Legislative Hotline
2005 SESSION OF THE
MARYLAND GENERAL ASSEMBLY
Volume 13, Number 8����������������������������������������������������������������������������������������������� March 23, 2005
Here are some of the hot issues as the 2005
Legislative Session develops:
DEPARTMENT OF HEALTH AND MENTAL HYGIENE
UNIVERSITY OF MARYLAND MEDICAL SYSTEM
The House and Senate are preparing to move different
versions of the FY 2006 operating budget.�
In addition to the budget bill, the two chambers are also moving the
Budget Reconciliation and Financing Act and actions on the Governor’s
Supplemental Budget #1.� Due to the
various differences, below is a brief summary of various actions of each
chamber that will be resolved during an upcoming conference committee.
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Department
of Health and Mental Hygiene
The House and Senate have
adopted language requesting the Department to examine efforts to centralize
administration of the various health professional boards to reduce costs.� However, the Senate accepted an additional
$63,518 budget reduction to the Board of Pharmacy for increased staffing.
The base budget includes several costs containment
actions, which the General Assembly cannot act on, that include the
continuation of $60 million in hospital day limits, a 1% or $15 million
reduction in
The House and Senate accepted several reductions in
the Medicaid program including a $31 million reduction for funds allocated to
physician fee increases.� These funds
were duplicative of the special fund created by HB 2 of the Special Session, a
portion of which is dedicated to Medicaid physician fee increases.� In addition, the budget was reduced by $46.0
million for the
The House and Senate adopted budget bill language
that requires $6.2 million be used only for the purchase of case management
services for individuals who qualify for the Rare and Expensive Case Management
Program (REM).� The language clarifies
that no portion of this funding may be provided to MCOs
unless the REM participants voluntarily choose to enroll in an
The House and Senate have adopted language
restricting $8 million until the Department selects a minimum of 8 quality
measures and minimum performance targets for MCOs.� The language also requires the Department to
withhold these funds from MCOs during the CY 2006
rate setting process and adopt procedures to pay MCOs
that meet or exceed the performance targets.
The Senate adopted language restricting $1.5 million
of the Medicaid budget to provide State funded Medicaid services for pregnant
woman who are legal immigrants, but do not qualify for federally funded
Medicaid.� The language attempts to
restore state funding for prenatal services for legal immigrants.
The Senate adopted language restricting almost $900
million for payments to nursing homes in an attempt to reduce the projected $42
million in nursing home reductions to $32 million.
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The Senate accepted a $609,003
budget reduction to core public health services provided by the Department,
reducing the FY 2006 appropriation to the FY 2005 funding level.
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Over the past week, there has been action from the
Governor and the General Assembly surrounding the Cigarette Restitution Fund
(CRF), and specifically the cut to the FY2006 cancer research grants.� Governor Ehrlich submitted Supplemental
Budget I, which contains language to restore the grants to Johns Hopkins and
the
The Appropriations Committee
adopted language authorizing the Governor to appropriate up to $7.7 million in FY2006 for grants to each of the
academic health centers.�
According to legislative services, this amount was left in the FY2006
CRF budget; it would not be taken from any other CRF program.
The Budget and Taxation
Committee took a different approach, adopting language that directs the
Governor, beginning in FY2007 and each fiscal year thereafter, to include at
least $10.4 million in the annual budget for the cancer research grants to
Johns Hopkins and the
B&T also included a
provision that directs the Governor to include at least $2 million for the
Tobacco-Related Diseases Research Grant to the
Additional
BRFA actions on CRF by both committees includes the following:
- Permanently modify Statewide Academic Health Center Public Health
Grants so that the
- Reject the delay of the comprehensive evaluation of the CRF
program; authorize the appropriation of $1 million in CRF funds for this
purpose.
- Postpone Tobacco Study by one year
- Reject the recommendation to reduce funding for activities aimed at
reducing tobacco use in CRF from $21 million to $10 million -
permanently.� Instead, reduce for
FY2006 only.� (Failure to reduce the
funding would have resulted in transferring $10 million for the cancer
program to the tobacco program).
- Mandate that 30% of CRF revenues are used to support Medicaid on a
permanent basis.� Current law
requires 25% for this purpose, but in reality far more is appropriated for
Medicaid from CRF.� In the proposed
FY2006 budget, 54% is used for Medicaid.
The actions of both budget
committees will be addressed on the floors of their respective chambers over
the coming weeks.
The House reduced the
General Fund appropriation for CRF program administration by $211,357, half of
the funded amount, while adding language allowing these funds to be replaced
with CRF special funds, thereby increasing administration from 5% to 7%.� However, the Senate accepted the entire
$422,714 reduction.�� Meanwhile, the
Senate accepted budget bill language that requires UM Medical Group to use
$300,000 to be expended for cancer treatment identified through the public
health program.� In addition the
committees requested the Department of Health and Mental Hygiene to develop a
report, in consultation with UMMG, on the cost of breast and cervical cancer
screenings in
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The House added language
requiring the Department to examine the use of Residential Treatment Centers
and the impact of access due to budget and staff reductions.� This language was rejected by the
Senate.� Meanwhile, both the House and
Senate accepted a $1 million reduction due to the replication of a capitated program currently operating in
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The House accepted a
recommendation to reduce the appropriations for UM Medical System by $1 million
to $7.1 million by removing funding for the facility renewal at the R Adams
Cowley Shock Trauma Center.� However, the
Senate rejected the reduction, but added language stating that FY 2006 shall be
the final year the State will subsidize capital expenses at Shock Trauma.� However, the Senate accepted a $221,422
reduction for the Montebello Rehabilitation Program at
For more information on any
of the above articles, please contact: Jim Kaufman or Sheila Higdon
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
410-269-0057
fax 410-269-1574
Heather Barthel������������������� [email protected]
Mickey Geisler��������������������� [email protected]
Matt Greenwood������������������ [email protected]
Sheila Higdon��������������������� [email protected]
Jim Kaufman����������������������� [email protected]
John Safapour�������������������� [email protected]
Bret Schreiber��������������������� [email protected]
Cathy Ximenez������������������� [email protected]
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