On March 5, President Daniels testified before Senate and House panels in support of legislation to create the Maryland E-Nnovation Initiative and RISE Zones. SB 601 would create the Maryland E-Nnovation Initiative, which would provide up to $50 million in state funds to support endowed research at Maryland's public and private research universities. To qualify, a university would have to secure matching funds from a private donor and an endowed researcher would have to hold a joint or secondary appointment with another in-state research university or federal lab. SB 600 would create RISE Zones, which are designed to leverage the assets of Maryland's anchor institutions to promote community and economic development. Both initiatives have the strong support of the legislative leadership. President Daniels testified on a panel that included USM Chancellor Brit Kirwan, UMCP President Wallace Loh, UMB President Jay Perman, and Morgan State University President David Wilson.


Senate Budget Actions

On March 6, the Board of Revenue Estimates released new revenue estimates for the state. Total state revenue estimates were reduced by $253 million ($132 million in FY 2014 and $121 million in FY 2015). These reductions are largely attributed to declining personal income and sales tax revenues. The Senate Budget & Taxation Committee announced their budget decisions this week, adjusting their decisions for the reduced revenues.


Education

Although the Committee voted to restore $3.2 million to ongoing Sellinger program funding, FY 2015 state support for the University System of Maryland and Morgan State University was reduced by $10 million and $1 million respectively. According to the statutory formula, this reduces Sellinger funding by $678k, for an overall appropriation of $44.2 million in Sellinger funds in FY 2015.


Health

Managed Care Organization rates were reduced by 1% for the period of January 1, 2015 through June 30, 2015. This reduction is in addition to the 1% reduction included in the Governor's budget for July through December of 2014. The Committee’s actions reduce MCO rates by $20.2 million, combined with the Governor's cut for a total of $40.4 million.

The Committee also approved a 0.5% reduction in the Maryland Health Insurance Plan hospital assessment. Rather than approving the Administration's plan to use the funding from the MHIP assessment to support a new Community Partnership Program the committee instead directed that the $30 million generated from the assessment reduction be used to support hospital rates in a manner that helps hospitals meet the goals of the new Medicare waiver.

The Committee adopted an amendment stating that beginning in FY 2016, the Medicaid deficit assessment shall be reduced by the amount of hospital savings that accrue to the Medicaid program as a result of implementation of the new waiver. The savings shall be calculated by the HSCRC, using a methodology developed by Department of Health and Mental Hygiene, Department of Budget and Management, and the Maryland Hospital Association.

The Committee largely addressed the revenue reductions by changing the formula for the state's supplemental contribution to the employee pension system. The supplemental pension payments are reduced by $100 million in each year for FY 2014 and 2015.

These decisions represent the first stage of budget deliberations. The full Senate will debate this budget proposal the week of March 10, with the House of Delegates beginning their budget deliberations the week of March 17.


Medical Liability

On March 5, the House Judiciary Committee held hearings on medical liability bills. Lauree Barreca, Senior Counsel, Claims and Litigation, Johns Hopkins Health System testified on two bills, highlighting potential impact to health care delivery. HB 635 would make a genuine apology by a health provider inadmissible as evidence of an admission of liability or an admission against interest in a medical liability case. Allowing doctors to apologize without fear of adverse legal implications is another positive step in the direction of decreasing health care costs and improving the quality of health care delivery in Maryland. Johns Hopkins State Affairs joined a coalition of hospitals and health care providers supporting this legislation, which is opposed by Maryland's trial lawyers. HB 1009 would triple the state’s cap ($740k to $2.2 million) on non-economic damages in medical liability cases, at a time when health care providers are facing unprecedented and unsustainable jury verdicts relating to birth injuries.

Johns Hopkins State Affairs joined a coalition of hospitals, health care providers, and insurance companies in strong opposition to the bill.


Extreme Strength Alcohol Ban

On March 6, the House of Delegates passed HB 359 to ban the retail sale of alcohol 190 proof and above in Maryland. The bill is similar to a measure already passed by the Maryland Senate, but includes additional language to exempt purchase for certain permitted categorical uses such as medicinal, industrial, etc. The two chambers will now attempt to reach a compromise position.

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BILLS INTRODUCED

Behavioral Health

HB871 Health - Compensation for Mental Health Services Providers - Workgroup

Requiring the Health and Government Operations Committee to convene a workgroup to study the manner in which mental health services providers are compensated for specified services; requiring the workgroup to make specified recommendations; and requiring the workgroup to report its findings and recommendations on or before October 1, 2015.

Hearing Date: Tue 3/4 1:00 PM

Effective Date: October 1, 2014
For more information, please contact: Nicole McCann

HB1434 Community Services - Provider Reimbursement

Repealing the Community Services Reimbursement Rate Commission; requiring the Department of Health and Mental Hygiene to establish and hire an independent contractor to verify a specified cost structure related to inflationary cost adjustments for community services providers; requiring the Department to conduct a specified study and assess specified cost structures in a specified manner; requiring a specified independent contractor to collect and analyze specified data and conduct a specified assessment; etc.

Hearing Date: Tue 3/11 1:00 PM

Effective Date: June 1, 2014
For more information, please contact: Nicole McCann

HB1489 Department of Health and Mental Hygiene - Mental Health Facilities - Accreditation

Repealing a requirement that the Secretary of Health and Mental Hygiene consider accreditation of specified mental health facilities by specified accrediting organizations; and authorizing the Secretary to consider accreditation of specified mental health facilities by an accrediting organization approved by the Department of Health and Mental Hygiene.

Hearing Date: Tue 3/18 1:00 PM

Effective Date: October 1, 2014
For more information, please contact: Nicole McCann

HB1509 Maryland Health Benefit Exchange - State Reinsurance Program and Health Insurance Subsidy Program

Substituting the Health Insurance Subsidy Program for the State Reinsurance Program in specified provisions of law relating to funding of the State Reinsurance Program; authorizing the Maryland Health Benefit Exchange, with the approval of the Maryland Insurance Commissioner, to establish the Health Insurance Subsidy Program to take effect on or after January 1, 2015; etc.

Hearing Date: Fri 3/14 12:30 PM

Effective Date: July 1, 2014
For more information, please contact: Nicole McCann

HB1510 Behavioral Health Administration - Establishment and Duties

Merging the Alcohol and Drug Abuse Administration and the Mental Hygiene Administration in the Department of Health and Mental Hygiene to establish the Behavioral Health Administration in the Department; establishing the qualifications, responsibilities, powers, and duties of the Director of the Behavioral Health Administration; requiring substance use disorder programs and mental health programs to be licensed by the Secretary of Health and Mental Hygiene, with specified exceptions; etc.

Hearing Date: Fri 3/14 12:30 PM

Effective Date: July 1, 2014
For more information, please contact: Nicole McCann

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Health Care Occupations

HB1211 State Board of Nursing - Midwives - Licensing and Regulation

Establishing a licensing and regulation scheme for the practice of traditional midwifery under the State Board of Nursing; requiring licensed midwives to obtain specified documents, make specified assurances, inform mothers of specified options, and refer, transfer, and transport clients to health care facilities and health care practitioners under specified circumstances; establishing the Midwifery Advisory Committee; etc.

Hearing Date: Tue 3/11 1:00 PM

Effective Date: October 1, 2014
For more information, please contact: Nicole McCann

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Health Insurance/Health Care Access

HB1229 Maryland Health Benefit Exchange - Repeal - Transfer of Enrollees to Federal Health Insurance Marketplace

Repealing the Maryland Health Benefit Exchange; repealing the purpose, powers, duties, Board of Trustees, Executive Director and staff, functions and operations, funding, and administration of the Maryland Health Benefit Exchange; repealing the Maryland Health Benefit Exchange Fund; repealing the Individual Exchange; repealing the SHOP Exchange; repealing the requirement that a portion of a specified tax be distributed to the Maryland Health Benefit Exchange Fund for a specified purpose; etc.

Hearing Date: Fri 3/7 12:30 PM

Effective Date: Upon Enactment
For more information, please contact: Nicole McCann

HB1268 Maryland Health Benefit Exchange - Criminal History Records Checks

Requiring the Maryland Health Benefit Exchange to request from the Criminal Justice Information System Central Repository a State and national criminal history records checks for specified individuals; requiring the Exchange to submit fingerprints and specified fees to apply for a specified criminal history records check; etc.

Hearing Date: Thu 3/6 1:00 PM

Effective Date: October 1, 2014
For more information, please contact: Nicole McCann

HB1336 Maryland Health Benefit Exchange - Enrollment of Individuals - Information

Requiring the Maryland Health Benefit Exchange to ask specified individuals for specified information when facilitating enrollment of the individuals in specified health insurance plans and specified health insurance programs; etc.

Hearing Date: Thu 3/6 1:00 PM

Effective Date: Upon Enactment
For more information, please contact: Nicole McCann

HB1509 Maryland Health Benefit Exchange - State Reinsurance Program and Health Insurance Subsidy Program

Substituting the Health Insurance Subsidy Program for the State Reinsurance Program in specified provisions of law relating to funding of the State Reinsurance Program; authorizing the Maryland Health Benefit Exchange, with the approval of the Maryland Insurance Commissioner, to establish the Health Insurance Subsidy Program to take effect on or after January 1, 2015; etc.

Hearing Date: Fri 3/14 12:30 PM

Effective Date: July 1, 2014
For more information, please contact: Nicole McCann

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Health Reform

HB1361 Joint Committee to Review the Maryland Health Benefit Exchange and Audit by the Office of Legislative Audits

Establishing the Joint Committee to Review the Maryland Health Benefit Exchange; requiring the Committee to investigate and review specified matters; authorizing the Committee to issue subpoenas, compel the attendance of witnesses and the production of documents, administer oaths, and cause the deposition of specified witnesses; requiring the Office of Legislative Audits to conduct a performance audit of the Exchange; etc.

Hearing Date: Fri 3/7 12:30 PM

Effective Date: Upon Enactment
For more information, please contact: Nicole McCann

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Health, General/Public/Environmental

HB1235 Community Integrated Medical Home Program

Establishing the Community Integrated Medical Home Program; establishing the mission of the Community Integrated Medical Home Program; requiring the Community Integrated Medical Home Program to take specified actions to carry out its mission; requiring the Community Integrated Medical Home Program to be administered jointly by the Maryland Health Care Commission and the Department of Health and Mental Hygiene; etc.

Hearing Date: Thu 3/6 1:00 PM

Effective Date: July 1, 2014
For more information, please contact: Nicole McCann

HB1404 Health Care Disparities, Cultural and Linguistic Competency, and Health Literacy - Continuing Education

Requiring specified applicants and health care professionals to provide to specified boards evidence of completion of continuing education requirements; requiring the boards, in consultation with the Department of Health and Mental Hygiene, to adopt specified regulations; stating the intent of the General Assembly that the regulations require 5% to 10% of the total required continuing education credits be in the areas of health care disparities, cultural and linguistic competency, and health literacy; etc.

Hearing Date:

Effective Date: October 1, 2014
For more information, please contact: Nicole McCann

SB891 Maryland Health Care Commission - Authority of Acute Care Hospitals to Provide Cardiac Surgery Services - Voluntary Relinquishment - Regulations

This legislation amends existing law by requiring an acute general hospital, as a condition of a certificate of conformance or a certificate of ongoing performance to provide cardiac surgery, to agree to voluntary relinquishment of such services if the hospital fails to meet the applicable standards set by the Maryland Health Care Commission. This requirement exists in current statute for hospitals performing emergency or elective PCI.

Hearing Date: Thu 3/13 1:00 PM

Effective Date: June 1, 2014
For more information, please contact: Sheila Higdon

SB934/HB1447 State Aid Reporting Requirement - Nonprofit Entities - Minority Business Participation

This bill requires nonprofits that receive $750,000 or more in state capital or operating support to submit a report to the Governor’s Office on Minority Affairs on the use of those state funds as they relate to minority business enterprise. Similar legislation passed in 2010 that requires hospitals and institutions of higher education to report on their use of state capital support of $500,000 or more.

Hearing Date: Wed 3/12 1:00 PM

Effective Date: June 1, 2014
For more information, please contact: Sheila Higdon

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Medicaid

HB1497 Maryland Medical Assistance Program - Services for Children With Prader-Willi Syndrome

Requiring the Department of Health and Mental Hygiene to apply to the Centers for Medicare and Medicaid Services for a home- and community-based services waiver in order to receive federal matching funds for specified services to specified children with Prader-Willi syndrome.

Hearing Date: Tue 3/18 1:00 PM

Effective Date: July 1, 2014
For more information, please contact: Nicole McCann

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