Kaiser Daily Health Policy Report Highlights Coverage of State Public Health Ins

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Kaiser Daily Health Policy Report Highlights Coverage of State Public Health Ins

The following summarizes news coverage of developments related to public health insurance programs in Minnesota, New Hampshire, Oklahoma, Tennessee and Texas.

Minnesota: In talks Wednesday with Gov. Tim Pawlenty (R) and House Speaker Steve Sviggum (R), Senate Health and Human Service Budget Division Chair Linda Berglin (D) presented a Senate plan that would reduce state spending on the state's General Assistance Medical Care program by moving most of its beneficiaries into MinnesotaCare, the Minneapolis Star Tribune reports. Under the plan, GAMC would be an "entrance point" insurance program for unemployed adults without children, who would move on to MinnesotaCare once they become employed. The plan was presented as an alternative to a proposal supported by Pawlenty and the House that would remove an estimated 47,000 childless adults from MinnesotaCare and use some MinnesotaCare funding for GAMC. Currently, GAMC is funded by the state general fund, while MinnesotaCare is financially supported by a fee paid by health care providers (Hopfensperger/Lopez, Minneapolis Star Tribune, 5/26).
New Hampshire: The state Senate on Thursday voted 16-8 in favor of a bill (HB 691) that would expand the time period during which seniors would be unable to transfer assets and still qualify for Medicaid, the Nashua Telegraph reports. The bill, which was already approved in the House, would expand the restriction from three years to five. A separate provision of the bill would expand the period when a family could be forced to reimburse Medicaid for a transfer of property or wealth, up to the date the senior is admitted to a nursing home. No Senate Democrats voted in favor of the bill, and most House Democrats also opposed it. Pamela Walsh, communications director for Gov. John Lynch (R), said the governor has not yet decided whether to sign the bill because he has "concerns" about its effect on low-income residents (Landrigan, Nashua Telegraph, 5/27).
Oklahoma: House Speaker Todd Hiett (R) on Wednesday proposed a bill (HB 1088) that would use $63 million in revenue from a state production tax to increase Medicaid funding for hospitals, the Oklahoman reports. The production tax, which is paid on oil and natural gas produced in Oklahoma, is expected to raise about $100 million in the fiscal year beginning July 1. The $63 million taken from the production tax revenue under Hiett's bill would be matched with $126 million in federal funding. In addition to the funding proposal, Hiett's bill includes a provision that would form a commission to recommend reforms for the state's Medicaid program. It also calls for the Oklahoma Heath Care Authority, which runs the Medicaid program, to find $100 million in savings. The last day of the legislative session was Friday (McNutt, Oklahoman, 5/26).
Tennessee: The 6th Circuit Court of Appeals on Thursday ruled that Tennessee's procedure to end coverage for up to 323,000 TennCare beneficiaries protects their due-process rights, the Tennessean reports. The ruling overturns a decision by U.S. District Judge William Haynes. Gov. Phil Bredesen (D), speaking to the state House Democratic Caucus, said, "The court ruled very strongly and positively in favor of the state." Bredesen's "main reason" for appearing before the caucus was to voice opposition to an amendment that could "set back" his TennCare plan, the Tennessean reports (Cass, Tennessean, 5/28). The amendment, sponsored by state Sens. Jim Bryson (R) and Diane Black (R), would move $100 million from a "safety net" for beneficiaries who will lose their coverage, instead funding continued TennCare coverage for 67,000 beneficiaries who are otherwise "uninsurable" (Gouras, AP/Knoxville News-Sentinel, 5/27).
Texas: The state Senate on Thursday approved a bill that would require health care providers in eight urban counties to save $109 million on care for Medicaid beneficiaries over the next two years, the Fort Worth Star-Telegram reports. The savings would be achieved by expanding some sort of managed care program to the state's sickest beneficiaries. Public meetings would be held to get feedback on how managed care should be delivered. State health department officials then would choose whichever plan they believe is more effective. Options include using StarPlus, the HMO-supported plan, or "an almost identical plan" known as the integrated-care model, which is backed by public hospitals. If savings targets are not reached, the state would reduce payments to health care providers or HMOs running the program. Gov. Rick Perry (R) is expected to sign the bill. The legislation must be approved by the federal government (Mitchell, Fort Worth Star-Telegram, 5/31).

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