a lien on assets,

5)     a fine of up to $10,000 per incident up to a maximum of $100,000,

6)     suspension or termination of the provider from the Program, and

7)     any other penalties, limits, conditions or controls imposed by DHMH regarding the provision of health care services provided in any DHMH Programs.

The penalties are in addition to any criminal, civil, or administrative penalties provided under any other state or federal statute or regulation.Any fine paid will be paid to the General Fund of the State and the Comptroller will return to or credit the respective Program with any recovery or other restoration of funds.

The bill also provides that a person who is instrumental in the recovery of Departmental funds may receive an amount not greater than 10% of the proceeds actually recovered.�� An employee or contractor of federal, state, or local government is not eligible for this award and DHMH may not award a person who knowingly participated in the violation.A person may not be civilly liable for a report made in good faith, or participating in an investigation.A provider may not take retaliatory action against an employee who discloses or threatens to disclose to a supervisor or public body an activity, policy or practice that is in violation of the law, and may not retaliate against an employee who provides information relative to the violation.

Effective Date:October 1, 2005

For more information, please contact:Sheila Higdon

HB1320Health Care Facilities and Laboratories - Accreditation Organizations and Deeming

The bill applies to the state licensure and accreditation of health care facilities, which include hospitals, health maintenance organizations, freestanding ambulatory care facilities, assisted living facilities, laboratories, home health agencies, and residential treatment facilities.�� An accreditation organization,

defined as a private entity that conducts inspections and surveys of health care facilities based on nationally recognized and developed standards, must apply to apply to the Secretary of the Department of Health and Mental Hygiene for approval.Prior to approval, the Secretary shall determine that the standards of the accreditation organization are equal to or more stringent than existing state requirements; evaluate the survey or inspection process of the accreditation organization to ensure the integrity of the survey process; and, enter into a formal written agreement with the accreditation organization that includes requirements for:

1)     notice of all survey inspections,

2)     sharing of complaints and other relevant information,

3)     participation by DHMH in accreditation organization activities, and

4)     any other provision necessary to ensure the integrity of the accreditation and licensure process.

When an accreditation organization has issued a final report finding a health care facility to be in substantial compliance with the accreditation organization's standards, DHMH shall accept the report as evidence that the health care facility has met state licensure requirements and shall grant the health care facility deemed status.

Health care facilities that fail to achieve substantial compliance will be subject to existing law regarding such failure.

An approved accreditation organization shall send DHMH the preliminary and final reports of each inspection and survey at the time it is sent to the health care facility.A final report shall be made available immediately to the public upon request.Neither a preliminary nor a final report may be admissible in evidence in any civil action or proceeding.��

DHMH may inspect an accredited health care facility to

1)     determine compliance with any quality requirement,

2)     follow up on any serious problem identified by an approved accreditation organization,

3)     investigate a complaint,

4)     participate in or observe a survey of an approved accreditation organization, and

5)     validate the findings of an approved accreditation organization.

If the Secretary determines that an approved accreditation organization has failed to meet its obligations, the Secretary may withdraw the approval from the accreditation organization, and the deemed status given to a health care facility by the accredited organization.

Effective Date:October 1, 2005

For more information, please contact:Sheila Higdon

[Go To Bills Introduced]


Health Care Practitioners

HB0827Hospitals - HIV Testing - Consent - Court Order

The bill amends current statute regarding an exposure in a hospital between a patient and a health care provider, or between a patient and a first responder before admission of the patient to the hospital.It would add a provision requiring the designated infectious disease/communicable disease officer of a hospital to order a test for the presence of antibodies for HIV if a blood sample already obtained from the patient for the presence of HIV was sought and the patient refused.

It also adds a provision that if the blood sample already obtained is unavailable, and the patient refuses to consent to blood testing for the presence of HIV, the individual involved in the exposure or the employer of that individual may petition the circuit court for an order requiring the patient to provide a blood sample and disclose the results in accordance with statute.

The hospital infectious disease/communicable disease officer is not required to notify the patient of the results of the test if the patient has declined notification.

Effective Date:October 1, 2005

For more information, please contact:Sheila Higdon

HB1099Statewide Commission on the Nursing Workforce

The bill creates the Statewide Commission on the Nursing Workforce for the following purposes:

1)     assess, monitor and evaluate the current and long-term impact of the nursing workforce on access to, and delivery of, safe, quality health care;

2)     develop and implement a standardized statewide system of data collection on the nursing workforce;

3)     establish committees to address issues and make recommendations related to the nursing workforce and deliver of safe, quality health care;

4)     serve as an advisor to public and private entities to facilitate implementation of nursing workforce strategies;

5)     develop strategies for increasing ethnic and cultural diversity of the nursing workforce; and

6)     provide for an annual meeting of the state's nursing workforce and issues related to quality nursing and health care.

The Commission may appoint an advisory committee composed of state government and community leaders to assist with implementation of strategies.A report from the Commission on the state of the nursing workforce in the state will be due annually.

The Commission will be staffed by the Board of Nursing and membership shall include a representative of the following:

1)     Maryland Nurses Association

2)     Maryland Organization of Nurse Executives

3)     Licensed Practical Nurses Association

4)     DHMH

5)     Maryland Board of Nursing

6)     Maryland Higher Education Commission

7)     Maryland Association for Associate Degree Education

8)     Maryland Public Health Nursing Directors

9)     Dean of a Baccalaureate Nursing Program

10) Maryland Association of Student Nurses

11) Maryland Association of Nurse Recruiters

12) Consumer

13) Governor's Workforce Investment Board

14) 2 advanced practice nurses

15) 6 direct care nurses

16) 1 direct care nurse working in home care

17) a physician

18) Maryland Hospital Association

19) Maryland licensed nurse working in federal service

20) member of the house of delegates

21) member of the senate

Effective Date:Various

For more information, please contact:Sheila Higdon

HB1227Income Tax - Subtraction Modification for Uncompensated Care

The bill allows a subtraction modification for uncompensated care provided by a physician providing care to an emergency or trauma patient who is uninsured, not eligible for Medicaid, and has not paid the physician for care provided.The income tax subtraction is equal to 100% of the value of the uncompensated care.

Effective Date:July 1, 2005

For more information, please contact:Jim Kaufman

SB0596Licensed Physicians - Treatment of Lyme Disease - Discipline - Insurance Coverage

The bill allows licensed physicians to prescribe or dispense long-term antibiotic or antimicrobial therapy for therapeutic purposes for individuals with lyme disease and provides that the prescribing physician may not be subject to a professional misconduct proceeding or a disciplinary action by the State Board of Physician Quality Assurance as a result of such treatment.It does not prohibit the Board from taking action if the physician prescribes or dispenses long-term antibiotic or antimicrobial therapy for non-therapeutic purposes, failing to monitor the ongoing care of an individual receiving such therapy, or failure to keep complete and accurate records relating to that care.

The bill also requires insurance carriers and HMOs to provide coverage for long-term antibiotic and antimicrobial treatment of lyme disease and related tick-borne illnesses.

Effective Date:July 1, 2005

For more information, please contact:Sheila Higdon

[Go To Bills Introduced]


Health Insurance

HB1144Public-Private Partnership for Health Coverage for All Marylanders

The bill expands Medicaid coverage for families with incomes below 400% of the poverty level, guaranteeseligibly for 12 months, and removes the 300% of poverty requirement for children under the age of 19 to qualify for the Children’s Health Insurance Premium Program.The benefits package offered as part of the CHIP Premium plan must be at least equivalent to the Comprehensive Standard Benefits Package.

In addition, the bill creates the MDCare Program, which is designed to provide access to affordable health insurance for citizens whose family income is below 150% of the poverty level in FY 2006 and increasing to 350% by FY 2007 whose employer does not offer health benefits.The benefits offered under the MDCare plan may not cost more than 3% of total income for an individual and 6% for family coverage.

The bill also charges the Board of the MDCare Program with creating a Maryland Quality Institute designed to develop standards of clinical practice guidelines.

In order to support the projected costs of the Program expansion, the bill increases the cigarette tax by 50%.In addition, the bill levies a tax on for-profit businesses with at least 10,000 employees that do not provide an amount at less equal to 8% of their payroll in health care.For non-profits organizations, the tax would be levied on organizations that do not spend at least 6% of payroll on health care costs.

Effective Date:July 1, 2005

For more information, please contact:Jim Kaufman

HB1182Insurance - Rate Filings - Prior Approval

The bill requires that before an HMO may have their rates adjusted, the plan shall file with the Commissioner all rates and supplementary rate information and modifications of rates prior to their use.

Effective Date:October 1, 2005

For more information, please contact:Jim Kaufman

HB1284Fair Share Health Care Fund Act

The bill creates the Fair Share Health Care Fund which is designed to receive the taxes levied on for-profit and not-for-profit organizations with greater than 10,000 employees who offer to spend less than a fixed percentage of their payroll on health care costs.The bill requires that beginning on January 1, 2006 the business must submit to the Secretary of Labor, Licensing, and Regulation the amount and percentage of payroll spent by the employer in the state on health care costs for the previous calendar year.In calculating the percentage of payroll, the employer will exempt wages paid beyond the amount taxable for Social Security and wages paid to an employee who is eligible for Medicare.

In calculating the tax, a non-profit that spends less than 6% or a for-profit that spends less than 8% of total wages on health care costs shall pay to the Secretary the difference between the percentages listed above and the actual amount paid during the previous calendar year.The bill also specifies that an employer may not reduce an employee’s wages to reflect the costs paid to the Fair Share Health Care Fund.

Effective Date:July 1, 2005

For more information, please contact:Jim Kaufman

HB1328Health Insurance - Authority of Maryland Health Insurance Plan

The bill allows the Maryland Health Insurance Plan to not only offer the standard benefit package, but to offer endorsements of a benefit package that may be purchased at the option of the enrollee.

Effective Date:October 1, 2005

For more information, please contact:Jim Kaufman

HB1386Impairment of Health Care Services Contracts

The bill proposes a constitutional amendment that would be placed on the next ballot for review by the voters.The proposed amendment would state that no contract or policy by an insurance company or HMO can impair or otherwise interfere with an agreement or contract entered into by a provider and an individual for health care services.

Effective Date:Constitutional Amendment

For more information, please contact:Jim Kaufman

[Go To Bills Introduced]


Higher Education

HB0228Higher Education - Community Colleges and Regional Higher Education Centers - Degree Programs

House Bill 228 establishes a process for a regional higher education center or community college to offer a baccalaureate degree program sponsored by an in-state or out-of-state four-year institution of higher education.

The Maryland Higher Education Commission (MHEC) must adopt regulations to implement the bill.Specifically, the bill will attempt to authorize a regional higher education center or a Community College Board of Trustees to submit to MHEC a request for proposals (RFP) to offer a baccalaureate degree program not offered in the region. Before submitting the RFP, the center or board must: (1) seek input from students and interested community groups about the program; (2) determine the regional or statewide need for graduates of the program; (3) identify enrollment patterns, characteristics of students, and other unique circumstances that would require the program to be offered in a particular manner; and (4) determine that the program is necessary to meet the academic and economic development needs of the region or State. MHEC must distribute the RFP to public and private four-year institutions of higher education.If an in-state institution does not respond to the RFP, the regional higher education center or board of trustees may submit the request to an out-of-state four-year institution of higher education. Before offering the program, an out-of-state institution’s program must be approved by MHEC.

Effective Date:October 1, 2005

For more information, please contact:Bret Schreiber

HB0349Higher Education - Teacher Education Reading Programs - Alignment with Federal Law

This bill requires public institutions of higher education that have teacher education programs to provide teacher education reading curricula that are aligned with the federal No Child Left Behind Act (NCLB). Public institutions of higher education must revise their teacher education courses to place strong emphasis on phonemic awareness, phonics, vocabulary development, fluency, and comprehension. In order to receive State funding under the Sellinger formula, private institutions of higher education that have teacher education programs must comply with the same requirements.The bill codifies the current practices of teacher education programs in Maryland institutions of higher education.

Effective Date:October 1, 2005

For more information, please contact:Bret Schreiber

HB0389Teachers - Certification - Fetal Alcohol Spectrum Disorders Course Credit

House Bill 389 requires the State Superintendent of Schools and the Professional Standards and Teacher Education Board (PSTEB) to set a minimum number of semester hours covering fetal alcohol spectrum disorders required to qualify for a Maryland teacher’s certificate.Fetal alcohol spectrum disorders are caused by mothers drinking alcohol while they are pregnant and are the leading known cause of mental retardation in children.The disorders range from fetal alcohol syndrome, the most severe disorder level, to other milder disorders such as fetal alcohol effects, alcohol-related birth defects, and alcohol-related neurodevelopmental disorders.Fetal alcohol syndrome makes up approximately 10% of the spectrum of the disorders, but disorders within other parts of the spectrum can also lead to serious social and behavioral problems.Applicants for teacher certification must complete the required semester hours.Teachers who hold certificates as of July 1, 2004 must complete the required number of semester hours as professional development credits over their next certification renewal period.

Effective Date:July 1, 2005

For more information, please contact:Bret Schreiber

HB0444Income Tax Reform - Revenues for Higher Education

House Bill 444 establishes the Public Higher Education Fund to supplement General Fund appropriations to public senior higher education institutions.To fund the additional appropriations to public higher education institutions, the bill increases the State income tax rate to 5.25% on individuals with Maryland taxable income exceeding $200,000 (single) and $250,000 (joint returns).

Effective Date:July 1, 2005

For more information, please contact:Bret Schreiber

HB0548Tax Credit for Employer-Established Paid Work-Based Learning Programs for Students

House Bill 548 authorizes eligible parties to establish an approved paid work-based learning program under which arrangements are made between schools and employers to provide students with structured employer-supervised learning.The bill also allows a credit for employers who employ students against the State income tax or the insurance premiums tax for wages paid to each student under an approved program.The program also requires integration with classroom instruction to result in the acquisition for the student of at least one unit of academic credit.

Effective Date:July 1, 2005

For more information, please contact:Bret Schreiber

HB0731Higher Education - State Plan - Mission Statements - Quadrennial Review

House Bill 731 requires the Maryland Higher Education Commission to submit a review of the State Plan for Higher Education to the Governor and to the General Assembly every 4 years instead of every 2 years.The bill also requires that the President of each public institution of higher education update the institution's mission statement within a year of the review of the State Plan for Higher Education and also requires regional higher education centers to update the center's mission statement within a year of the review of the State Plan for Higher Education.

Effective Date:July 1, 2005

For more information, please contact:Bret Schreiber

HB0869Income Tax Credit - Teachers in Nonpublic Schools Approved by MSDE for Students in Nonpublic Placements

House Bill 869 allows teachers in nonpublic schools approved by or registered with the State to claim a credit against the State income tax for up to $1,500 of tuition paid by the teacher for graduate level education required to maintain certification.

Effective Date:July 1, 2005

For more information, please contact:Bret Schreiber

HB0964Higher Education - Public Institutions of Higher Education - Academic Bill of Rights

House Bill 964 requires a public institution of higher education to develop guidelines prohibiting a faculty member from using the member's courses for political, ideological, religious, or antireligious indoctrination. The bill also prohibits the governing body of a public institution of higher education from hiring, firing, or excluding a faculty member from tenure based on the faculty member's political or religious beliefs.

Effective Date:October 1, 2005

For more information, please contact:Bret Schreiber

HB0985Child Welfare Caseworkers Scholarship and Loan Assistance Repayment Program - Establishment and Regulation

House Bill 985 establishes the Child Welfare Caseworkers Scholarship and Loan Assistance Repayment Program.The bill provides that the Office of Student Financial Assistance within the Maryland Higher Education Commission will set the criteria as to who qualifies and how these awards are to be administered.

Effective Date:July 1, 2005

For more information, please contact:Bret Schreiber

HB1236Higher Education - Community Colleges - Students with a Documented Disability

House Bill 1236 allocates $2,500,000 to the Maryland Higher Education Commission to be distributed to community college boards and to the Baltimore City Community College Board of Trustees for students with a documented disability.The Community Colleges will use the funds to meet the documented needs of students with disabilities.

Effective Date:July 1, 2005

For more information, please contact:Bret Schreiber

SB0344Education - General Assembly Scholarships - Modification of Programs

Senate Bill 344 alters the Senatorial and Delegate Scholarship Programs to require that the moneys appropriated under the programs be awarded by the Office of Student Financial Assistance in the Maryland Higher Education Commission.The bill requires the Office to ensure that the awards are distributed to ensure awards are granted to a diverse student population.

Effective Date:July 1, 2005

For more information, please contact:Bret Schreiber

SB0547Robert Kittleman Scholarship Reform Act

Senate Bill 547 eliminates the Senatorial Scholarship and Delegate Scholarship Programs and creates a new legislative scholarship program in the State.The bill utilizes the money appropriated for the Senatorial and Delegate Scholarship and allows the legislator in a specific district to appropriate 30% of the funds based on criteria determined by the legislator and 70% of the funds to be appropriated by the Maryland Higher Education Commission based on need in each legislator's district.

Effective Date:July 1, 2005

For more information, please contact:Bret Schreiber

[Go To Bills Introduced]


Long Term Care/Nursing Homes

HB0893Nursing Homes and Assisted Living Facilities - Quality of Care Oversight

The bill changes the name, membership and duties of the existing Oversight Committee on Quality of Care in Nursing Homes.It will be renamed the Oversight Committee on Quality of Care in Nursing Homes and Assisted Living Facilities.Representatives of the following organizations will be added to the membership:

1)     Maryland Chapter of AARP,

2)     United Seniors of Maryland,

3)     Mental Health Association knowledgeable in elderly issues,

4)     Greater Maryland Chapter of Alzheimer's Association,

5)     Small Assisted Living Alliance, and

6)     Maryland Small Assisted Living Association.

Also added will be two consumers, one of whom will be living in an assisted living facility.

The committee will be charged to evaluate the progress in improving nursing home care quality and assisted living facility quality statewide, including the standards for the identification of the onset of dementia and Alzheimer's Disease.

Effective Date:October 1, 2005

For more information, please contact:Sheila Higdon

[Go To Bills Introduced]


Medicaid

HB1366Managed Care Organizations - Adjustment to Capitation Payments - Quality Improvement Incentive

The bill states that the Secretary of Health, in consultation with the Insurance Commissioner, may adjust compensation rates as a quality improvement incentive based on MCO performance on a core set of measures. The bill also deletes the 85% Medical Loss Ratio and requires the Secretary to adopt through regulation, a core set of performance measures to include quality measures and performance targets, along with a methodology for withholding capitation payments.

Effective Date:July 1, 2005

For more information, please contact:Jim Kaufman

SB0707Medicaid Quality Improvement Act of 2005

The bill authorizes the Secretary of Health, in consultation with the Insurance Commissioner, to adjust capitation rates paid to an MCO based on violation of the 85% Medical Loss Ratio if the plan violates quality measures.To adjust capitation rates, the bill requires:

1.      the Secretary of Health to calculate the MLR that will serve as the basis for adjustment;

2.      the MLR will be based on the audited HealthChoice Financial Monitoring Report filed by the MCO;

3.      the MLR will calculate medical administration expenses of the MCO as an element of medical expenses; and

4.      the Secretary to use a 3-year average MLR.

Prior to implementing an adjustment in rates, the Secretary is required to consult with the Insurance Commissioner, submit the calculation of the MLR to the Commissioner for verification, and obtain from the Commissioner that the imposition of an adjustment would not impair the financial condition of the MCO.

In calculating the amount of the rate adjustment, the first year adjustment shall equal the lesser of 50% of the difference between the actual capitation paid and the capitation rate that would have generated an 80% MLR or 25% of the net income of the MCO for the year in which MLR was calculated.In the second year, the adjustment shall equal the less of 75% of the difference between the actual capitation paid and the rates that would have generated an 80% MRL or 35% of the net income of the MCO for the year in which MLR was calculated.For each year thereafter, the adjustment shall equal 50% of the average net income of the MCO for the year in which the MLR was calculated.

The bill requires that in exercising discretion to make the adjustment, the Secretary may not make the adjustment unless it is determined that the objectives of the HealthChoice Program would be advanced by the adjustment.

In addition, the bill requires that an adjustment may not be made if:

1.      the 3-year average MLR of the MCO is less than 85%, but equal to or greater than 80%, and

2.      the service count ratio (which is the number of services compared to the average yearly enrollment) for the MCO is at or above the average MCO service count ratio, or the MCO achieved an acceptable score for all elements of the quality performance initiative or achieved at least as many “incentive” scores as “disincentive” scores.

The bill also creates the Quality Performance Initiative which includes a core set of performance standards.The measures will be:

-          relevant to and in proportion to the populations served by the MCO,

-          accommodating to the differences among plans in terms of structure, health care delivery system, and population served,

-          developed in consultation with experts in the field of health quality,

-          based on absolute rather than relative performance, and

-          grouped into “Acceptable”, “Incentive”, and “Disincentive” categories.

The bill requires that before the Act may be implemented, the Secretary must adopt regulations on or before December 31, 2005.

Effective Date:July 1, 2005

For more information, please contact:Jim Kaufman

SB0769Health Insurance - Tax on Premiums of Health Maintenance Organizations and Managed Care Organizations - Repeal

The bill repeals the premium tax from any HMO authorized to provide benefits to the extent the premiums are paid to a non-profit HMO and deletes the requirement that gross receipts paid to an MCO be taxed.The bill also repeals the requirement that MCOs report their gross receipts to the Insurance Commissioner and revises the funding amounts available to the Maryland Medical Professional Liability Insurance Rate Stabilization Fund and Medical Assistance Program.

Effective Date:July 1, 2005

For more information, please contact:Jim Kaufman


[Go To Bills Introduced]

Miscellaneous

HB0489Workers' Compensation Commission - Decisions and Orders - Requirements

This bill adds to �9-308.of the Labor & Employment Article.A decision or order of the Commission shall include written findings of fact and conclusions of law setting forth the rationale for the decision or order.

Effective Date:October 1, 2005

For more information, please contact:Heather Barthel

HB0515Workers' Compensation - Evaluation of Permanent Impairments

This bill adds a new subsection to the Labor & Employment Article � 9-721.A physician shall medically evaluate a permanent impairment using the most recent edition of the American Medical Association's guides to the evaluation of permanent impairments, as amended.The Commission shall adopt regulations that govern the reporting of a physician's medical evaluation of a permanent impairment to the Commission.

Effective Date:October 1, 2005

For more information, please contact:Heather Barthel

HB0614Certification and Procurement - Environmentally Compliant Manufacturers of Computers

This bill adds a new section - � 9-282 - to the Environment Article.A manufacturer may submit an environmental compliance plan to the Department.The environmental compliance plan shall include a description of the actions taken and planned by the manufacturer to design computers so that the computer is easier to recycle and contains less hazardous materials.It shall also include a description of any recycling effort conducted or supported by the manufacturer, including recycling contracts with businesses located in the state and any information required by the Department in regulation.

After review of a manufacturer's environmental compliance plan, if the Department determines that the manufacturer has demonstrated that it has a comprehensive and sufficient environmental compliance plan, the Department shall certify the manufacturer as environmentally compliant.

The bill also adds to �14-601 of the State Finance and Procurement Article.No later than January 1, 2006, the Board shall adopt regulations that require each state unit to establish a percentage price preference, not to exceed 5%, for the purchase of computers from a certified manufacturer.On or before January 1, 2006, each state unit shall review the procurement specifications for computers currently used by the unit and, to the extent practicable, require the use of a percentage price preference for the purchase of computers from a certified manufacturer.To encourage the maximum purchase of computers from a certified manufacturer, the Department of the Environment shall establish a list of certified manufacturers.

Effective Date:July 1, 2005

For more information, please contact:Heather Barthel

HB0634Workers' Compensation - Uninsured Employers - Penalties

This bill amends �9-1107 and �9-1108 of the Labor & Employment Article.It increases the fine for failure to secure payment of compensation from $5,000 to $10,000 and imprisonment from 1 year to 5 years.It also provides that the Uninsured Employers' Fund shall file a statement of charges in District Court against an employer who is alleged to have committed a violation of this section, unless the Uninsured Employers' Fund determines that it is not in the public interest to file a statement of charges against the employer, certifies in writing the reasons for its determination, and keeps a copy of the written certification on file and makes the copy available for public inspection.

The Uninsured Employers' Fund shall state in its annual report submitted to the Governor the number of employers alleged to have committed a violation and the number of statements of charges filed in district court against employers alleged to have committed a violation.

Effective Date:October 1, 2005

For more information, please contact:Heather Barthel

HB0635Workers' Compensation - Permanent Partial Disability - Petition to Reopen

This bill adds to the definition of “Accidental personal injury” in �9-101 of the Labor & Employment Article.By including an accidental injury that arises from an identifiable incident occurring at some reasonably definite time and directly causes an obvious, sudden mechanical or structural change in the body.

Effective Date:October 1, 2005

For more information, please contact:Heather Barthel

HB0636Workers' Compensation - Accidental Personal Injury - Definition

This bill adds to the definition of “Accidental personal injury” in �9-101 of the Labor & Employment Article.By including an accidental injury that arises from an identifiable incident occurring at some reasonably definite time and directly causes an obvious, sudden mechanical or structural change in the body.

Effective Date:October 1, 2005

For more information, please contact:Heather Barthel

HB0668Workers' Compensation - Jurisdiction of Commission Pending Appeal - Temporary Total Disability

This bill amends �9-742 of the Labor & Employment Article.The bills adds that the Commission retains jurisdiction pending an appeal to consider a request for temporary total disability benefits, provided that the covered employees claim has been found as compensable by the commission.The bill deletes the provision that states that the employee's temporary total disability benefits were granted in the order on appeal, and were terminated by the insurer or self-insurer pending adjudication or resolution of the appeal.The bill makes other technical changes.

Effective Date:October 1, 2005

For more information, please contact:Heather Barthel

HB0966Department of Housing and Community Development - Neighborhood Business Development Program - Community Development Financial Institutions

House Bill 966 authorizes the Department of Housing and Community Development to provide financial assistance to community development financial institutions under the Neighborhood Business Development Program.The bill requires the Department to use the Neighborhood Business Development Fund to provide financial assistance to community development financial institutions to help develop, redevelop, or expand a small business, microenterprise, or low-income to moderate-income housing development.

Effective Date:October 1, 2005

For more information, please contact:Bret Schreiber

HB1060Cancer Drug Repository Program

The bill requires the State Board of Pharmacy to establish a Cancer Drug Repository Program under which any person may donate a cancer drug and supplies for use by an individual who is a resident of the State and meets eligibility requirements established by the Board. The Program may only accept and dispense drugs in unit dose packaging and if their expiration date is less than 6 months from the date the drug is donated.Donated drugs must be in their original unopened, sealed and tamper evident packaging.Any person may donate the drugs, and they may only be donated at a pharmacy, hospital, or nonprofit clinic that participates in the Program.

A pharmacy, hospital, or nonprofit clinic that accepts donated drugs shall comply with all applicable laws relative to storage and distribution of such drugs.Although the pharmacy, hospital or nonprofit clinic may charge a handling fee to the individual receiving the drugs, the donated drugs may not be resold.

The bill also stipulates that the Board, in consultation with the Secretary of Health and Mental Hygiene, shall adopt regulations governing the Program.

Effective Date:October 1, 2005

For more information, please contact:Sheila Higdon

[Go To Bills Introduced]


Public Health

SB0332Clean Indoor Air Act of 2005

In order to "protect the public and employees from involuntary exposure to environmental tobacco smoke in indoor areas open to the public, indoor places of employment, and certain designated private areas" as well as to "preserve and improve the health, comfort and environment of the people of the state by limiting exposure to environmental tobacco smoke", SB332 prohibits, with certain exceptions/exemptions, a person from smoking in:

1-     an indoor area open to the public;

2-     an indoor place in which meetings are open to the public;

3-     a government owned or operated means of mass transportation including buses, vans, trains, taxicabs, and limousines; or

4-     an indoor place of employment.

SB 332 also mandates placement of signs, enforcement and fines related to smoking permission/prohibition.

Effective Date:October 1, 2005

For more information, please contact:John Safapour

[Go To Bills Introduced]


Research/Human Subject

HB0086Public Health - Children and Pregnant Women - Mercury and Heavy Metal-Free Vaccines and Injections

HB 86 prohibits the vaccination with a vaccine or the injection of a product that contains mercury or other heavy metals into an individual under the age of 3 years or a woman who is known to be pregnant.The purpose of HB 86 is to protect the health of maternity, infancy and early childhood.

Effective Date:October 1, 2005

For more information, please contact:John Safapour

HB1356Public Health - Adult Stem Cell Research Program

The bill requires the Governor to include $25 million annually in the State budget for the Adult Stem Cell Research Program.The program shall support biomedical research using adult stem cells that have been recommended by the State’s Institutional Review Board established by the Secretary of Health.The definition of adult stem cells is an undifferentiated cell found among differentiated cells in a tissue or organ that can renew itself and can differentiate to create major specialized cell types of the tissue or organ in which the cell was found.

Effective Date:October 1, 2005

For more information, please contact:Jim Kaufman

SB0751Maryland Stem Cell Research Act of 2005

The bill authorizes stem cell research in the State of Maryland to include the derivation and use of human embryonic stem cells, human embryonic germ cells, and human adult stem cells from any source including Somatic Cell Nuclear Transplantation (SCNT).The bill also creates a $25 million Stem Cell Research Fund, to be supported by the Cigarette Restitution Fund and be subject to an annual appropriation, to promote scientific and medical stem cell research.

In order to receive support from the fund, an applicant will submit a proposal to the Maryland Scientific Peer Review Committee, which will be comprised of 10 members, 2 selected by each of the following: the Secretary of Health, the Secretary of Business and Economic Development, Johns Hopkins University, University System of Maryland, and the Maryland Bioscience Alliance.The committee is required to establish procedures for grant review that are based on the guidelines of the federal National Institutes of Health, to include ranking and rating system.

The peer review committee will recommend to a Stem Cell Research Commission the projects to be funded based on the ranking and rating system.The 13-member Commission will be comprised of the following: Secretary of Health, Attorney General, Secretary of Business and Economic Development, Treasurer, State Comptroller, and members appointed by the Governor with expertise in biomedical ethics, one who works as a scientist and engages in stem cell research from University of Maryland and Johns Hopkins, and two consumer members.Grants are contingent upon approval of an Institutional Review Board.

The bill requires a health care provider who is treating an individual for infertility to provide information on options to store, discard, donate for the treatment of infertility, or donate for the use in medical research unused human embryos or eggs.

Finally, the bill bans human cloning, which is defined as the replication of a human being through the production of a precise genetic copy of human DNA or any other human molecule, cell, or tissue in order to create a new human being.A person who attempts to conduct human cloning is subject to a felony conviction with a sentence not to exceed 10 years imprisonment, a fine not to exceed $200,000 or both.

Effective Date:October 1, 2005

For more information, please contact:Jim Kaufman

[Go To Bills Introduced]


Taxes/Tax Policy

HB0342Corporate Income Tax and Vehicle Rental Excise Tax - Revenue Distribution

House Bill 342 alters the distribution of the income tax revenue from corporations, the distribution of the revenue collected from the sales and use tax on short-term vehicle rentals, and diverts those distributions into the Transportation Trust Fund in an effort to replenish the fund for state-wide transportation projects.

Effective Date:July 1, 2005

For more information, please contact:Bret Schreiber

[Go To Bills Introduced]


Tort Reform

HB0048Patient Protection Insurance

This bill adds �10-122.1 to the Insurance Article.The bill allows the Maryland Insurance Commissioner to issue a limited lines license to a physician who sells policies of patient protection insurance in the office of the physician to patients of the physician.A limited lines license authorizes the holder to act as an insurance producer only as to policies of patient protection insurance.The Commissioner may require and provide special forms requiring information the Commissioner considers proper in connection with the application for renewal of limited lines licenses.

Effective Date:October 1, 2005

For more information, please contact:Heather Barthel

HB0512Medical Injury Compensation - Claimant Recovery

This bill adds a new section to the Courts and Judicial Proceedings Article � 3-2A-07.1.It defines "recovered" as the net sum recovered by the claimant after deducting any disbursements or costs incurred in connection with prosecution or settlement of the claim.Costs of medical care incurred by the claimant and the attorney's office-overhead costs or charges are not deductible disbursements or costs.A person having a claim against a health care provider for damages due to a medical injury occurring on or after January 1, 2005, is entitled to not less than 70% of the first $250,000 recovered; and 90% of any amount recovered in excess of $250,000.

The requirements established in this bill apply regardless of whether the amount recovered is by settlement, award, or verdict, whether the person for whom the amount is recovered is a responsible adult, a minor, or a person who is mentally incompetent or the number of defendants involved in the claim.An attorney who violates this section is subject to disbarment, suspension, or other disciplinary action in accordance with Maryland rules.

Effective Date:Emergency Measure (Effective upon enactment)

For more information, please contact:Heather Barthel

HB0814Circuit Courts - Medical Malpractice Review Panel Pilot Program

This bill creates � 3-2A-06E in the Courts & Judicial Proceedings Article.This section applies only in the circuit court for Baltimore County.The court of appeals shall establish a Medical Malpractice Review Panel Pilot Program in the circuit court for Baltimore County.Within 15 days after all parties have filed the supplemental certificate of a qualified expert with the court, an action filed under this subtitle in Baltimore County shall be submitted to a medical malpractice review panel for its review and decision.

The circuit court for Baltimore County or the United States district court in which the initial complaint is filed shall refer the action to the county administrative judge. The county administrative judge shall appoint a circuit court judge or a retired circuit court judge of the third judicial circuit to chair the panel. The county administrative judge shall send notice, by certified mail, to the plaintiff and the defendants named in the action of the procedures of the medical malpractice review panel and the name of the circuit court judge or retired circuit court judge appointed to chair the panel.

All time limits under this subtitle or the Maryland rules applicable to an action shall be suspended from the date on which the complaint is referred to the county administrative judge until 30 days following the day the parties and the court receive the decision of the panel.

Within 20 days after the referral of the complaint, the chair shall choose five individuals from a health care provider list and send the list together with a brief biographical statement for each individual, by certified mail, to each party. The biographical statements sent to the parties under this subsection shall have been updated within 2 years. Each individual chosen by the chair shall have clinical experience or academic experience in the same or related specialty as the defendant, or in the field of health care in which the defendant provided care or treatment to the plaintiff.Before naming an individual, the chair shall inquire of the individual and be assured that the individual does not have a personal or economic relationship with any of the parties or their counsel, or in any cases that can form the basis of any partiality on their part. If, in the judgment of the chair, an individual has such a relationship with a party, the chair shall replace that individual's name with another individual from the list. An individual chosen by the chair may not reside in Baltimore County.Within 15 days after receiving the list, each party may strike one name from the list and return the list to the chair.

If the complaint is against more than one defendant, whether directly by a plaintiff or as a result of a third-party claim, the defendants claimed against shall be treated as a single party and shall exercise their strike jointly.If there is more than one plaintiff, the plaintiffs shall be treated as a single party and shall exercise their strike jointly.If, within the time period specified, multiple plaintiffs or multiple defendants fail to agree on their strike, they shall notify the chair of their disagreement, and the chair may make the strike on their behalf.If any party fails to return a copy of the list with the strike made within the time period specified, the chair may make the strike for that party.

The chair shall appoint the membership of the panel after receiving the strikes of the plaintiff and defendant.Service by a health care provider on a panel may not be considered a professional activity that directly involves testimony in personal injury claims.

Within 15 days of the appointment of the panel, a chair shall notify the parties of the membership of the panel and convene the panel in an initial conference.At the initial conference, the chair shall establish a schedule for the filing of all relevant records and reasonable discovery which shall be filed at least 30 days before the hearing date.A hearing on the action shall be held no later than 60 days from the date of initial conference.

The Maryland rules do not apply to the admission of evidence under this section.The hearing shall be closed to the public.The deliberations and discussion of a panel and the testimony of an expert, whether called by a party or the panel, shall be privileged and confidential.

The chair shall convene the panel, schedule hearings, and preside over the panel's meetings; establish a schedule for submission of evidence to the panel; may adjourn the hearing from time to time, as necessary; shall expedite the panel's review of the medical evidence; shall decide issues relating to discovery and motions in limine; advise the panel on issues of law that arise during the review; and prepare the decision of the panel.A chair may not vote in the deliberations of the panel.

A panel shall determine, after a hearing held if the evidence presented and properly substantiated is sufficient to raise a legitimate question that the defendant's actions or omissions were a departure from the appropriate standard of care as charged in the plaintiff's complaint, and the defendant's actions or omissions proximately caused the plaintiff's alleged injury.

At the hearing, the plaintiff shall present the complaint to the panel and the defendant may make a presentation in response. After the presentations by the parties, the panel may request from either party additional facts, records, or other information to be submitted in writing.The panel may subpoena any records or any expert necessary to substantiate or clarify evidence presented in the hearing. The panel may appoint an impartial and qualified health care provider to conduct necessary professional or expert testimony of the parties or the parties' witnesses.Properly authenticated hospital records and the records of a treating health care provider are admissible without the necessity of calling the health care provider, subject to reasonable notice and the right of the opposing party to depose the health care provider.At the panel hearing, the parties have the right to be heard, to present evidence material to the complaint, and to cross-examine witnesses who appear at the hearing.

A panel shall issue its written decision within 30 days of the hearing. The decision shall answer the following questions:

1.      Whether there is a reasonable medical or professional probability that the acts or omissions complained of or found by the panel to exist constitute a departure from the applicable standard of care by the health care provider charged with that care; and

2.      Whether there is a reasonable medical or professional probability that the acts or omissions complained of proximately caused the injury complained of or as found by the panel.

The panel's decision, signed by the panel members, shall be served by certified mail on the court and the parties within 5 days of the date of issuance of the decision.Unless otherwise agreed by the parties, the costs of the hearing and reasonable expenses of review shall be divided equally between the parties. A party may reject the decision of the panel issued for any reason.The party rejecting the decision shall file a notice of rejection with the chair and the administrative judge of Baltimore County or the United States District Court and serve the notice on the other party within 30 days of receiving the decision.On receiving the notice of rejection, the court shall reinstate the complaint to the active trial list and lift the suspension of time limits.

Both parties may accept the decision of the panel. If both parties accept the decision, both parties shall move to dismiss the complaint filed in court within 30 days of receiving the decision. The panel's decision is admissible as evidence in a subsequent trial.A unanimous decision of the panel on either or both questions shall be accorded a presumption of correctness in a subsequent trial of the case. Either party has the right to call a member of the panel as a witness in a subsequent trial. A party that is the losing party in a decision before a panel under this section and in a subsequent trial is responsible for costs in accordance with Maryland Rule 2-603 and paying the reasonable attorney fees of the prevailing party.

A party that is the prevailing party in a decision before a panel but is the losing party in a subsequent trial is responsible for costs in accordance with Maryland Rule 2-603.

An individual who serves as a member of a panel under this section shall have the immunity from suit. The bill also amends �5-615.This subsection applies only in Baltimore County.It states that in the absence of an affirmative showing of malice or bad faith, each member of a medical malpractice review panel conducting review in a health care malpractice claim or action from the time of acceptance of appointment has immunity from suit for any act or decision made during tenure and within the scope of designated authority.

Effective Date:June 1, 2005

For more information, please contact:Heather Barthel

HB0819Volunteer Health Care Practitioners - Liability

This bill adds to section �5-606 by defining "Health Care Practitioner" as an individual who is licensed, certified, or otherwise authorized under the health occupations article to provide health care services in the ordinary course of business or practice of a profession.A health care practitioner who provides health care services at any site voluntarily and without compensation to a patient of a clinic that is organized in whole or in part for the delivery of health care services without charge is not liable for any amount in excess of any applicable limit of insurance coverage in any suit for civil damages for any act or omission resulting from the provision of the services unless the act or omission constitutes willful or wanton misconduct, gross negligence, or intentionally tortious conduct.

Effective Date:October 1, 2005

For more information, please contact:Heather Barthel

HB0890Health Care Malpractice Claims - Physician Assistants

This bill amends �3-2A-01 of the Courts & Judicial Proceedings Article by including a Physician Assistant to the definition of “Health care provider”.

Effective Date:July 1, 2005

For more information, please contact:Heather Barthel

[Go To Bills Introduced]


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