We are working with the Administration and members of the Senate toward securing the necessary votes for passage of the amended Maryland False Claims Act through the Senate. We expect the bill to come to the Senate floor within a few days, and then cross over to the House shortly thereafter should it pass 3rd reading in the Senate. As we have in the Senate, we will work with members of the House to keep the current amendments and adopt the Senate version of the bill.


Senate Budget & Taxation Committee Decisions

On Friday, March 19, the Senate Budget & Taxation Committee adopted the amended budget bill and the amended Budget Reconciliation and Financing Act (BRFA). Some Committee actions of particular interest to Johns Hopkins are:

� Recommendation to cut the Governor�s proposed $12.4 million allowance for stem cell research to $6.2 million.
� Addition of committee narrative directing the Department of Health and Mental Hygiene to submit a report reconciling the hospital assessment revenue assumed in the fiscal 2009 budget to actual savings in uncompensated care for that same period.
� Recommendation to increase FY 2011 Sellinger funding from the Governor�s appropriation ($30 million) up to our current FY 2010 level ($38.4 million). They also made out-year adjustments by level funding the program for FY 2012, and gradually increasing the appropriation until FY 2017. In that year the Sellinger Formula would reach the multiplier of 12%, not the full 15.5%, and would stay at that multiplier.
� Rejection of the staff recommendation to reduce the MCO statewide bonus funding by $2.5 million.

Additionally the Committee:

� Adopted language to reduce the number of state employees by 500, and provide general fund budget flexibility allowing the Governor to induce individuals to leave their positions through a �buy out� program.
� Rejected a $60 million cut to K-12 education, but adopted a recommendation to impose a 1% cap on inflation for the Thornton education formula beginning in FY 2011 and extending through FY 2015.
� Eliminated a $20 million cut to the Baltimore City Highway User Fund.
� Adopted language that emphasizes the need to resolve issues that are significantly impacting the state�s general fund, including state retiree pensions and health care.
As a result of the Committee decisions, the projected fund balance for FY 2011 would be approximately $112 million, potentially reducing the gap in the structural deficit by about $300 million in FY 2012 and $1 billion in FY 2015.

These bills will now go to the floor of the Senate for consideration by the full body. The House will begin their budget deliberations next week. Whatever differences exist between the two chambers� bills will be reconciled by a conference committee to be named later.


Cigarette Restitution Fund (CRF) Legislation

Legislation introduced by Delegate Sandy Rosenberg on CRF was heard by the House Health & Government Operations and Appropriations Committees last week. Introduced primarily at the request of those interested in the Tobacco Cessation component of CRF (because of drastic cuts to that program over the years), the bill also included provisions regarding cancer research that would increase those funding levels over those proposed by the Governor in FY 2013. Johns Hopkins and the University of Maryland testified in support of that provision.

At the conclusion of the hearing, Chairman Hammen recognized that the CRF program has been successful, but expressed his belief that it is time to reassess the entire program and the funding stream. Hammen made it clear that he believes some components of the existing program have been more successful than others, and he is not suggesting it be abolished in its entirety. Rather he intends to convene a group of legislators, including members of his Committee and the House Appropriations Committee, to the study this over the interim and come back next year with a plan. He has asked Johns Hopkins to work with him on this issue.


Johns Hopkins Medicine Capital Request

On Tuesday, March 16, Dr. Bill Baumgartner represented Johns Hopkins Medicine at the Senate Budget and Taxation Committee�s hearing on the FY 2011 capital request. The budget analyst recommended approval of the Governor�s proposed $7.5 million allowance � $5 million for the Pediatric Trauma Center, and $2.5 million for the Cardiovascular and Critical Care Tower. The Senate will make capital budget decisions next week.

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BILLS INTRODUCED

Health Insurance/Health Care Access

SB1125 Maryland Health Insurance Plan - Administration of National High Risk Pool Program

SB 1125, an emergency bill introduced on March 19, authorizes the Board of Directors of the Maryland Health Insurance Plan (the Plan) to elect to administer a national temporary high risk pool program for the state. The bill permits the Board to establish a separate benefit package delivery system and premium rate for individuals enrolled in the national high risk pool programs consistent with the benefit package and premium rates established under federal law for this program. The bill also permits the Plan to enter into any necessary agreements in order to administer the national high risk pool program, and permits the Board of the Plan to limit enrollment in the temporary high risk pool program based on the amount of federal funding available for this purpose.

Further, the bill stipulates that the state must meet any maintenance of effort requirement established by federal law in connection with a temporary high risk pool program administered by the Plan; and, to that end, requires the Health Services Cost Review Commission (HSCRC) to take such obligation into account in making its annual assessment. The bill requires the Plan to monitor federal and state legislation relating to the national high risk pool program and requires the Plan to notify the Department of Legislative services within 10 days of enactment of legislation that ends the national high risk pool program for the state.

Effective Date: Emergency Measure (Effective upon enactment)
For more information, please contact: Sheila Higdon


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