FY 2010-11 COMMUNITY HEALTH BUDGET S.B. 1152 (H-1): CONCURRENCE SUMMARY


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House Changes to Senate-Passed:
1. Civil Service Wage Increase. The House rejected the Senate's assumption that the civil service wage increase would be rejected ($5.8 million GF/GP)	5,840,300
2. Healthy Michigan Fund. The House rejected the Senate's reduction ($5.0 million GF/GP)	5,005,500
3. Community Mental Health (CMH) non-Medicaid Funding. The House rejected the Senate's 20% reduction, instead concurring with the Governor's much smaller administrative reduction ($53.7 million GF/GP)	53,695,700
4. Local Public Health. The House rejected the Senate's reduction in funding ($1.0 million GF/GP).	1,000,000
5. Drug Manufacturer Immunity. The House concurred with the Governor's assumption of savings from repeal of drug manufacturer immunity. The Senate had rejected those savings ($338,100 GF/GP reduction).	(1,273,200)
6. Physician Rate Reduction. The House rejected the Senate's 4.0% reduction in certain Medicaid physician payment rates ($3.4 million GF/GP).	12,651,200
7. Other Senate Assumed Savings. The House rejected the Senate's assumed savings from more nursing home transitions, elimination of the Transitional Medical Assistance Plus program, cuts to laboratory and epidemiology services, and cuts to aging programs ($10.5 million GF/GP).	17,699,300
8. Children's Special Health Care Services (CSHCS). The House rejected the Governor's and Senate's cuts to genetic counseling and human growth hormone coverage in the CSHCS program. The House also restored FY 2009-10 cuts to incontinent supplies and non-emergency transportation in the program ($4.3 million GF/GP).	4,328,200
9. Substance Abuse Services. The House restored the Governor's and Senate's cuts to substance abuse funding and funded a methadone/buprenorphine clinic ($4.2 million GF/GP).	4,179,200
10. Elimination of Optional Eligibility Groups. The House rejected the Senate's elimination of Medicaid coverage for Group 2 caretaker relatives and Group 219 and 20 year olds ($9.8 million GF/GP).	32,383,200
11. Disproportionate Share Hospital (DSH) Pools. The House restored the so-called "second DSH pool" at a value of $5 million, below the Senate's restoration of $10 million ($1.7 million GF/GP reduction).	(5,000,000)
Total Changes	$146,562,400
FY 2010-11 House-Passed Gross Appropriation	$13,712,528,800

FY 2010-11 COMMUNITY HEALTH BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2010-11 Senate-Passed:

1. CMH non-Medicaid Funding Formula. In conjunction with the rejection of the Senate's 20% cut in CMH non-Medicaid funding, the House also stripped language that would direct that the FY 2009-10 funding formula be continued in FY 2010-11. Instead the House included language directing that the Department consider the formula and other factors in making allocations. (Sec. 462)

2. Mental Health Services for Jail Inmates. The House included new language allowing funding to be used to support CMH jail mental health services. (Sec. 492)

3. Medical Marihuana Outsourcing. The House did not include Senate language requiring the Department to bid out administration of the Medical Marihuana Program. (Sec. 727)

4. CSHCS Eligibility. The House included new language directing that families applying for CSHCS complete a Healthy Kids application if it appears the enrollee would likely be eligible for Medicaid or MIChild. (Sec. 1205)

5. Presumed MIChild Eligibility. The House included language directing that the Department automatically enroll a child in MIChild if the child is eligible, based on income, for free school breakfast, lunch, or milk. (Sec. 1678)

6. Increase in Medicaid Outpatient Hospital Rates. The House included language directing that Medicaid outpatient payment rates for small rural hospitals be increased to reflect the cost of providing such services. (Sec. 1842)

7. Wellness Therapies. The House included language directing the Department to explore Medicaid coverage for wellness therapies that could reduce costs for physical therapy services. (Sec. 1843)

8. Long-term Care Managed Care Pilots. The House included language directing the Department to institute two long-term care managed care pilot projects. (Sec. 1845).

Date Completed: 05/28/10 Fiscal Analysts: Steve Angelotti and David Fosdick Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hidch_cc.doc