Johns Hopkins Institutions

Legislative Hotline

2005 SESSION OF THE
MARYLAND GENERAL ASSEMBLY

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

Capital Budget Introduced

MICUA Capital Grants

Sellinger Aid

Additional Details for the FY 2006 Operating Budget

Medicaid Hearing

Medical Malpractice Reform

BILLS INTRODUCED
STAFF CONTACT INFORMATION

ï¿½Capital Budget Introduced

On Wednesday Governor Ehrlich introduced the $947.5 million FY 2006 capital budget and five-year capital improvement plan.ï¿½ The capital budget focuses almost 75% of available funding for education, health, and the environment.ï¿½ Two projects requested by Johns Hopkins Medicine are included in the budget for a total state commitment of $50 million over five years to support both the Children’s & Maternal Hospital and Cardiovascular & Critical Care Towers.ï¿½ For FY 2006, each of these projects is scheduled to receive $5 million, if approved by the General Assembly.ï¿½ In addition to the state support for the East Baltimore campus redevelopment, the Governor’s budget includes $5 million for East Baltimore Development, Inc., which is leading the effort to construct new housing and a life sciences and technology park north of the Hopkins East Baltimore Campus.ï¿½ Below is a table summarizing major projects included in the capital budget.

Project (in millions)	FY 2006	FY 2007	FY 2008	FY 2009	FY 2010
Johns Hopkins Medicine
Cardio. & Critical Care	$5.0	$5.0	$5.0	$5.0	$5.0
Pediatric Trauma	ï¿½ 5.0	ï¿½ 5.0	ï¿½ 5.0	ï¿½ 5.0	ï¿½ 5.0
University of Maryland Medical Center
Treatment Facilities (III)	10.0	2.5	5.0	2.5
Ambulatory Care Center	5.0	2.5	5.0	10.0	10.0
University of Maryland, Baltimore
UMB – Dental School	1.2
UMB – Pharmacy Hall			2.2	2.7	32.0
Other Projects
East Baltimore Bio Tech	5.0	5.0	5.0	5.0	5.0
Westside Redevelopment	5.0	5.0	5.0	5.0	5.0
Great Blacks in Wax	1.3
KKI – Research Ctr.	1.0	1.0	1.0	1.0
MD Hospital Association		5.0	5.0	5.0	5.0
Sheppard Pratt Hospital	2.0	1.0
Our Daly Bread	4.0	1.0

It should be noted that two groups of projects were excluded from the capital budget as introduced.ï¿½ Traditionally, the Governor’s budget includes approximately $15 million for legislative initiatives and $5 million for the Maryland Hospital Association Bond program.ï¿½

For more information, please contact Jim Kaufman.

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MICUA Capital Grants

As part of the FY 2006 capital budget plan, the Governor provided $8 million for three capital projects at MICUA member institutions:

Johns Hopkins University - Computational Science Center -- $2.75 million

Loyola College in Maryland - Renovate and Expand the Library -- $2.75 million

Maryland Institute College of Art - Mt. Royal Station -- $2.5 million

The Governor also included in his five-year capital plan $8 million annually for Maryland's independent colleges and universities.ï¿½ Last year the Governor's five-year plan provided $6 million annually for the independent institutions.ï¿½ This was not reported last week.ï¿½

For more information, please contact Bret Schreiber.

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Sellinger Aid

As reported last week, the Governor provided a 2% increase for Sellinger in his FY 2006 allowance.ï¿½ Even with this increase Sellinger is still not at the full statutory level.ï¿½ There is a push by legislative leadership at this time to potentially to restore Sellinger Program either partially or in its entirety.ï¿½ If this comes to fruition and the program is restored in its entirety it would be $46 million, a 32% increase over fiscal 2005.ï¿½

For more information, please contact Bret Schreiber.

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Additional Details for the FY 2006 Operating Budget

While the FY 2006 operating budget was released last week and details of each budget allocation will not be available until the budget hearings, additional information is now available about budget reductions.ï¿½ For the health care community, the following reductions are imbedded in the budget:

ï¿½ Continuation of the Medicaid day limits on hospitals, totaling $40 annually

ï¿½ 1% reduction to Medicaid Managed Care Organizations capitation rates

ï¿½ $42 million reduction in total funds for nursing homes, comprising $18 million in reductions that will be continued and $24 in additional cuts

ï¿½ Elimination of the Rare and Expensive Case Management Program (REM) in Medicaid, shifting these patients to HealthChoice with a corresponding $6 million reduction

ï¿½ Elimination of inflation adjustment for adult day care programs

ï¿½ Medical review of vent patients in chronic hospitals

ï¿½ Elimination of the legal aliens health care program that impacts 4,000 individuals, 700 of whom are pregnant woman

For more information, please contact Jim Kaufman.

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Medicaid Hearing

On Tuesday, the Administrative, Executive, and Legislative Review Committee (AELR), held a hearing on the proposed Medicaid regulations that include the CY 2005 Medicaid Managed Care Organizations (MCO) capitation rates.ï¿½ Originally, all seven MCOs agreed to testify, addressing only those issues that affect all of the plans.ï¿½ However, shortly before the hearing, the for-profit plans decided not to testify.ï¿½ As a result, Priority Partners, Maryland Physicians Care, and Helix Family Choice testified requesting the committee hold the regulations until the Department of Health addressed: (1) the 2% HMO tax that was applied to MCOs during the special session that are not included in the regulations, (2) efforts by the HSCRC to realign rates at Maryland hospitals, and (3) a 1% reduction in MCO rates included in the FY 2006 budget.ï¿½ The committee voted to hold these regulations until its next meeting scheduled for February 10, 2005.

For more information, please contact Jim Kaufman

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Medical Malpractice Reform

To date 13 bills have been introduced regarding medical malpractice reform.ï¿½ï¿½ Some of the initiatives include limited immunity for emergency room providers, full apology protection, the division of lawyers’ fees, and qualifications for an attesting expert or expert witness.ï¿½ The Administration has also introduced a comprehensive bill which includes some fairly significant tort reform measures, such as capping noneconomic damages and wrongful death at $500,000 and permanently removing the escalator, structured settlements, itemization of the award and mandating the use of a neutral expert.ï¿½ We expect more bills to be introduced including one to make the necessary technical corrections to HB 2 of the Special Session.

For more information, please contact Heather Barthel.

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BILLS INTRODUCED

Budget - Capital

Budget - Operating

General Health Care

Health Care Facilities

Health Care Practitioners

Long Term Care/Nursing Homes

Medicaid

Miscellaneous

Public Health

Taxes/Tax Policy

Tort Reform

BILLS INTRODUCED

Budget - Capital

HB0155ï¿½ Creation of a State Debt - Baltimore County - Northwest Hospital Center

The bill authorizes $800,000 in state bonds to support the renovations and capital equipping of the intensive care unit, located at Northwest Hospital Center’s Baltimore County campus.

Effective Date:ï¿½ June 1, 2005

For more information, please contact:ï¿½ Jim Kaufman

[ Go to Bills Introduced]

Budget - Capital

HB0155ï¿½ Creation of a State Debt - Baltimore County - Northwest Hospital Center

The bill authorizes $800,000 in state bonds to support the renovations and capital equipping of the intensive care unit, located at Northwest Hospital Center’s Baltimore County campus.

Effective Date:ï¿½ June 1, 2005

For more information, please contact:ï¿½ Jim Kaufman

HB0201ï¿½ Creation of a State Debt - Mercy Medical Center

The bill authorizes $800,000 in state bonds for the renovation and modernization of the inpatient beds located at Mercy Medical Center’s Baltimore City campus.

Effective Date:ï¿½ June 1, 2005

For more information, please contact:ï¿½ Jim Kaufman

[ Go to Bills Introduced]

Budget - Operating

HB0148ï¿½ Budget Reconciliation Act of 2005

House Bill 148, the Budget Reconciliation and Financing Act, amends the allowance for the Sellinger Aid program for Independent Higher Education institutions.ï¿½ The funding under HB 148 is $10 million less than included in the FY 2006 budget allowance.

The bill also includes language eliminating the Senior Prescription Drug Program effective January 1, 2006, and transferring the subsidy paid by CareFirst BlueCross and BlueShield of Maryland to the Maryland Pharmacy Assistance Program.ï¿½ For CY 2006, the subsidy shall equal $11.7 million and beginning in CY 2007 and each year thereafter total $23.0 million.

In addition, the bill amends the Public Health Grant paid to each Johns Hopkins and University of Maryland to $1.2 million for FY 2006 only.Effective Date:ï¿½ June 1, 2005

For more information, please contact:ï¿½ Bret Schreiber

SB0127ï¿½ Budget Reconciliation Act of 2005

Senate Bill 127, the Budget Reconciliation and Financing Act, amends the allowance for the Sellinger Aid program for Independent Higher Education institutions.ï¿½ The funding under SB 127 is $10 million less than included in the FY 2006 budget allowance.

ï¿½

In addition, the bill amends the Public Health Grant paid to each Johns Hopkins and University of Maryland to $1.2 million for FY 2006 only.

Effective Date:

For more information, please contact:ï¿½ Bret Schreiber

General Health Care

HB0014ï¿½ Department of Health and Mental Hygiene - Prenatal Dietary Supplement Distribution Program

To reduce the number of cases of neural tube and other birth defects in the State of Maryland, HB 14 requires DHMH to establish a program for distribution of: 1- prenatal multivitamins and mineral dietary supplements with the recommended levels of Folic Acid to women of childbearing age (women ages 15 to 45 who qualify for WIC); and 2- counseling and written information regarding the proper use of the supplements.ï¿½ HB 14 also provides for the program to be funded by the state budget, the federal Women, Infants and Children (WIC) food program as well as other lawful sources.

Effective Date:ï¿½ October 1, 2005

For more information, please contact:ï¿½ John Safapour

[ Go to Bills Introduced]

General Health Care

HB0014ï¿½ Department of Health and Mental Hygiene - Prenatal Dietary Supplement Distribution Program

Effective Date:ï¿½ October 1, 2005

For more information, please contact:ï¿½ John Safapour

Health Care Facilities

HB0199ï¿½ Hospital Infections Disclosure Act

The bill requires the Maryland Health Care Commission (MHCC) to collect data on hospital-acquired infection rates from hospitals.ï¿½ MHCC will be required to adopt regulations that:

1) establish the time, format and process of submission;

2) identify the types of hospital-acquired infections on which hospitals must collect and report data; and

3) establish procedures for ensuring complete confidentiality of patients, employees and licensed health professionals in the reports submitted.

Reports are to be made available to the public by September 1, 2006.ï¿½ In addition, MHCC will be required to publish an annual report, beginning December 1, 2006, summarizing the hospital-acquired infection data submitted at hospitals.ï¿½ The report must include: 1) a comparison of risk-adjusted hospital-acquired infection rates for each hospital in the state, and

2) a discussion of findings and trends, including comparisons to prior years.

Hospitals that do not comply with the data collection and/or reporting requirements may be subject to delicensure or a fine of up to $1,000 per day per violation.

Effective Date:ï¿½ July 1, 2005

For more information, please contact:ï¿½ Sheila Higdon

HB0254ï¿½ Department of Human Resources - Disclosure of Information - Hospitals and Birthing Centers

records and reports concerning child abuse or neglect for the purpose of making discharge decisions for that child.

Effective Date:ï¿½ July 1, 2005

For more information, please contact:ï¿½ John Safapour

[ Go to Bills Introduced]

SB0220ï¿½ Department of Human Resources - Disclosure of Information - Hospitals and Birthing Centers

When the medical or human resources personnel of a hospital or birthing center have reasonable and articulable concerns about the safety of a child after discharge, SB220 and HB 254 authorize the disclosure of records and reports concerning child abuse or neglect for the purpose of making discharge decisions

for that child.Effective Date:ï¿½ July 1, 2005

For more information, please contact:ï¿½ John Safapour

SB0250ï¿½ Public Health - Medical Laboratories - Inspection, Information Sharing, and Whistleblower Protection

SB 210 amends current statute regarding the inspection of medical laboratories, providing that DHMH inspections will be unannounced. The bill also authorizes lab employees to disclose information to the Secretary of Health that the employee believes evidences:

1) abuse of authority, gross mismanagement or gross waste of money;

2) substantial and specific danger to public health and safety; and

3) violations of the standards and requirements for medical laboratories in the state.

In addition, provisions of the bill protect employees from being subject to adverse employment action as a result of disclosure of information and/or for agreeing to cooperate with an investigation of a medical lab.ï¿½ It authorizes such employees to take civil action against the medical lab if adverse employment action is taken against an employee who discloses the above-referenced information.ï¿½

The bill also requires the Secretary of Health to develop and disseminate a document that informs medical lab employees on the manner in which to report instances of noncompliance or violation.ï¿½ The document shall include the name and contact information of the State agency, the types of reportable offenses, a description of the rights and protections to which they are entitled, and a toll-free reporting number.ï¿½ Medical labs will be required to post the document in a conspicuous place.ï¿½

The Secretary will be required to provide notice to any organization that has oversight authority over medical laboratories in the state of a discovery or report of noncompliance or other violation.ï¿½ A standard format and method of transmission of this information will be developed by the Secretary.

The bill also stipulates that the Secretary may impose a fine of up to $2000 on a person who notifies a medical laboratory of the time or date on which an unannounced inspection is scheduled to be conducted.

Effective Date:ï¿½ July 1, 2005

For more information, please contact:ï¿½ Sheila Higdon

Health Care Practitioners

HB0233ï¿½ Public Health - Legibility of Prescriptions Workgroup - Reports

The bill extends the time for the workgroup to complete its work on the study of prescription legibility and requires that an interim report be submitted February 1, 2005.ï¿½ A final report will be due by August 15, 2005.Effective Date:ï¿½ October 1, 2005

For more information, please contact:ï¿½ Sheila Higdon

Long Term Care/Nursing Homes

HB0177ï¿½ Health Care Facilities - Oversight Committee on Quality of Care in Nursing Homes - Additional Duties and Sunset Extension

The bill alters the duties of the Oversight Committee on Quality of Care in Nursing Homes by adding a duty to consider the quality of care of mentally ill patients in nursing homes.ï¿½ It also extends the termination date of the Oversight Committee to December 31, 2006.

Effective Date:ï¿½ October 1, 2005

For more information, please contact:ï¿½ Sheila Higdon

HB0222ï¿½ Assisted Living Programs - Criteria for Requiring Manager Training

The bill amends current law regarding training requirements for managers of assisted living programs, requiring that managers of facilities with 5 or more beds complete the training that is now required of managers of facilities with 17 or more beds.

Effective Date:ï¿½ October 1, 2005

For more information, please contact:ï¿½ Sheila Higdon

[ Go to Bills Introduced]

Medicaid

HB0229ï¿½ Senior Citizen Prescription Medicine Releif Act of 2005

The bill requires any pharmacy that participates in the Medicaid Program to charge a Medicare beneficiary the same price and dispensing fee as offered under the Medicaid program.ï¿½ In addition, the bill states that DHMH shall transmit the program reimbursement rate to the pharmacy, but may not apply any program drug utilization review process for this program.ï¿½ The bill sunsets on September 30, 2008, with no further action by the General Assembly.

Effective Date:ï¿½ October 1, 2005

For more information, please contact:ï¿½ Jim Kaufman

HB0231Prescription Drugs - Canadian Mail Order Plan

The bill requires DHMH to seek a waiver before November 1, 2005 from the Food and Drug Administration that would allow the State to operate a Canadian drug importation program.ï¿½ In addition, the Department would seek approval from the Centers for Medicare and Medicaid Services to allow state funds used to operate the Canadian drug importation program to qualify for federal matching funds.ï¿½ If the waiver request is denied, the bill requires DHMH to file a lawsuit against the FDA.

Effective Date:ï¿½ July 1, 2005

For more information, please contact:ï¿½ Jim Kaufman

Miscellaneous

HB0176 Prescription Drugs - Senior Citizens - Purchasing Outside the State

The bill requires the Department of Health & Mental Hygiene to evaluate a process for assisting senior citizens in purchasing reduced-cost prescription drugs from sources outside the State if the process is feasible, cost effective, and consistent with federal law and regulation.ï¿½ A report on the findings is due to

the Governor and General Assembly by October 1, 2006.

Effective Date:ï¿½ June 1, 2005

For more information, please contact:ï¿½ Sheila Higdon

[ Go to Bills Introduced]

Public Health

SB0129ï¿½ Energy Assistance Program Act

The bill renames the Energy Assistance and Information Program Act to the Energy Assistance Program Act.ï¿½ The bill redefines “Energy Emergency” to include a lack of fuel or the imminent discontinuation of services.ï¿½ It also changes the office within the Department of Human Resources that administers the program to the Office of Home Energy Programs in the Community Services Administration and creates the Office of Home Energy.ï¿½ The bill amends who is eligible to only low income households, the bill deletes “the near poor, the elderly and those on fixed incomes.”ï¿½ The bill eliminates the cap of $250 per year to any qualifying household.

Effective Date:ï¿½ October 1, 2005

For more information, please contact:ï¿½ Heather Barthel

SB0143ï¿½ Courts – Certificate of Merit – Employer of Licensed Professional

This bill amends ï¿½3-2C of the Courts and Judicial Proceedings Article - Malpractice Claims Against Licensed Professionals.ï¿½ It adds to the definition of a "Claim" that it is not only an action filed against the licensed professional but also if it is filed against the employer of a licensed professional.

Effective Date:ï¿½ October 1, 2005

For more information, please contact:ï¿½ Heather Barthel

[ Go to Bills Introduced]

STAFF CONTACT INFORMATION
Please contact Government Relations if you have concerns or would like additional information. Your input assists us greatly in evaluating and formulating the position of Johns Hopkins on all legislation.

Legislative Session Office
47 State Circle, Suite 203
Annapolis, MD 21401
410-269-0057
fax 410-269-1574

Heather Barthelï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ [email protected]

Mickey Geislerï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ [email protected]

Matt Greenwoodï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ [email protected]

Sheila Higdonï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ [email protected]

John Safapourï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ [email protected]
Bret Schreiberï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ [email protected]

Cathy Ximenezï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ï¿½ [email protected]

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ACRONYMS

Legislative Hotline is a service of Johns Hopkins Government Affairs.

ï¿½ 2005 The Johns Hopkins Institutions. Baltimore, Maryland.
Office of Government, Community and Public Affairs.