HOUSE BILL No. 5877

 

 

EXECUTIVE BUDGET BILL

 

February 23, 2010, Introduced by Rep. McDowell and referred to the Committee on Appropriations.

 

     A bill to make appropriations for the department of community

 

health and certain state purposes related to mental health, public

 

health, and medical services for the fiscal year ending September

 

30, 2011; to provide for the expenditure of those appropriations;

 

to create funds; to require and provide for reports; to prescribe

 

the powers and duties of certain local and state agencies and

 

departments; and to provide for disposition of fees and other

 

income received by the various state agencies.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

PART 1

 

LINE-ITEM APPROPRIATIONS

 

     Sec. 101. Subject to the conditions set forth in this bill,

 

the amounts listed in this part are appropriated for the department

 


of community health for the fiscal year ending September 30, 2011,

 

from the funds indicated in this part. The following is a summary

 

of the appropriations in this part:

 

DEPARTMENT OF COMMUNITY HEALTH

 

APPROPRIATION SUMMARY

 

   Full-time equated unclassified positions.......... 6.0

 

   Full-time equated classified positions........ 4,356.8

 

   Average population.............................. 893.0

 

GROSS APPROPRIATION.................................... $ 14,396,931,000

 

   Interdepartmental grant revenues:

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................        54,224,300

 

ADJUSTED GROSS APPROPRIATION........................... $ 14,342,706,700

 

   Federal revenues:

 

Total other federal revenues...........................     8,982,050,000

 

Federal FMAP stimulus revenues (ARRA)..................       851,400,600

 

   Special revenue funds:

 

Total local revenues...................................       232,374,700

 

Total private revenues.................................        80,272,500

 

Merit award trust fund.................................       149,220,500

 

Total other state restricted revenues..................     2,030,926,600

 

State general fund/general purpose..................... $  2,016,461,800

 

   Sec. 102. DEPARTMENTWIDE ADMINISTRATION

 

   Full-time equated unclassified positions.......... 6.0

 

   Full-time equated classified positions.......... 175.2

 

Director and other unclassified--6.0 FTE positions..... $        598,600

 

Departmental administration and management--165.2 FTE

 


   positions............................................        22,770,500

 

Worker's compensation program..........................         8,855,200

 

Rent and building occupancy............................        10,862,500

 

Developmental disabilities council and projects--10.0

 

   FTE positions........................................      2,847,500

 

GROSS APPROPRIATION.................................... $     45,934,300

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................        13,900,700

 

   Special revenue funds:

 

Total private revenues.................................            35,900

 

Total other state restricted revenues..................         2,514,000

 

State general fund/general purpose..................... $     29,483,700

 

   Sec. 103. MENTAL HEALTH/SUBSTANCE ABUSE SERVICES

 

ADMINISTRATION AND SPECIAL PROJECTS

 

   Full-time equated classified positions.......... 107.5

 

Mental health/substance abuse program administration--

 

   106.5 FTE positions.................................. $     13,917,000

 

Gambling addiction--1.0 FTE position...................         3,000,000

 

Protection and advocacy services support...............           194,400

 

Community residential and support services.............         1,893,500

 

Highway safety projects................................           400,000

 

Federal and other special projects.....................         2,497,200

 

Family support subsidy.................................        19,470,500

 

Housing and support services...........................        9,306,800

 

GROSS APPROPRIATION.................................... $     50,679,400

 

    Appropriated from:

 


   Federal revenues:

 

Total federal revenues.................................        35,352,200

 

   Special revenue funds:

 

Total private revenues.................................           190,000

 

Total other state restricted revenues..................         3,000,000

 

State general fund/general purpose..................... $     12,137,200

 

   Sec. 104. COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE

 

SERVICES PROGRAMS

 

   Full-time equated classified positions............ 9.5

 

Medicaid mental health services........................ $  2,035,793,800

 

Community mental health non-Medicaid services..........       283,912,600

 

Medicaid adult benefits waiver.........................        32,054,900

 

Multicultural services.................................         5,459,000

 

Medicaid substance abuse services......................        42,917,500

 

CMHSP, purchase of state services contracts............       127,817,700

 

Civil service charges..................................         1,499,300

 

Federal mental health block grant--2.5 FTE positions...        15,392,100

 

Community substance abuse prevention, education, and

 

   treatment programs...................................        77,421,200

 

Children's waiver home care program....................        21,049,800

 

Nursing home PAS/ARR-OBRA--7.0 FTE positions...........        12,155,600

 

Children with serious emotional disturbance waiver.....        7,188,000

 

GROSS APPROPRIATION.................................... $  2,662,661,500

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

Interdepartmental grant from the department of human

 

   services.............................................         1,769,000

 


   Federal revenues:

 

Total other federal revenues...........................     1,495,945,900

 

Federal FMAP stimulus revenues (ARRA)..................       153,921,200

 

   Special revenue funds:

 

Total local revenues...................................        25,228,900

 

Total other state restricted revenues..................        20,655,200

 

State general fund/general purpose..................... $    965,141,300

 

   Sec. 105. STATE PSYCHIATRIC HOSPITALS, CENTERS FOR

 

PERSONS WITH DEVELOPMENTAL DISABILITIES, AND FORENSIC

 

AND PRISON MENTAL HEALTH SERVICES

 

   Total average population........................ 893.0

 

   Full-time equated classified positions........ 2,590.5

 

Caro Regional Mental Health Center - psychiatric

 

   hospital - adult--468.3 FTE positions................ $     55,267,100

 

   Average population.............................. 185.0

 

Kalamazoo Psychiatric Hospital - adult--483.1 FTE

 

   positions............................................        53,493,900

 

   Average population.............................. 189.0

 

Walter P. Reuther Psychiatric Hospital - adult--433.3

 

   FTE positions........................................        50,087,200

 

   Average population.............................. 234.0

 

Hawthorn Center - psychiatric hospital - children and

 

   adolescents--230.9 FTE positions.....................        26,003,000

 

   Average population............................... 75.0

 

Center for forensic psychiatry--578.6 FTE positions....        64,528,600

 

   Average population.............................. 210.0

 

Forensic mental health services provided to the

 


   department of corrections--396.3 FTE positions.......        50,727,300

 

Revenue recapture......................................           750,000

 

IDEA, federal special education........................           120,000

 

Special maintenance....................................           332,500

 

Purchase of medical services for residents of

 

   hospitals and centers................................           445,600

 

Gifts and bequests for patient living and treatment

 

   environment..........................................        1,000,000

 

GROSS APPROPRIATION.................................... $    302,755,200

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

Interdepartmental grant from the department of

 

   corrections..........................................        50,727,300

 

   Federal revenues:

 

Total other federal revenues...........................        28,728,400

 

Federal FMAP stimulus revenues (ARRA)..................         2,154,900

 

   Special revenue funds:

 

CMHSP, purchase of state services contracts............       127,817,700

 

Other local revenues...................................        16,915,200

 

Total private revenues.................................         1,000,000

 

Total other state restricted revenues..................        15,724,300

 

State general fund/general purpose..................... $     59,687,400

 

   Sec. 106. PUBLIC HEALTH ADMINISTRATION

 

   Full-time equated classified positions........... 91.7

 

Public health administration--7.3 FTE positions........ $      1,513,800

 

Minority health grants and contracts--3.0 FTE

 

   positions............................................         1,117,000

 


Promotion of healthy behaviors.........................           675,900

 

Vital records and health statistics--81.4 FTE

 

   positions............................................        9,286,000

 

GROSS APPROPRIATION.................................... $     12,592,700

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

Interdepartmental grant from the department of human

 

   services.............................................         1,150,600

 

   Federal revenues:

 

Total federal revenues.................................         4,969,200

 

   Special revenue funds:

 

Total other state restricted revenues..................         5,268,200

 

State general fund/general purpose..................... $      1,204,700

 

   Sec. 107. HEALTH POLICY, REGULATION, AND PROFESSIONS

 

   Full-time equated classified positions.......... 430.6

 

Health systems administration--193.6 FTE positions..... $     20,124,900

 

Emergency medical services program state staff--8.5

 

   FTE positions........................................         1,321,200

 

Radiological health administration--21.4 FTE positions.         3,074,500

 

Emergency medical services grants and services.........           660,000

 

Health professions--152.0 FTE positions................        25,675,400

 

Background check program--5.5 FTE positions............           579,900

 

Health policy and regulation, administration

 

   --30.2 FTE positions.................................         3,781,200

 

Nurse scholarship, education, and research program--

 

   3.0 FTE positions....................................         1,737,800

 

Certificate of need program administration--14.0 FTE

 


   positions............................................         2,036,000

 

Rural health services--1.0 FTE position................         1,409,600

 

Michigan essential health provider.....................           872,700

 

Primary care services-—1.4 FTE positions...............        4,175,300

 

GROSS APPROPRIATION.................................... $     65,448,500

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

Interdepartmental grant from the department of

 

   treasury, Michigan state hospital finance authority..           116,300

 

   Federal revenues:

 

Total federal revenues.................................        24,664,600

 

   Special revenue funds:

 

Total local revenues...................................           100,000

 

Total private revenues.................................           455,000

 

Total other state restricted revenues..................        31,544,200

 

State general fund/general purpose..................... $      8,568,400

 

   Sec. 108. INFECTIOUS DISEASE CONTROL

 

   Full-time equated classified positions........... 50.7

 

AIDS prevention, testing, and care programs--12.7 FTE

 

   positions............................................ $     46,456,800

 

Immunization local agreements..........................        13,725,200

 

Immunization program management and field support--

 

   15.0 FTE positions...................................         2,119,000

 

Pediatric AIDS prevention and control--1.0 FTE

 

   position.............................................         1,231,300

 

Sexually transmitted disease control local agreements..         3,360,700

 

Sexually transmitted disease control management and

 


   field support-—22.0 FTE positions....................        3,744,600

 

GROSS APPROPRIATION.................................... $     70,637,600

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................        43,447,000

 

   Special revenue funds:

 

Total private revenues.................................        14,707,700

 

Total other state restricted revenues..................         9,606,300

 

State general fund/general purpose..................... $      2,876,600

 

   Sec. 109. LABORATORY SERVICES

 

   Full-time equated classified positions.......... 109.0

 

Laboratory services--109.0 FTE positions............... $     16,653,600

 

GROSS APPROPRIATION.................................... $     16,653,600

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

Interdepartmental grant from the department of

 

   natural resources and environment....................           461,100

 

   Federal revenues:

 

Total federal revenues.................................         1,818,100

 

   Special revenue funds:

 

Total other state restricted revenues..................         7,966,400

 

State general fund/general purpose..................... $      6,408,000

 

   Sec. 110. EPIDEMIOLOGY

 

   Full-time equated classified positions.......... 127.7

 

AIDS surveillance and prevention program............... $      2,254,100

 

Asthma prevention and control--2.6 FTE positions.......           857,100

 

Bioterrorism preparedness--68.6 FTE positions..........        49,259,700

 


Epidemiology administration--39.0 FTE positions........         8,090,500

 

Lead abatement program--7.0 FTE positions..............         2,442,500

 

Newborn screening follow-up and treatment services--

 

   10.5 FTE positions...................................         4,740,800

 

Tuberculosis control and prevention....................          867,000

 

GROSS APPROPRIATION.................................... $     68,511,700

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................        61,104,800

 

   Special revenue funds:

 

Total private revenues.................................            25,000

 

Total other state restricted revenues..................         5,572,800

 

State general fund/general purpose..................... $      1,809,100

 

   Sec. 111. LOCAL HEALTH ADMINISTRATION AND GRANTS

 

Implementation of 1993 PA 133, MCL 333.17015........... $         20,000

 

Local health services..................................           100,000

 

Local public health operations.........................        37,379,700

 

Medicaid outreach cost reimbursement to local health

 

   departments..........................................        9,000,000

 

GROSS APPROPRIATION.................................... $     46,499,700

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................         9,000,000

 

   Special revenue funds:

 

Total local revenues...................................         5,150,000

 

Total other state restricted revenues..................           100,000

 

State general fund/general purpose..................... $     32,249,700

 


   Sec. 112. CHRONIC DISEASE AND INJURY PREVENTION AND

 

HEALTH PROMOTION

 

   Full-time equated classified positions........... 75.5

 

Alzheimer's information network........................ $         99,500

 

Cancer prevention and control program--12.0 FTE

 

   positions............................................        14,565,700

 

Chronic disease control and health promotion

 

   administration--33.4 FTE positions...................         6,696,700

 

Diabetes and kidney program--12.2 FTE positions........         2,578,100

 

Public health traffic safety coordination--1.0 FTE

 

   position.............................................           287,500

 

Smoking prevention program--14.0 FTE positions.........         4,656,500

 

Violence prevention--2.9 FTE positions.................        1,676,700

 

GROSS APPROPRIATION.................................... $     30,560,700

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................        22,953,100

 

   Special revenue funds:

 

Total private revenues.................................            61,600

 

Total other state restricted revenues..................         5,825,700

 

State general fund/general purpose..................... $      1,720,300

 

   Sec. 113. FAMILY, MATERNAL, AND CHILDREN'S HEALTH

 

SERVICES

 

   Full-time equated classified positions........... 53.6

 

Childhood lead program--6.0 FTE positions.............. $      1,597,300

 

Dental programs--3.0 FTE positions.....................           869,400

 

Dental program for persons with developmental

 


   disabilities.........................................           151,000

 

Family, maternal, and children's health services

 

   administration--43.6 FTE positions...................         5,890,700

 

Family planning local agreements.......................         9,085,700

 

Local MCH services.....................................         7,018,100

 

Pregnancy prevention program...........................         1,707,300

 

School health and education programs--1.0 FTE

 

   position.............................................           405,500

 

Special projects.......................................         2,290,200

 

Sudden infant death syndrome program...................          321,300

 

GROSS APPROPRIATION.................................... $     29,336,500

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................        24,352,500

 

   Special revenue funds:

 

Total local revenues...................................            75,000

 

Total other state restricted revenues..................         1,505,200

 

State general fund/general purpose..................... $      3,403,800

 

   Sec. 114. WOMEN, INFANTS, AND CHILDREN FOOD AND

 

NUTRITION PROGRAM

 

   Full-time equated classified positions........... 45.0

 

Women, infants, and children program administration

 

   and special projects--45.0 FTE positions............. $     13,631,700

 

Women, infants, and children program local agreements

 

   and food costs.......................................      253,825,500

 

GROSS APPROPRIATION.................................... $    267,457,200

 

    Appropriated from:

 


   Federal revenues:

 

Total federal revenues.................................       208,847,000

 

   Special revenue funds:

 

Total private revenues.................................        58,610,200

 

State general fund/general purpose..................... $              0

 

   Sec. 115. CHILDREN'S SPECIAL HEALTH CARE SERVICES

 

   Full-time equated classified positions........... 47.8

 

Children's special health care services

 

   administration--45.0 FTE positions................... $      5,150,700

 

Bequests for care and services--2.8 FTE positions......         1,514,600

 

Outreach and advocacy..................................         3,773,500

 

Nonemergency medical transportation....................         1,527,600

 

Medical care and treatment.............................      236,106,900

 

GROSS APPROPRIATION.................................... $    248,073,300

 

    Appropriated from:

 

   Federal revenues:

 

Total other federal revenues...........................       140,504,600

 

Federal FMAP stimulus revenues (ARRA)..................        12,863,300

 

   Special revenue funds:

 

Total private revenues.................................         1,000,000

 

Total other state restricted revenues..................         3,841,000

 

State general fund/general purpose..................... $     89,864,400

 

   Sec. 116. CRIME VICTIM SERVICES COMMISSION

 

   Full-time equated classified positions........... 11.0

 

Grants administration services--11.0 FTE positions..... $      1,555,900

 

Justice assistance grants..............................        13,000,000

 

Crime victim rights services grants....................       12,500,000

 


GROSS APPROPRIATION.................................... $     27,055,900

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................        16,567,500

 

   Special revenue funds:

 

Total other state restricted revenues..................        10,488,400

 

State general fund/general purpose..................... $              0

 

   Sec. 117. OFFICE OF SERVICES TO THE AGING

 

   Full-time equated classified positions........... 43.5

 

Office of services to aging administration--43.5 FTE

 

   positions............................................ $      7,190,900

 

Community services.....................................        34,149,400

 

Nutrition services.....................................        35,360,200

 

Foster grandparent volunteer program...................         2,233,600

 

Retired and senior volunteer program...................           627,300

 

Senior companion volunteer program.....................         1,604,400

 

Employment assistance..................................         3,792,500

 

Respite care program...................................        5,868,700

 

GROSS APPROPRIATION.................................... $     90,827,000

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................        56,781,900

 

   Special revenue funds:

 

Total private revenues.................................           610,000

 

Merit award trust fund.................................         4,468,700

 

Total other state restricted revenues..................         1,400,000

 

State general fund/general purpose..................... $     27,566,400

 


   Sec. 118. MEDICAL SERVICES ADMINISTRATION

 

   Full-time equated classified positions.......... 388.0

 

Medical services administration--388.0 FTE positions... $     63,206,700

 

Facility inspection contract...........................           132,800

 

MIChild administration.................................        4,327,800

 

GROSS APPROPRIATION.................................... $     67,667,300

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................        46,246,700

 

   Special revenue funds:

 

Total local revenues...................................           107,000

 

Total private revenues.................................           100,000

 

Total other state restricted revenues..................           105,300

 

State general fund/general purpose..................... $     21,108,300

 

   Sec. 119. MEDICAL SERVICES

 

Hospital services and therapy.......................... $  1,329,191,000

 

Hospital disproportionate share payments...............        45,000,000

 

Physician services.....................................       505,169,200

 

Medicare premium payments..............................       399,145,000

 

Pharmaceutical services................................       305,134,300

 

Home health services...................................         5,336,200

 

Hospice services.......................................       114,175,200

 

Transportation.........................................        12,993,300

 

Auxiliary medical services.............................         2,741,000

 

Dental services........................................       125,352,200

 

Ambulance services.....................................        11,871,200

 

Long-term care services................................     1,621,772,100

 


Medicaid home- and community-based services waiver.....       189,566,800

 

Adult home help services...............................       305,534,800

 

Personal care services.................................        14,605,900

 

Program of all-inclusive care for the elderly..........        16,600,000

 

Health plan services...................................     4,371,469,100

 

MIChild program........................................        53,063,700

 

Plan first family planning waiver......................        11,269,900

 

Medicaid adult benefits waiver.........................       104,856,800

 

Special indigent care payments.........................        88,518,500

 

Federal Medicare pharmaceutical program................       180,945,800

 

Promotion of healthy behavior waiver...................        10,000,000

 

Maternal and child health..............................        20,279,500

 

Subtotal basic medical services program................     9,844,591,500

 

School-based services..................................        64,630,600

 

Special Medicaid reimbursement.........................       332,191,500

 

Subtotal special medical services payments.............      396,822,100

 

GROSS APPROPRIATION.................................... $ 10,241,413,600

 

    Appropriated from:

 

   Federal revenues:

 

Total other federal revenues...........................     6,710,189,900

 

Federal FMAP stimulus revenues (ARRA)..................       682,461,200

 

   Special revenue funds:

 

Total local revenues...................................        56,980,900

 

Total private revenues.................................         3,477,100

 

Merit award trust fund.................................       144,751,800

 

Total other state restricted revenues..................     1,902,593,600

 

State general fund/general purpose..................... $    740,959,100

 


   Sec. 120. INFORMATION TECHNOLOGY

 

Information technology services and projects........... $     35,364,200

 

Michigan Medicaid information system...................       16,801,100

 

GROSS APPROPRIATION.................................... $     52,165,300

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................        36,675,900

 

   Special revenue funds:

 

Total other state restricted revenues..................         3,216,000

 

State general fund/general purpose..................... $     12,273,400

 

 

 

 

 

PART 2

 

PROVISIONS CONCERNING APPROPRIATIONS

 

GENERAL SECTIONS

 

     Sec. 201. Pursuant to section 30 of article IX of the state

 

constitution of 1963, total state spending from state resources

 

under part 1 for fiscal year 2010-2011 is $4,196,608,900.00 and

 

state spending from state resources to be paid to local units of

 

government for fiscal year 2010-2011 is $1,214,931,400.00. The

 

itemized statement below identifies appropriations from which

 

spending to local units of government will occur:

 

DEPARTMENT OF COMMUNITY HEALTH

 

MENTAL HEALTH/SUBSTANCE ABUSE SERVICES ADMINISTRATION

 

AND SPECIAL PROJECTS

 

Community residential and support services............. $        286,400

 

Housing and support services...........................           599,800

 


COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES PROGRAMS

 

Community substance abuse prevention, education, and

 

    treatment programs.................................. $      9,671,100

 

Medicaid mental health services........................       521,781,800

 

Community mental health non-Medicaid services..........       283,912,600

 

Medicaid adult benefits waiver.........................        10,966,000

 

Multicultural services.................................         4,803,800

 

Medicaid substance abuse services......................        11,522,400

 

Children's waiver home care program....................         5,254,000

 

Nursing home PASARR....................................         2,705,100

 

Public health administration

 

Minority health grants and contracts................... $        190,000

 

Health policy, regulation, and professions

 

Primary care services.................................. $         88,900

 

INFECTIOUS DISEASE CONTROL

 

AIDS prevention, testing, and care programs............ $      1,000,000

 

Immunization local agreements..........................         1,750,000

 

Sexually transmitted disease control local agreements..           235,200

 

LABORATORY SERVICES

 

Laboratory services.................................... $         13,700

 

LOCAL HEALTH ADMINISTRATION AND GRANTS

 

Implementation of 1993 PA 133, MCL 333.17015........... $          8,000

 

Local public health operations.........................        32,229,700

 

CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH PROMOTION

 

Cancer prevention and control program.................. $        450,000

 

Chronic disease prevention.............................           261,600

 

Diabetes and kidney program............................            54,500

 


Smoking prevention program.............................           800,000

 

FAMILY, MATERNAL, AND CHILDREN'S HEALTH SERVICES

 

Childhood lead program................................. $         51,100

 

Pregnancy prevention program...........................            90,000

 

School health education programs.......................           250,000

 

CHILDREN'S SPECIAL HEALTH CARE SERVICES

 

Medical care and treatment............................. $        895,700

 

Outreach and advocacy..................................         1,237,500

 

MEDICAL SERVICES

 

Dental services........................................ $      2,005,600

 

Long-term care services................................       269,214,200

 

Transportation.........................................         2,572,700

 

Medicaid adult benefits waiver.........................         6,186,600

 

Hospital services and therapy..........................         5,316,800

 

Physician services.....................................         4,251,500

 

OFFICE OF SERVICES TO THE AGING

 

Community services..................................... $     12,233,500

 

Nutrition services.....................................         8,787,000

 

Foster grandparent volunteer program...................           679,800

 

Retired and senior volunteer program...................           175,000

 

Senior companion volunteer program.....................           215,000

 

Respite care program...................................         5,384,800

 

CRIME VICTIM SERVICES COMMISSION

 

Crime victim rights services grants.................... $      6,800,000

 

TOTAL OF PAYMENTS TO LOCAL UNITS

 

OF GOVERNMENT.......................................... $  1,214,931,400

 

     Sec. 202. (1) The appropriations authorized under this bill

 


are subject to the management and budget act, 1984 PA 431, MCL

 

18.1101 to 18.1594.

 

     (2) Funds for which the state is acting as the custodian or

 

agent are not subject to annual appropriation.

 

     Sec. 203. As used in this bill:

 

     (a) "AIDS" means acquired immunodeficiency syndrome.

 

     (b) "ARRA" means the American recovery and reinvestment act of

 

2009, Public Law 111-5.

 

     (c) "CMHSP" means a community mental health services program

 

as that term is defined in section 100a of the mental health code,

 

1974 PA 258, MCL 330.1100a.

 

     (d) "Current fiscal year" means the fiscal year ending

 

September 30, 2011.

 

     (e) "Department" means the Michigan department of community

 

health.

 

     (f) "Director" means the director of the department.

 

     (g) "DSH" means disproportionate share hospital.

 

     (h) "EPSDT" means early and periodic screening, diagnosis, and

 

treatment.

 

     (i) "Federal poverty level" means the poverty guidelines

 

published annually in the federal register by the United States

 

department of health and human services under its authority to

 

revise the poverty line under 42 USC 9902.

 

     (j) "FMAP" means federal medical assistance percentages.

 

     (k) "FTE" means full-time equated.

 

     (l) "GME" means graduate medical education.

 

     (m) "Health plan" means, at a minimum, an organization that

 


meets the criteria for delivering the comprehensive package of

 

services under the department's comprehensive health plan.

 

     (n) "HIV/AIDS" means human immunodeficiency virus/acquired

 

immune deficiency syndrome.

 

     (o) "HMO" means health maintenance organization.

 

     (p) "IDEA" means the individuals with disabilities education

 

act, 20 USC 1400 to 1482.

 

     (q) "IDG" means interdepartmental grant.

 

     (r) "MCH" means maternal and child health.

 

     (s) "MIChild" means the program described in section 1670.

 

     (t) "MIHP" means the maternal infant health program.

 

     (u) "PASARR" means the preadmission screening and annual

 

resident review required under the omnibus budget reconciliation

 

act of 1987, section 1919(e)(7) of the social security act, 42 USC

 

1396r.

 

     (v) "PIHP" means a specialty prepaid inpatient health plan for

 

Medicaid mental health services, services to persons with

 

developmental disabilities, and substance abuse services as

 

described in section 232b of the mental health code, 1974 PA 258,

 

MCL 330.1232b.

 

     (w) "Title XVIII" means title XVIII of the social security

 

act, 42 USC 1395 to 1395iii.

 

     (x) "Title XIX" means title XIX of the social security act, 42

 

USC 1396 to 1396w-1.

 

     (y) "Title XX" means title XX of the social security act, 42

 

USC 1397 to 1397f.

 

     (z) "WIC" means women, infants, and children supplemental

 


nutrition program.

 

     Sec. 204. The civil service commission shall bill the

 

department at the end of the first fiscal quarter for the charges

 

authorized by section 5 of article XI of the state constitution of

 

1963. The department shall pay the total amount of the billing by

 

the end of the second fiscal quarter.

 

     Sec. 206. (1) In addition to the funds appropriated in part 1,

 

there is appropriated an amount not to exceed $100,000,000.00 for

 

federal contingency funds. These funds are not available for

 

expenditure until they have been transferred to another line item

 

in this bill under section 393(2) of the management and budget act,

 

1984 PA 431, MCL 18.1393.

 

     (2) In addition to the funds appropriated in part 1, there is

 

appropriated an amount not to exceed $20,000,000.00 for state

 

restricted contingency funds. These funds are not available for

 

expenditure until they have been transferred to another line item

 

in this bill under section 393(2) of the management and budget act,

 

1984 PA 431, MCL 18.1393.

 

     (3) In addition to the funds appropriated in part 1, there is

 

appropriated an amount not to exceed $20,000,000.00 for local

 

contingency funds. These funds are not available for expenditure

 

until they have been transferred to another line item in this bill

 

under section 393(2) of the management and budget act, 1984 PA 431,

 

MCL 18.1393.

 

     (4) In addition to the funds appropriated in part 1, there is

 

appropriated an amount not to exceed $10,000,000.00 for private

 

contingency funds. These funds are not available for expenditure

 


until they have been transferred to another line item in this bill

 

under section 393(2) of the management and budget act, 1984 PA 431,

 

MCL 18.1393.

 

     Sec. 208. The department shall use the Internet to fulfill the

 

reporting requirements of this bill. This requirement may include

 

transmission of reports via electronic mail to the recipients

 

identified for each reporting requirement, or it may include

 

placement of reports on the Internet or Intranet site.

 

     Sec. 209. Funds appropriated in part 1 shall not be used for

 

the purchase of foreign goods or services, or both, if

 

competitively priced and of comparable quality American goods or

 

services, or both, are available. Preference shall be given to

 

goods or services, or both, manufactured or provided by Michigan

 

businesses if they are competitively priced and of comparable

 

quality. In addition, preference shall be given to goods or

 

services, or both, that are manufactured or provided by Michigan

 

businesses owned and operated by veterans if they are competitively

 

priced and of comparable quality.

 

     Sec. 210. The director shall take all reasonable steps to

 

ensure businesses in deprived and depressed communities compete for

 

and perform contracts to provide services or supplies, or both. The

 

director shall strongly encourage firms with which the department

 

contracts to subcontract with certified businesses in depressed and

 

deprived communities for services, supplies, or both.

 

     Sec. 211. (1) If the revenue collected by the department from

 

fees and collections exceeds the amount appropriated in part 1, the

 

revenue may be carried forward with the approval of the state

 


budget director into the subsequent fiscal year. The revenue

 

carried forward under this section shall be used as the first

 

source of funds in the subsequent fiscal year.

 

     (2) The department shall provide a report to the senate and

 

house appropriations subcommittees on community health and the

 

senate and house fiscal agencies on the balance of each of the

 

restricted funds administered by the department as of September 30

 

of the current fiscal year.

 

     Sec. 212. (1) On or before February 1 of the current fiscal

 

year, the department shall report to the house and senate

 

appropriations subcommittees on community health, the house and

 

senate fiscal agencies, and the state budget director on the

 

detailed name and amounts of federal, restricted, private, and

 

local sources of revenue that support the appropriations in each of

 

the line items in part 1 of this bill.

 

     (2) Upon the release of the next fiscal year executive budget

 

recommendation, the department shall report to the same parties in

 

subsection (1) on the amounts and detailed sources of federal,

 

restricted, private, and local revenue proposed to support the

 

total funds appropriated in each of the line items in part 1 of the

 

next fiscal year executive budget proposal.

 

     Sec. 213. The state departments, agencies, and commissions

 

receiving tobacco tax funds and healthy Michigan funds from part 1

 

shall report by April 1 of the current fiscal year to the senate

 

and house appropriations committees, the senate and house fiscal

 

agencies, and the state budget director on the following:

 

     (a) Detailed spending plan by appropriation line item

 


including description of programs and a summary of organizations

 

receiving these funds.

 

     (b) Description of allocations or bid processes including need

 

or demand indicators used to determine allocations.

 

     (c) Eligibility criteria for program participation and maximum

 

benefit levels where applicable.

 

     (d) Outcome measures used to evaluate programs, including

 

measures of the effectiveness of these programs in improving the

 

health of Michigan residents.

 

     (e) Any other information considered necessary by the house of

 

representatives or senate appropriations committees or the state

 

budget director.

 

     Sec. 214. The use of state restricted tobacco tax revenue

 

received for the purpose of tobacco prevention, education, and

 

reduction efforts and deposited in the healthy Michigan fund shall

 

not be used for lobbying as defined in section 5 of 1978 PA 472,

 

MCL 4.415, and shall not be used in attempting to influence the

 

decisions of the legislature, the governor, or any state agency.

 

     Sec. 216. (1) In addition to funds appropriated in part 1 for

 

all programs and services, there is appropriated for write-offs of

 

accounts receivable, deferrals, and for prior year obligations in

 

excess of applicable prior year appropriations, an amount equal to

 

total write-offs and prior year obligations, but not to exceed

 

amounts available in prior year revenues.

 

     (2) The department's ability to satisfy appropriation

 

deductions in part 1 shall not be limited to collections and

 

accruals pertaining to services provided in the current fiscal

 


year, but shall also include reimbursements, refunds, adjustments,

 

and settlements from prior years.

 

     (3) The department shall report by March 15 of the current

 

fiscal year to the house of representatives and senate

 

appropriations subcommittees on community health on all

 

reimbursements, refunds, adjustments, and settlements from prior

 

years.

 

     Sec. 218. The department shall include the following in its

 

annual list of proposed basic health services as required in part

 

23 of the public health code, 1978 PA 368, MCL 333.2301 to

 

333.2321:

 

     (a) Immunizations.

 

     (b) Communicable disease control.

 

     (c) Sexually transmitted disease control.

 

     (d) Tuberculosis control.

 

     (e) Prevention of gonorrhea eye infection in newborns.

 

     (f) Screening newborns for the conditions listed in section

 

5431 of the public health code, 1978 PA 368, MCL 333.5431, or

 

recommended by the newborn screening quality assurance advisory

 

committee created under section 5430 of the public health code,

 

1978 PA 368, MCL 333.5430.

 

     (g) Community health annex of the Michigan emergency

 

management plan.

 

     (h) Prenatal care.

 

     Sec. 219. (1) The department may contract with the Michigan

 

public health institute for the design and implementation of

 

projects and for other public health-related activities prescribed

 


in section 2611 of the public health code, 1978 PA 368, MCL

 

333.2611. The department may develop a master agreement with the

 

institute to carry out these purposes for up to a 3-year period.

 

The department shall report to the house and senate appropriations

 

subcommittees on community health, the house and senate fiscal

 

agencies, and the state budget director on or before November 1 and

 

May 1 of the current fiscal year all of the following:

 

     (a) A detailed description of each funded project.

 

     (b) The amount allocated for each project, the appropriation

 

line item from which the allocation is funded, and the source of

 

financing for each project.

 

     (c) The expected project duration.

 

     (d) A detailed spending plan for each project, including a

 

list of all subgrantees and the amount allocated to each

 

subgrantee.

 

     (2) On or before September 30 of the current fiscal year, the

 

department shall provide to the same parties listed in subsection

 

(1) a copy of all reports, studies, and publications produced by

 

the Michigan public health institute, its subcontractors, or the

 

department with the funds appropriated in part 1 and allocated to

 

the Michigan public health institute.

 

     Sec. 220. All contracts with the Michigan public health

 

institute funded with appropriations in part 1 shall include a

 

requirement that the Michigan public health institute submit to

 

financial and performance audits by the state auditor general of

 

projects funded with state appropriations.

 

     Sec. 223. The department may establish and collect fees for

 


publications, videos and related materials, conferences, and

 

workshops. Collected fees shall be used to offset expenditures to

 

pay for printing and mailing costs of the publications, videos and

 

related materials, and costs of the workshops and conferences. The

 

department shall not collect fees under this section that exceed

 

the cost of the expenditures.

 

     Sec. 259. From the funds appropriated in part 1 for

 

information technology, the department shall pay user fees to the

 

department of technology, management, and budget for technology-

 

related services and projects. Such user fees shall be subject to

 

provisions of an interagency agreement between the department and

 

the department of technology, management, and budget.

 

     Sec. 266. (1) Due to the current budgetary problems in this

 

state, out-of-state travel shall be limited to situations in which

 

1 or more of the following conditions apply:

 

     (a) The travel is required by legal mandate or court order or

 

for law enforcement purposes.

 

     (b) The travel is necessary to protect the health or safety of

 

Michigan citizens or visitors or to assist other states in similar

 

circumstances.

 

     (c) The travel is necessary to produce budgetary savings or to

 

increase state revenues, including protecting existing federal

 

funds or securing additional federal funds.

 

     (d) The travel is necessary to comply with federal

 

requirements.

 

     (e) The travel is necessary to secure specialized training for

 

staff that is not available within this state.

 


     (f) The travel is financed entirely by federal or nonstate

 

funds.

 

     (2) Not later than January 1 of each year, each department

 

shall prepare a travel report listing all travel by classified and

 

unclassified employees outside this state in the immediately

 

preceding fiscal year that was funded in whole or in part with

 

funds appropriated in the department's budget. The report shall be

 

submitted to the senate and house standing committees on

 

appropriations, the senate and house fiscal agencies, and the state

 

budget director. The report shall include the following

 

information:

 

     (a) The name of each person receiving reimbursement for travel

 

outside this state or whose travel costs were paid by this state.

 

     (b) The destination of each travel occurrence.

 

     (c) The dates of each travel occurrence.

 

     (d) A brief statement of the reason for each travel

 

occurrence.

 

     (e) The transportation and related costs of each travel

 

occurrence, including the proportion funded with state general

 

fund/general purpose revenues, the proportion funded with state

 

restricted revenues, the proportion funded with federal revenues,

 

and the proportion funded with other revenues.

 

     (f) A total of all out-of-state travel funded for the

 

immediately preceding fiscal year.

 

     Sec. 269. The amount appropriated in part 1 for medical

 

services pharmaceutical services includes funds to cover

 

reimbursement of mental health medications under the Medicaid

 


program.

 

     Sec. 276. Funds appropriated in part 1 shall not be used by a

 

principal executive department, state agency, or authority to hire

 

a person to provide legal services that are the responsibility of

 

the attorney general. This prohibition does not apply to legal

 

services for bonding activities and for those activities that the

 

attorney general authorizes.

 

DEPARTMENTWIDE ADMINISTRATION

 

     Sec. 301. From funds appropriated for worker's compensation,

 

the department may make payments in lieu of worker's compensation

 

payments for wage and salary and related fringe benefits for

 

employees who return to work under limited duty assignments.

 

     Sec. 303. The department shall not require first-party payment

 

from individuals or families with a taxable income of $10,000.00 or

 

less for mental health services for determinations made under

 

section 818 of the mental health code, 1974 PA 258, MCL 330.1818.

 

MENTAL HEALTH/SUBSTANCE ABUSE SERVICES ADMINISTRATION AND SPECIAL

 

PROJECTS

 

     Sec. 350. The department may enter into a contract with the

 

protection and advocacy agency, authorized under section 931 of the

 

mental health code, 1974 PA 258, MCL 330.1931, or a similar

 

organization to provide legal services for purposes of gaining and

 

maintaining occupancy in a community living arrangement that is

 

under lease or contract with the department or a community mental

 

health services program to provide services to persons with mental

 

illness or developmental disability.

 

COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES PROGRAMS

 


     Sec. 401. Funds appropriated in part 1 are intended to support

 

a system of comprehensive community mental health services under

 

the full authority and responsibility of local CMHSPs or PIHPs. The

 

department shall ensure that each CMHSP or PIHP provides all of the

 

following:

 

     (a) A system of single entry and single exit.

 

     (b) A complete array of mental health services that includes,

 

but is not limited to, all of the following services: residential

 

and other individualized living arrangements, outpatient services,

 

acute inpatient services, and long-term, 24-hour inpatient care in

 

a structured, secure environment.

 

     (c) The coordination of inpatient and outpatient hospital

 

services through agreements with state-operated psychiatric

 

hospitals, units, and centers in facilities owned or leased by the

 

state, and privately-owned hospitals, units, and centers licensed

 

by the state pursuant to sections 134 through 149b of the mental

 

health code, 1974 PA 258, MCL 330.1134 to 330.1149b.

 

     (d) Individualized plans of service that are sufficient to

 

meet the needs of individuals, including those discharged from

 

psychiatric hospitals or centers, and that ensure the full range of

 

recipient needs is addressed through the CMHSP's or PIHP's program

 

or through assistance with locating and obtaining services to meet

 

these needs.

 

     (e) A system of case management or care management to monitor

 

and ensure the provision of services consistent with the

 

individualized plan of services or supports.

 

     (f) A system of continuous quality improvement.

 


     (g) A system to monitor and evaluate the mental health

 

services provided.

 

     (h) A system that serves at-risk and delinquent youth as

 

required under the provisions of the mental health code, 1974 PA

 

258, MCL 330.1001 to 330.2106.

 

     Sec. 402. (1) From funds appropriated in part 1, final

 

authorizations to CMHSPs or PIHPs shall be made upon the execution

 

of contracts between the department and CMHSPs or PIHPs. The

 

contracts shall contain an approved plan and budget as well as

 

policies and procedures governing the obligations and

 

responsibilities of both parties to the contracts. Each contract

 

with a CMHSP or PIHP that the department is authorized to enter

 

into under this subsection shall include a provision that the

 

contract is not valid unless the total dollar obligation for all of

 

the contracts between the department and the CMHSPs or PIHPs

 

entered into under this subsection for the current fiscal year does

 

not exceed the amount of money appropriated in part 1 for the

 

contracts authorized under this subsection.

 

     (2) The department shall immediately report to the senate and

 

house appropriations subcommittees on community health, the senate

 

and house fiscal agencies, and the state budget director if either

 

of the following occurs:

 

     (a) Any new contracts with CMHSPs or PIHPs that would affect

 

rates or expenditures are enacted.

 

     (b) Any amendments to contracts with CMHSPs or PIHPs that

 

would affect rates or expenditures are enacted.

 

     (3) The report required by subsection (2) shall include

 


information about the changes and their effects on rates and

 

expenditures.

 

     Sec. 403. (1) From the funds appropriated in part 1 for

 

multicultural services, the department shall ensure that CMHSPs or

 

PIHPs meet with multicultural service providers to develop a

 

workable framework for contracting, service delivery, and

 

reimbursement.

 

     (2) Funds appropriated in part 1 for multicultural services

 

shall not be utilized for services provided to illegal immigrants,

 

fugitive felons, and people who are not residents of this state.

 

The department shall maintain contracts with recipients of

 

multicultural services grants that mandate grantees establish that

 

recipients of services are legally residing in the United States.

 

An exception to the contractual provision will be allowed to

 

address persons presenting with emergent mental health conditions.

 

     (3) The department shall require an annual report from the

 

independent organizations that receive multicultural services

 

funding. The annual report shall include specific information on

 

services and programs provided, the client base to which the

 

services and programs were provided, and the expenditures for those

 

services. The department shall provide the annual reports to the

 

senate and house appropriations subcommittees on community health

 

and the senate and house fiscal agencies.

 

     Sec. 404. (1) Not later than May 31 of the current fiscal

 

year, the department shall provide a report on the community mental

 

health services programs to the members of the house and senate

 

appropriations subcommittees on community health, the house and

 


senate fiscal agencies, and the state budget director that includes

 

the information required by this section.

 

     (2) The report shall contain information for each CMHSP or

 

PIHP and a statewide summary, each of which shall include at least

 

the following information:

 

     (a) A demographic description of service recipients which,

 

minimally, shall include reimbursement eligibility, client

 

population, age, ethnicity, housing arrangements, and diagnosis.

 

     (b) Per capita expenditures by client population group.

 

     (c) Financial information that, minimally, includes a

 

description of funding authorized; expenditures by client group and

 

fund source; and cost information by service category, including

 

administration. Service category includes all department-approved

 

services.

 

     (d) Data describing service outcomes that includes, but is not

 

limited to, an evaluation of consumer satisfaction, consumer

 

choice, and quality of life concerns including, but not limited to,

 

housing and employment.

 

     (e) Information about access to community mental health

 

services programs that includes, but is not limited to, the

 

following:

 

     (i) The number of people receiving requested services.

 

     (ii) The number of people who requested services but did not

 

receive services.

 

     (f) The number of second opinions requested under the code and

 

the determination of any appeals.

 

     (g) An analysis of information provided by CMHSPs in response

 


to the needs assessment requirements of the mental health code,

 

1974 PA 258, MCL 330.1001 to 330.2106, including information about

 

the number of persons in the service delivery system who have

 

requested and are clinically appropriate for different services.

 

     (h) Lapses and carryforwards during the immediately preceding

 

fiscal year for CMHSPs or PIHPs.

 

     (i) Information about contracts for mental health services

 

entered into by CMHSPs or PIHPs with providers, including, but not

 

limited to, all of the following:

 

     (i) The amount of the contract, organized by type of service

 

provided.

 

     (ii) Payment rates, organized by the type of service provided.

 

     (iii) Administrative costs for services provided to CMHSPs or

 

PIHPs.

 

     (j) Information on the community mental health Medicaid

 

managed care program, including, but not limited to, both of the

 

following:

 

     (i) Expenditures by each CMHSP or PIHP organized by Medicaid

 

eligibility group, including per eligible individual expenditure

 

averages.

 

     (ii) Performance indicator information required to be submitted

 

to the department in the contracts with CMHSPs or PIHPs.

 

     (k) An estimate of the number of direct care workers in local

 

residential settings and paraprofessional and other nonprofessional

 

direct care workers in settings where skill building, community

 

living supports and training, and personal care services are

 

provided by CMHSPs or PIHPs as of September 30 of the prior fiscal

 


year employed directly or through contracts with provider

 

organizations.

 

     (3) The department shall include data reporting requirements

 

listed in subsection (2) in the annual contract with each

 

individual CMHSP or PIHP.

 

     (4) The department shall take all reasonable actions to ensure

 

that the data required are complete and consistent among all CMHSPs

 

or PIHPs.

 

     Sec. 405. The employee wage pass-through funded in previous

 

years to the community mental health services programs for direct

 

care workers in local residential settings and for paraprofessional

 

and other nonprofessional direct care workers in settings where

 

skill building, community living supports and training, and

 

personal care services are provided shall continue to be paid to

 

direct care workers.

 

     Sec. 407. (1) The amount appropriated in part 1 for substance

 

abuse prevention, education, and treatment grants shall be expended

 

for contracting with coordinating agencies. Coordinating agencies

 

shall work with CMHSPs or PIHPs to coordinate care and services

 

provided to individuals with severe and persistent mental illness

 

and substance abuse diagnoses.

 

     (2) The department shall approve coordinating agency fee

 

schedules for providing substance abuse services and charge

 

participants in accordance with their ability to pay.

 

     (3) The coordinating agencies shall continue current efforts

 

to collaborate on the delivery of services to those clients with

 

mental illness and substance abuse diagnoses.

 


     Sec. 408. (1) By April 15 of the current fiscal year, the

 

department shall report the following data from the prior fiscal

 

year on substance abuse prevention, education, and treatment

 

programs to the senate and house appropriations subcommittees on

 

community health, the senate and house fiscal agencies, and the

 

state budget office:

 

     (a) Expenditures stratified by coordinating agency, by central

 

diagnosis and referral agency, by fund source, by subcontractor, by

 

population served, and by service type. Additionally, data on

 

administrative expenditures by coordinating agency shall be

 

reported.

 

     (b) Expenditures per state client, with data on the

 

distribution of expenditures reported using a histogram approach.

 

     (c) Number of services provided by central diagnosis and

 

referral agency, by subcontractor, and by service type.

 

Additionally, data on length of stay, referral source, and

 

participation in other state programs.

 

     (d) Collections from other first- or third-party payers,

 

private donations, or other state or local programs, by

 

coordinating agency, by subcontractor, by population served, and by

 

service type.

 

     (2) The department shall take all reasonable actions to ensure

 

that the required data reported are complete and consistent among

 

all coordinating agencies.

 

     Sec. 409. The funding in part 1 for substance abuse services

 

shall be distributed in a manner that provides priority to service

 

providers that furnish child care services to clients with

 


children.

 

     Sec. 410. The department shall assure that substance abuse

 

treatment is provided to applicants and recipients of public

 

assistance through the department of human services who are

 

required to obtain substance abuse treatment as a condition of

 

eligibility for public assistance.

 

     Sec. 411. (1) The department shall ensure that each contract

 

with a CMHSP or PIHP requires the CMHSP or PIHP to implement

 

programs to encourage diversion of persons with serious mental

 

illness, serious emotional disturbance, or developmental disability

 

from possible jail incarceration when appropriate.

 

     (2) Each CMHSP or PIHP shall have jail diversion services and

 

shall work toward establishing working relationships with

 

representative staff of local law enforcement agencies, including

 

county prosecutors' offices, county sheriffs' offices, county

 

jails, municipal police agencies, municipal detention facilities,

 

and the courts. Written interagency agreements describing what

 

services each participating agency is prepared to commit to the

 

local jail diversion effort and the procedures to be used by local

 

law enforcement agencies to access mental health jail diversion

 

services are strongly encouraged.

 

     Sec. 414. Medicaid substance abuse treatment services shall be

 

managed by selected PIHPs pursuant to the centers for Medicare and

 

Medicaid services' approval of Michigan's 1915(b) waiver request to

 

implement a managed care plan for specialized substance abuse

 

services. The selected PIHPs shall receive a capitated payment on a

 

per eligible per month basis to assure provision of medically

 


necessary substance abuse services to all beneficiaries who require

 

those services. The selected PIHPs shall be responsible for the

 

reimbursement of claims for specialized substance abuse services.

 

The PIHPs that are not coordinating agencies may continue to

 

contract with a coordinating agency. Any alternative arrangement

 

must be based on client service needs and have prior approval from

 

the department.

 

     Sec. 418. On or before the tenth of each month, the department

 

shall report to the senate and house appropriations subcommittees

 

on community health, the senate and house fiscal agencies, and the

 

state budget director on the amount of funding paid to PIHPs to

 

support the Medicaid managed mental health care program in the

 

preceding month. The information shall include the total paid to

 

each PIHP, per capita rate paid for each eligibility group for each

 

PIHP, and number of cases in each eligibility group for each PIHP,

 

and year-to-date summary of eligibles and expenditures for the

 

Medicaid managed mental health care program.

 

     Sec. 424. Each PIHP that contracts with the department to

 

provide services to the Medicaid population shall adhere to the

 

following timely claims processing and payment procedure for claims

 

submitted by health professionals and facilities:

 

     (a) A "clean claim" as described in section 111i of the social

 

welfare act, 1939 PA 280, MCL 400.111i, shall be paid within 45

 

days after receipt of the claim by the PIHP. A clean claim that is

 

not paid within this time frame shall bear simple interest at a

 

rate of 12% per annum.

 

     (b) A PIHP must state in writing to the health professional or

 


facility any defect in the claim within 30 days after receipt of

 

the claim.

 

     (c) A health professional and a health facility have 30 days

 

after receipt of a notice that a claim or a portion of a claim is

 

defective within which to correct the defect. The PIHP shall pay

 

the claim within 30 days after the defect is corrected.

 

     Sec. 428. Each PIHP shall provide, from internal resources,

 

local funds to be used as a bona fide part of the state match

 

required under the Medicaid program in order to increase capitation

 

rates for PIHPs. These funds shall not include either state funds

 

received by a CMHSP for services provided to non-Medicaid

 

recipients or the state matching portion of the Medicaid capitation

 

payments made to a PIHP.

 

     Sec. 435. A county required under the provisions of the mental

 

health code, 1974 PA 258, MCL 330.1001 to 330.2106, to provide

 

matching funds to a CMHSP for mental health services rendered to

 

residents in its jurisdiction shall pay the matching funds in equal

 

installments on not less than a quarterly basis throughout the

 

fiscal year, with the first payment being made by October 1 of the

 

current fiscal year.

 

     Sec. 456. (1) CMHSPs and PIHPs shall honor consumer choice to

 

the fullest extent possible when providing services and support

 

programs for individuals with mental illness, developmental

 

disabilities, or substance abuse issues. Consumer choices shall

 

include skill-building assistance, rehabilitative and habilitative

 

services, supported and integrated employment services program

 

settings, and other work preparatory services provided in the

 


community or by accredited community-based rehabilitation

 

organizations. CMHSPs and PIHPs shall not arbitrarily eliminate or

 

restrict any choices from the array of services and program

 

settings available to consumers without reasonable justification

 

that those services are not in the consumer's best interest.

 

     (2) CMHSPs and PIHPs shall take all necessary steps to ensure

 

that individuals with mental illness, developmental disabilities,

 

or substance abuse issues be placed in the least restrictive

 

setting in the quickest amount of time possible if it is the

 

individual's choice.

 

     Sec. 458. By April 15 of the current fiscal year, the

 

department shall provide an updated plan for implementing

 

recommendations of the Michigan Mental Health Commission made in

 

the Commission’s report dated October 15, 2004 to the house and

 

senate appropriations subcommittees on community health, the house

 

and senate fiscal agencies, and the state budget director.

 

     Sec. 463. The department shall use standard program evaluation

 

measures to assess the overall effectiveness of programs provided

 

through coordinating agencies and service providers in reducing and

 

preventing the incidence of substance abuse. The measures

 

established by the department shall be modeled after the program

 

outcome measures and best practice guidelines for the treatment of

 

substance abuse as proposed by the federal substance abuse and

 

mental health services administration.

 

     Sec. 468. To foster a more efficient administration of and to

 

integrate care in publicly funded mental health and substance abuse

 

services, the department shall maintain criteria for the

 


incorporation of a city, county, or regional substance abuse

 

coordinating agency into a local community mental health authority

 

that will encourage those city, county, or regional coordinating

 

agencies to incorporate as local community mental health

 

authorities. If necessary, the department may make accommodations

 

or adjustments in formula distribution to address administrative

 

costs related to the maintenance of the criteria under this section

 

and to the incorporation of the additional coordinating agencies

 

into local community mental health authorities provided that all of

 

the following are satisfied:

 

     (a) The department provides funding for the administrative

 

costs incurred by coordinating agencies incorporating into

 

community mental health authorities. The department shall not

 

provide more than $75,000.00 to any coordinating agency for

 

administrative costs.

 

     (b) The accommodations or adjustments do not favor

 

coordinating agencies who voluntarily elect to integrate with local

 

community mental health authorities.

 

     (c) The accommodations or adjustments do not negatively affect

 

other coordinating agencies.

 

     Sec. 470. (1) For those substance abuse coordinating agencies

 

that have voluntarily incorporated into community mental health

 

authorities and accepted funding from the department for

 

administrative costs incurred pursuant to section 468, the

 

department shall establish written expectations for those CMHSPs,

 

PIHPs, and substance abuse coordinating agencies and counties with

 

respect to the integration of mental health and substance abuse

 


services. At a minimum, the written expectations shall provide for

 

the integration of those services as follows:

 

     (a) Coordination and consolidation of administrative functions

 

and redirection of efficiencies into service enhancements.

 

     (b) Consolidation of points of 24-hour access for mental

 

health and substance abuse services in every community.

 

     (c) Alignment of coordinating agencies and PIHPs boundaries to

 

maximize opportunities for collaboration and integration of

 

administrative functions and clinical activities.

 

     (2) By May 1 of the current fiscal year, the department shall

 

report to the house and senate appropriations subcommittees on

 

community health, the house and senate fiscal agencies, and the

 

state budget office on the impact and effectiveness of this section

 

and the status of the integration of mental health and substance

 

abuse services.

 

     Sec. 474. The department shall ensure that each contract with

 

a CMHSP or PIHP requires the CMHSP or PIHP to provide each

 

recipient and his or her family with information regarding the

 

different types of guardianship and the alternatives to

 

guardianship. A CMHSP or PIHP shall not, in any manner, attempt to

 

reduce or restrict the ability of a recipient or his or her family

 

from seeking to obtain any form of legal guardianship without just

 

cause.

 

     Sec. 480. The department shall provide to the senate and house

 

appropriations subcommittees on community health and the senate and

 

house fiscal agencies by March 30 of the current fiscal year a

 

report on the number and reimbursement cost of atypical

 


antipsychotic prescriptions by each PIHP for Medicaid

 

beneficiaries.

 

     Sec. 489. The department shall work with the Michigan

 

association of community mental health boards and individual CMHSPs

 

in an effort to mitigate necessary reductions to the community

 

mental health non-Medicaid services line by seeking alternative

 

funding sources.

 

STATE PSYCHIATRIC HOSPITALS, CENTERS FOR PERSONS WITH DEVELOPMENTAL

 

DISABILITIES, AND FORENSIC AND PRISON MENTAL HEALTH SERVICES

 

     Sec. 601. (1) In funding of staff in the financial support

 

division, reimbursement, and billing and collection sections,

 

priority shall be given to obtaining third-party payments for

 

services. Collection from individual recipients of services and

 

their families shall be handled in a sensitive and nonharassing

 

manner.

 

     (2) The department shall continue a revenue recapture project

 

to generate additional revenues from third parties related to cases

 

that have been closed or are inactive. Revenues collected through

 

project efforts shall be used for departmental costs and

 

contractual fees associated with these retroactive collections and

 

to improve ongoing departmental reimbursement management functions.

 

     Sec. 602. Unexpended and unencumbered amounts and accompanying

 

expenditure authorizations up to $1,000,000.00 remaining on

 

September 30 of the current fiscal year from the amounts

 

appropriated in part 1 for gifts and bequests for patient living

 

and treatment environments shall be carried forward for 1 fiscal

 

year. The purpose of gifts and bequests for patient living and

 


treatment environments is to use additional private funds to

 

provide specific enhancements for individuals residing at state-

 

operated facilities. Use of the gifts and bequests shall be

 

consistent with the stipulation of the donor. The expected

 

completion date for the use of gifts and bequests donations is

 

within 3 years unless otherwise stipulated by the donor.

 

     Sec. 603. The funds appropriated in part 1 for forensic mental

 

health services provided to the department of corrections are in

 

accordance with the interdepartmental plan developed in cooperation

 

with the department of corrections. The department is authorized to

 

receive and expend funds from the department of corrections in

 

addition to the appropriations in part 1 to fulfill the obligations

 

outlined in the interdepartmental agreements.

 

     Sec. 604. (1) The CMHSPs or PIHPs shall provide annual reports

 

to the department on the following information:

 

     (a) The number of days of care purchased from state hospitals

 

and centers.

 

     (b) The number of days of care purchased from private

 

hospitals in lieu of purchasing days of care from state hospitals

 

and centers.

 

     (c) The number and type of alternative placements to state

 

hospitals and centers other than private hospitals.

 

     (d) Waiting lists for placements in state hospitals and

 

centers.

 

     (2) The department shall annually report the information in

 

subsection (1) to the house and senate appropriations subcommittees

 

on community health, the house and senate fiscal agencies, and the

 


state budget director.

 

     Sec. 605. (1) The department shall not implement any closures

 

or consolidations of state hospitals, centers, or agencies until

 

CMHSPs or PIHPs have programs and services in place for those

 

persons currently in those facilities and a plan for service

 

provision for those persons who would have been admitted to those

 

facilities.

 

     (2) All closures or consolidations are dependent upon adequate

 

department-approved CMHSP and PIHP plans that include a discharge

 

and aftercare plan for each person currently in the facility. A

 

discharge and aftercare plan shall address the person's housing

 

needs. A homeless shelter or similar temporary shelter arrangements

 

are inadequate to meet the person's housing needs.

 

     (3) Four months after the certification of closure required in

 

section 19(6) of the state employees' retirement act, 1943 PA 240,

 

MCL 38.19, the department shall provide a closure plan to the house

 

and senate appropriations subcommittees on community health and the

 

state budget director.

 

     (4) Upon the closure of state-run operations and after

 

transitional costs have been paid, the remaining balances of funds

 

appropriated for that operation shall be transferred to CMHSPs or

 

PIHPs responsible for providing services for persons previously

 

served by the operations.

 

     Sec. 606. The department may collect revenue for patient

 

reimbursement from first- and third-party payers, including

 

Medicaid and local county CMHSP payers, to cover the cost of

 

placement in state hospitals and centers. The department is

 


authorized to adjust financing sources for patient reimbursement

 

based on actual revenues earned. If the revenue collected exceeds

 

current year expenditures, the revenue may be carried forward with

 

approval of the state budget director. The revenue carried forward

 

shall be used as a first source of funds in the subsequent year.

 

     Sec. 609. The department shall continue to ban the use of all

 

tobacco products in and on the grounds of state psychiatric

 

facilities. As used in this section, "tobacco product" means a

 

product that contains tobacco and is intended for human

 

consumption, including, but not limited to, cigarettes,

 

noncigarette smoking tobacco, or smokeless tobacco, as those terms

 

are defined in section 2 of the tobacco products tax act, 1993 PA

 

327, MCL 205.422, and cigars.

 

PUBLIC HEALTH ADMINISTRATION

 

     Sec. 650. The department shall communicate the annual public

 

health consumption advisory for sportfish. The department shall, at

 

a minimum, post the advisory on the Internet and make the

 

information in the advisory available to the clients of the women,

 

infants, and children special supplemental nutrition program.

 

     Sec. 651. By April 30 of the current fiscal year, the

 

department shall submit a report to the house and senate fiscal

 

agencies and the state budget director on the activities and

 

efforts of the department to improve the health status of the

 

citizens of this state with regard to the goals and objectives

 

stated in the "Healthy Michigan 2010" report, and the measurable

 

progress made toward those goals and objectives.

 

HEALTH POLICY, REGULATION, AND PROFESSIONS

 


     Sec. 704. The department shall continue to contract with

 

grantees supported through the appropriation in part 1 for the

 

emergency medical services grants and contracts to ensure that a

 

sufficient number of qualified emergency medical services personnel

 

exist to serve rural areas of the state.

 

     Sec. 707. The funds appropriated in part 1 for the nursing

 

scholarship program, established in section 16315 of the public

 

health code, 1978 PA 368, MCL 333.16315, shall be used to increase

 

the number of nurses practicing in Michigan. The board of nursing

 

is encouraged to structure scholarships funded under this bill in a

 

manner that rewards recipients who intend to practice nursing in

 

Michigan.

 

     Sec. 708. Nursing facilities shall report in the quarterly

 

staff report to the department, the total patient care hours

 

provided each month, by state licensure and certification

 

classification, and the percentage of pool staff, by state

 

licensure and certification classification, used each month during

 

the preceding quarter. The department shall make available to the

 

public, the quarterly staff report compiled for all facilities

 

including the total patient care hours and the percentage of pool

 

staff used, by classification.

 

     Sec. 709. The funds appropriated in part 1 for the Michigan

 

essential health care provider program may also provide loan

 

repayment for dentists that fit the criteria established by part 27

 

of the public health code, 1978 PA 368, MCL 333.2701 to 333.2727.

 

     Sec. 710. From the funds appropriated in part 1 for primary

 

care services, an amount not to exceed $2,172,700.00 is

 


appropriated to enhance the service capacity of the federally

 

qualified health centers and other health centers that are similar

 

to federally qualified health centers.

 

     Sec. 711. The department may make available to interested

 

entities customized listings of nonconfidential information in its

 

possession, such as names and addresses of licensees. The

 

department may establish and collect a reasonable charge to provide

 

this service. The revenue received from this service shall be used

 

to offset expenses to provide the service. Any balance of this

 

revenue collected and unexpended at the end of the fiscal year

 

shall revert to the appropriate restricted fund.

 

     Sec. 712. From the funds appropriated in part 1 for primary

 

care services, $250,000.00 shall be allocated to free health

 

clinics operating in the state. The department shall distribute the

 

funds equally to each free health clinic. For the purpose of this

 

appropriation, free health clinics are nonprofit organizations that

 

use volunteer health professionals to provide care to uninsured

 

individuals.

 

     Sec. 713. The department shall continue support of

 

multicultural agencies that provide primary care services from the

 

funds appropriated in part 1.

 

     Sec. 714. The department shall report by April 1 of the

 

current fiscal year to the legislature on the timeliness of nursing

 

facility complaint investigations and the number of allegations

 

that are substantiated on an annual basis. The report shall consist

 

of the number of allegations filed by consumers and the number of

 

facility-reported incidents. The department shall make every effort

 


to contact every complainant and the subject of a complaint during

 

an investigation.

 

     Sec. 716. The department shall give priority in investigations

 

of alleged wrongdoing by licensed health care professionals to

 

instances that are alleged to have occurred within 2 years of the

 

initial complaint.

 

     Sec. 722. A medical professional who was newly accepted into

 

the Michigan essential health provider program in fiscal year 2008-

 

2009 is eligible for 4 years of loan repayments.

 

     Sec. 726. (1) The department shall submit a report to the

 

house and senate appropriations subcommittees on community health,

 

the house and senate fiscal agencies, and the state budget

 

director, on an annual basis, that includes all data on the amount

 

collected from medical marihuana program application and renewal

 

fees along with the cost of administering the medical marihuana

 

program under the Michigan medical marihuana act, 2008 IL 1, MCL

 

333.26421 to 333.26430.

 

     (2) If the required fees are shown to be insufficient to

 

offset all expenses of implementing and administering the medical

 

marihuana program, the department shall review and revise the

 

application and renewal fees accordingly to ensure that all

 

expenses of implementing and administering the medical marihuana

 

program are offset as is permitted under section 5 of the Michigan

 

medical marihuana act, 2008 IL 1, MCL 333.26425.

 

INFECTIOUS DISEASE CONTROL

 

     Sec. 801. In the expenditure of funds appropriated in part 1

 

for AIDS programs, the department and its subcontractors shall

 


ensure that high-risk individuals ages 9 through 18 receive

 

priority for prevention, education, and outreach services.

 

     Sec. 803. The department shall continue the AIDS drug

 

assistance program maintaining the prior year eligibility criteria

 

and drug formulary. This section does not prohibit the department

 

from providing assistance for improved AIDS treatment medications.

 

If the appropriation in part 1 or actual revenue is not sufficient

 

to maintain the prior year eligibility criteria and drug formulary,

 

the department may revise the eligibility criteria and drug

 

formulary in a manner that is consistent with federal program

 

guidelines.

 

     Sec. 804. The department, in conjunction with efforts to

 

implement the Michigan prisoner reentry initiative, shall cooperate

 

with the department of corrections to share data and information as

 

they relate to prisoners being released who are HIV positive or

 

positive for the hepatitis C antibody.

 

EPIDEMIOLOGY

 

     Sec. 851. The department shall provide a report annually to

 

the house and senate appropriations subcommittees on community

 

health, the senate and house fiscal agencies, and the state budget

 

director on the expenditures and activities undertaken by the lead

 

abatement program. The report shall include, but is not limited to,

 

a funding allocation schedule, expenditures by category of

 

expenditure and by subcontractor, revenues received, description of

 

program elements, and description of program accomplishments and

 

progress.

 

LOCAL HEALTH ADMINISTRATION AND GRANTS

 


     Sec. 901. The amount appropriated in part 1 for implementation

 

of the 1993 additions of or amendments to sections 9161, 16221,

 

16226, 17014, 17015, and 17515 of the public health code, 1978 PA

 

368, MCL 333.9161, 333.16221, 333.16226, 333.17014, 333.17015, and

 

333.17515, shall reimburse local health departments for costs

 

incurred related to implementation of section 17015(18) of the

 

public health code, 1978 PA 368, MCL 333.17015.

 

     Sec. 902. If a county that has participated in a district

 

health department or an associated arrangement with other local

 

health departments takes action to cease to participate in such an

 

arrangement after October 1 of the current fiscal year, the

 

department shall have the authority to assess a penalty from the

 

local health department's operational accounts in an amount equal

 

to no more than 6.25% of the local health department's local public

 

health operations funding. This penalty shall only be assessed to

 

the local county that requests the dissolution of the health

 

department.

 

     Sec. 904. (1) Funds appropriated in part 1 for local public

 

health operations shall be prospectively allocated to local health

 

departments to support immunizations, infectious disease control,

 

sexually transmitted disease control and prevention, hearing

 

screening, vision services, food protection, public water supply,

 

private groundwater supply, and on-site sewage management. Food

 

protection shall be provided in consultation with the Michigan

 

department of agriculture. Public water supply, private groundwater

 

supply, and on-site sewage management shall be provided in

 

consultation with the Michigan department of natural resources and

 


environment.

 

     (2) Local public health departments shall be held to

 

contractual standards for the services in subsection (1).

 

     (3) Distributions in subsection (1) shall be made only to

 

counties that maintain local spending in the current fiscal year of

 

at least the amount expended in fiscal year 1992-1993 for the

 

services described in subsection (1).

 

     (4) By April 1 of the current fiscal year, the department

 

shall make available a report to the senate and house

 

appropriations subcommittees on community health, the senate and

 

house fiscal agencies, and the state budget director on the planned

 

allocation of the funds appropriated for local public health

 

operations.

 

CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH PROMOTION

 

     Sec. 1006. (1) In spending the funds appropriated in part 1

 

for the smoking prevention program, priority shall be given to

 

prevention and smoking cessation programs for pregnant women, women

 

with young children, and adolescents.

 

     (2) For purposes of complying with 2004 PA 164, $100,000.00 of

 

the funds appropriated in part 1 for the smoking prevention program

 

shall be used for the quit kit program that includes the nicotine

 

patch or nicotine gum.

 

     Sec. 1007. (1) The funds appropriated in part 1 for violence

 

prevention may be used for programs aimed at the prevention of

 

spouse, partner, or child abuse and rape.

 

     (2) In awarding grants from the amounts appropriated in part 1

 

for violence prevention, the department shall give equal

 


consideration to public and private nonprofit applicants.

 

     Sec. 1009. From the funds appropriated in part 1 for the

 

diabetes and kidney program, a portion of the funds may be

 

allocated to the National Kidney Foundation of Michigan for kidney

 

disease prevention programming including early identification and

 

education programs and kidney disease prevention demonstration

 

projects.

 

     Sec. 1019. From the funds appropriated in part 1 for chronic

 

disease prevention, $50,000.00 may be allocated for stroke

 

prevention, education, and outreach. The objectives of the program

 

shall include education to assist persons in identifying risk

 

factors, and education to assist persons in the early

 

identification of the occurrence of a stroke in order to minimize

 

stroke damage.

 

FAMILY, MATERNAL, AND CHILDREN'S HEALTH SERVICES

 

     Sec. 1101. The department shall review the basis for the

 

distribution of funds to local health departments and other public

 

and private agencies for the women, infants, and children food

 

supplement program; family planning; and prenatal care outreach and

 

service delivery support program and indicate the basis upon which

 

any projected underexpenditures by local public and private

 

agencies shall be reallocated to other local agencies that

 

demonstrate need.

 

     Sec. 1104. (1) Before April 1 of the current fiscal year, the

 

department shall submit a report to the house and senate fiscal

 

agencies and the state budget director on planned allocations from

 

the amounts appropriated in part 1 for local MCH services, prenatal

 


care outreach and service delivery support, family planning local

 

agreements, and pregnancy prevention programs. Using applicable

 

federal definitions, the report shall include information on all of

 

the following:

 

     (a) Funding allocations.

 

     (b) Actual number of women, children, and/or adolescents

 

served and amounts expended for each group for the immediately

 

preceding fiscal year.

 

     (c) A breakdown of the expenditure of these funds between

 

urban and rural communities.

 

     (2) The department shall ensure that the distribution of funds

 

through the programs described in subsection (1) takes into account

 

the needs of rural communities.

 

     (3) For the purposes of this section, "rural" means a county,

 

city, village, or township with a population of 30,000 or less,

 

including those entities if located within a metropolitan

 

statistical area.

 

     Sec. 1105. For all family, maternal, and children's health

 

services programs for which an appropriation is made in part 1, the

 

department shall contract with those local agencies best able to

 

serve clients. Factors to be used by the department in evaluating

 

agencies under this section include the ability to serve high-risk

 

population groups; ability to provide access to individuals in need

 

of services in rural communities; ability to serve low-income

 

clients, where applicable; availability of, and access to, service

 

sites; management efficiency; and ability to meet federal

 

standards, when applicable.

 


     Sec. 1106. Each family planning program receiving federal

 

title X family planning funds under 42 USC 300 to 300a-8 shall be

 

in compliance with all performance and quality assurance indicators

 

that the office of family planning within the United States

 

department of health and human services specifies in the family

 

planning annual report. An agency not in compliance with the

 

indicators shall not receive supplemental or reallocated funds.

 

     Sec. 1108. The funds appropriated in part 1 for pregnancy

 

prevention programs shall not be used to provide abortion

 

counseling, referrals, or services.

 

     Sec. 1110. Agencies that currently receive pregnancy

 

prevention funds and either receive or are eligible for other

 

family planning funds shall have the option of receiving all of

 

their family planning funds directly from the department and be

 

designated as delegate agencies.

 

     Sec. 1111. The department shall allocate no less than 88% of

 

the funds appropriated in part 1 for family planning local

 

agreements and the pregnancy prevention program for the direct

 

provision of family planning/pregnancy prevention services.

 

     Sec. 1129. The department shall provide a report annually to

 

the house and senate appropriations subcommittees on community

 

health, the house and senate fiscal agencies, and the state budget

 

director on the number of children with elevated blood lead levels

 

from information available to the department. The report shall

 

provide the information by county, shall include the level of blood

 

lead reported, and shall indicate the sources of the information.

 

     Sec. 1133. The department shall release infant mortality rate

 


data to all local public health departments 72 hours or more before

 

releasing infant mortality rate data to the public.

 

     Sec. 1135. (1) Provision of the school health education

 

curriculum, such as the Michigan model or another comprehensive

 

school health education curriculum, shall be in accordance with the

 

health education goals established by the Michigan model for

 

comprehensive school health education state steering committee. The

 

state steering committee shall be comprised of a representative

 

from each of the following offices and departments:

 

     (a) The department of education.

 

     (b) The department of community health.

 

     (c) The health administration in the department of community

 

health.

 

     (d) The bureau of mental health and substance abuse services

 

in the department of community health.

 

     (e) The department of human services.

 

     (f) The department of state police.

 

     (2) Upon written or oral request, a pupil not less than 18

 

years of age or a parent or legal guardian of a pupil less than 18

 

years of age, within a reasonable period of time after the request

 

is made, shall be informed of the content of a course in the health

 

education curriculum and may examine textbooks and other classroom

 

materials that are provided to the pupil or materials that are

 

presented to the pupil in the classroom. This subsection does not

 

require a school board to permit pupil or parental examination of

 

test questions and answers, scoring keys, or other examination

 

instruments or data used to administer an academic examination.

 


WOMEN, INFANTS, AND CHILDREN FOOD AND NUTRITION PROGRAM

 

     Sec. 1151. The department may work with local participating

 

agencies to define local annual contributions for the farmer's

 

market nutrition program, project FRESH, to enable the department

 

to request federal matching funds based on local commitment of

 

funds.

 

     Sec. 1153. The department shall ensure that individuals

 

residing in rural communities have sufficient access to the

 

services offered through the WIC program.

 

CHILDREN'S SPECIAL HEALTH CARE SERVICES

 

     Sec. 1201. Funds appropriated in part 1 for medical care and

 

treatment of children with special health care needs shall be paid

 

according to reimbursement policies determined and published by the

 

Michigan medical services program.

 

     Sec. 1202. The department may do 1 or more of the following:

 

     (a) Provide special formula for eligible clients with

 

specified metabolic and allergic disorders.

 

     (b) Provide medical care and treatment to eligible patients

 

with cystic fibrosis who are 21 years of age or older.

 

     (c) Provide medical care and treatment to eligible patients

 

with hereditary coagulation defects, commonly known as hemophilia,

 

who are 21 years of age or older.

 

     Sec. 1203. All children who are determined medically eligible

 

for the children's special health care services program shall be

 

referred to the appropriate locally-based services program in their

 

community.

 

     Sec. 1204. Children who are determined medically eligible for

 


and enroll in the children's special health care services program

 

and who also have Medicaid will have the option to enroll in a

 

Medicaid health plan and have their care co-managed by the

 

children's special health care services program.

 

CRIME VICTIM SERVICES COMMISSION

 

     Sec. 1302. From the funds appropriated in part 1 for justice

 

assistance grants, up to $200,000.00 shall be allocated for

 

expansion of forensic nurse examiner programs to facilitate

 

training for improved evidence collection for the prosecution of

 

sexual assault. The funds shall be used for program coordination

 

and training.

 

OFFICE OF SERVICES TO THE AGING

 

     Sec. 1401. The appropriation in part 1 to the office of

 

services to the aging for community services and nutrition services

 

shall be restricted to eligible individuals at least 60 years of

 

age who fail to qualify for home care services under title XVIII,

 

XIX, or XX.

 

     Sec. 1403. (1) The office of services to the aging shall

 

require each region to report to the office of services to the

 

aging and to the legislature home-delivered meals waiting lists

 

based upon standard criteria. Determining criteria shall include

 

all of the following:

 

     (a) The recipient's degree of frailty.

 

     (b) The recipient's inability to prepare his or her own meals

 

safely.

 

     (c) Whether the recipient has another care provider available.

 

     (d) Any other qualifications normally necessary for the

 


recipient to receive home-delivered meals.

 

     (2) Data required in subsection (1) shall be recorded only for

 

individuals who have applied for participation in the home-

 

delivered meals program and who are initially determined as likely

 

to be eligible for home-delivered meals.

 

     Sec. 1404. The area agencies and local providers may receive

 

and expend fees for the provision of day care, care management,

 

respite care, and certain eligible home- and community-based

 

services. The fees shall be based on a sliding scale, taking client

 

income into consideration. The fees shall be used to expand

 

services.

 

     Sec. 1406. The appropriation of $4,468,700.00 of merit award

 

trust funds to the office of services to the aging for the respite

 

care program shall be allocated in accordance with a long-term care

 

plan developed by the long-term care working group established in

 

section 1657 of 1998 PA 336 upon implementation of the plan. The

 

use of the funds shall be for direct respite care or adult respite

 

care center services. Not more than 9% of the amount allocated

 

under this section shall be expended for administration and

 

administrative purposes.

 

     Sec. 1413. Local counties may request to change membership in

 

the area agencies on aging if the change is to an area agency on

 

aging that is contiguous to that county pursuant to office of

 

services to the aging policies and procedures for area agency on

 

aging designation. The office of services to the aging shall adjust

 

allocations to area agencies on aging to account for any changes in

 

county membership. The office of services to the aging shall ensure

 


annually that county boards of commissioners are aware that county

 

membership in area agencies on aging can be changed subject to

 

office of services to the aging policies and procedures for area

 

agency on aging designation.

 

     Sec. 1417. The department shall provide to the senate and

 

house appropriations subcommittees on community health, senate and

 

house fiscal agencies, and state budget director a report by March

 

30 of the current fiscal year that contains all of the following:

 

     (a) The total allocation of state resources made to each area

 

agency on aging by individual program and administration.

 

     (b) Detail expenditure by each area agency on aging by

 

individual program and administration including both state-funded

 

resources and locally funded resources.

 

     Sec. 1418. From the funds appropriated in part 1 for nutrition

 

services, the department shall maximize funding for home-delivered

 

meals to the extent allowable under federal law and regulation.

 

MEDICAL SERVICES

 

     Sec. 1601. The cost of remedial services incurred by residents

 

of licensed adult foster care homes and licensed homes for the aged

 

shall be used in determining financial eligibility for the

 

medically needy. Remedial services include basic self-care and

 

rehabilitation training for a resident.

 

     Sec. 1602. Medical services shall be provided to elderly and

 

disabled persons with incomes less than or equal to 100% of the

 

official poverty level, pursuant to the state's option to elect

 

such coverage set out at section 1902(a)(10)(A)(ii) and (m) of title

 

XIX, 42 USC 1396a.

 


     Sec. 1604. (1) A Medicaid recipient shall remain eligible and

 

a qualifying applicant shall be determined eligible for medical

 

assistance during a period of incarceration or detention. Medicaid

 

coverage is limited during such a period to off-site inpatient

 

hospitalization only.

 

     (2) A Medicaid recipient is considered incarcerated or

 

detained until released on bail, released as not guilty, released

 

on parole, released on probation, released on pardon, released upon

 

completing a sentence, or released under home detention or tether.

 

     Sec. 1605. (1) The protected income level for Medicaid

 

coverage determined pursuant to section 106(1)(b)(iii) of the social

 

welfare act, 1939 PA 280, MCL 400.106, shall be 100% of the related

 

public assistance standard.

 

     (2) The department shall notify the senate and house

 

appropriations subcommittees on community health and the state

 

budget director of any proposed revisions to the protected income

 

level for Medicaid coverage related to the public assistance

 

standard 90 days prior to implementation.

 

     Sec. 1606. For the purpose of guardian and conservator

 

charges, the department of community health may deduct up to $60.00

 

per month as an allowable expense against a recipient's income when

 

determining medical services eligibility and patient pay amounts.

 

     Sec. 1607. (1) An applicant for Medicaid, whose qualifying

 

condition is pregnancy, shall immediately be presumed to be

 

eligible for Medicaid coverage unless the preponderance of evidence

 

in her application indicates otherwise. The applicant who is

 

qualified as described in this subsection shall be allowed to

 


select or remain with the Medicaid participating obstetrician of

 

her choice.

 

     (2) An applicant qualified as described in subsection (1)

 

shall be given a letter of authorization to receive Medicaid

 

covered services related to her pregnancy. All qualifying

 

applicants shall be entitled to receive all medically necessary

 

obstetrical and prenatal care without preauthorization from a

 

health plan. All claims submitted for payment for obstetrical and

 

prenatal care shall be paid at the Medicaid fee-for-service rate in

 

the event a contract does not exist between the Medicaid

 

participating obstetrical or prenatal care provider and the managed

 

care plan. The applicant shall receive a listing of Medicaid

 

physicians and managed care plans in the immediate vicinity of the

 

applicant's residence.

 

     (3) In the event that an applicant, presumed to be eligible

 

pursuant to subsection (1), is subsequently found to be ineligible,

 

a Medicaid physician or managed care plan that has been providing

 

pregnancy services to an applicant under this section is entitled

 

to reimbursement for those services until such time as they are

 

notified by the department that the applicant was found to be

 

ineligible for Medicaid.

 

     (4) If the preponderance of evidence in an application

 

indicates that the applicant is not eligible for Medicaid, the

 

department shall refer that applicant to the nearest public health

 

clinic or similar entity as a potential source for receiving

 

pregnancy-related services.

 

     (5) The department shall develop an enrollment process for

 


pregnant women covered under this section that facilitates the

 

selection of a managed care plan at the time of application.

 

     (6) The department shall mandate enrollment of women, whose

 

qualifying condition is pregnancy, into Medicaid managed care

 

plans.

 

     Sec. 1610. The department shall provide an administrative

 

procedure for the review of cost report grievances by medical

 

services providers with regard to reimbursement under the medical

 

services program. Settlements of properly submitted cost reports

 

shall be paid not later than 9 months from receipt of the final

 

report.

 

     Sec. 1611. (1) For care provided to medical services

 

recipients with other third-party sources of payment, medical

 

services reimbursement shall not exceed, in combination with such

 

other resources, including Medicare, those amounts established for

 

medical services-only patients. The medical services payment rate

 

shall be accepted as payment in full. Other than an approved

 

medical services co-payment, no portion of a provider's charge

 

shall be billed to the recipient or any person acting on behalf of

 

the recipient. Nothing in this section shall be considered to

 

affect the level of payment from a third-party source other than

 

the medical services program. The department shall require a

 

nonenrolled provider to accept medical services payments as payment

 

in full.

 

     (2) Notwithstanding subsection (1), medical services

 

reimbursement for hospital services provided to dual

 

Medicare/medical services recipients with Medicare part B coverage

 


only shall equal, when combined with payments for Medicare and

 

other third-party resources, if any, those amounts established for

 

medical services-only patients, including capital payments.

 

     Sec. 1620. (1) For fee-for-service recipients who do not

 

reside in nursing homes, the pharmaceutical dispensing fee shall be

 

$2.50 or the pharmacy's usual or customary cash charge, whichever

 

is less. For nursing home residents, the pharmaceutical dispensing

 

fee shall be $2.75 or the pharmacy's usual or customary cash

 

charge, whichever is less.

 

     (2) The department shall require a prescription co-payment for

 

Medicaid recipients of $1.00 for a generic drug and $3.00 for a

 

brand-name drug, except as prohibited by federal or state law or

 

regulation.

 

     Sec. 1621. The department may implement prospective drug

 

utilization review and disease management systems. The prospective

 

drug utilization review, a pharmacist-approved medication therapy

 

program, and disease management systems authorized by this section

 

shall have physician oversight, shall focus on patient, physician,

 

and pharmacist education, and shall be developed in consultation

 

with the national pharmaceutical council, Michigan state medical

 

society, Michigan osteopathic association, Michigan pharmacists

 

association, Michigan health and hospital association, and Michigan

 

nurses association.

 

     Sec. 1623. (1) The department shall continue the Medicaid

 

policy that allows for the dispensing of a 100-day supply for

 

maintenance drugs.

 

     (2) The department shall notify all HMOs, physicians,

 


pharmacies, and other medical providers that are enrolled in the

 

Medicaid program that Medicaid policy allows for the dispensing of

 

a 100-day supply for maintenance drugs.

 

     (3) The notice in subsection (2) shall also clarify that a

 

pharmacy shall fill a prescription written for maintenance drugs in

 

the quantity specified by the physician, but not more than the

 

maximum allowed under Medicaid, unless subsequent consultation with

 

the prescribing physician indicates otherwise.

 

     Sec. 1627. (1) The department shall use procedures and rebates

 

amounts specified under section 1927 of title XIX, 42 USC 1396r-8,

 

to secure quarterly rebates from pharmaceutical manufacturers for

 

outpatient drugs dispensed to participants in the MIChild program,

 

maternal outpatient medical services program and children's special

 

health care services.

 

     (2) For products distributed by pharmaceutical manufacturers

 

not providing quarterly rebates as listed in subsection (1), the

 

department may require preauthorization.

 

     Sec. 1629. The department shall utilize maximum allowable cost

 

pricing for generic drugs that is based on wholesaler pricing to

 

providers that is available from at least 2 wholesalers who deliver

 

in the state of Michigan.

 

     Sec. 1631. Except as otherwise prohibited by federal or state

 

law or regulations, the department shall require Medicaid

 

recipients to pay the following co-payments:

 

     (a) Two dollars for a physician office visit.

 

     (b) Three dollars for a hospital emergency room visit.

 

     (c) Fifty dollars for the first day of an inpatient hospital

 


stay.

 

     (d) One dollar for an outpatient hospital visit.

 

     Sec. 1637. (1) All adult Medicaid recipients shall be offered

 

the opportunity to sign a Medicaid personal responsibility

 

agreement.

 

     (2) The personal responsibility agreement shall include at

 

minimum the following provisions:

 

     (a) That the recipient shall not smoke.

 

     (b) That the recipient shall attend all scheduled medical

 

appointments.

 

     (c) That the recipient shall exercise regularly.

 

     (d) That if the recipient has children, those children shall

 

be up to date on their immunizations.

 

     (e) That the recipient shall abstain from abusing controlled

 

substances and narcotics.

 

     Sec. 1641. An institutional provider that is required to

 

submit a cost report under the medical services program shall

 

submit cost reports completed in full within 5 months after the end

 

of its fiscal year.

 

     Sec. 1642. The department shall allow ambulatory surgery

 

centers in this state to fully participate in the Medicaid program.

 

     Sec. 1643. Of the funds appropriated in part 1 for graduate

 

medical education in the hospital services and therapy line-item

 

appropriation, not less than $12,585,400.00 shall be allocated for

 

the psychiatric residency training program that establishes and

 

maintains collaborative relations with the schools of medicine at

 

Michigan State University and Wayne State University if the

 


necessary allowable Medicaid matching funds are provided by the

 

universities.

 

     Sec. 1647. From the funds appropriated in part 1 for medical

 

services, the department shall allocate for graduate medical

 

education not less than the level of rates and payments in effect

 

on April 1, 2005.

 

     Sec. 1648. The department shall maintain and make available an

 

online resource to enable medical providers to obtain enrollment

 

and benefit information of Medicaid recipients. There shall be no

 

charge to providers for the use of the online resource.

 

     Sec. 1649. From the funds appropriated in part 1 for medical

 

services, the department shall continue breast and cervical cancer

 

treatment coverage for women up to 250% of the federal poverty

 

level, who are under age 65, and who are not otherwise covered by

 

insurance. This coverage shall be provided to women who have been

 

screened through the centers for disease control breast and

 

cervical cancer early detection program, and are found to have

 

breast or cervical cancer, pursuant to the breast and cervical

 

cancer prevention and treatment act of 2000, Public Law 106-354.

 

     Sec. 1650. (1) The department may require medical services

 

recipients residing in counties offering managed care options to

 

choose the particular managed care plan in which they wish to be

 

enrolled. Persons not expressing a preference may be assigned to a

 

managed care provider.

 

     (2) Persons to be assigned a managed care provider shall be

 

informed in writing of the criteria for exceptions to capitated

 

managed care enrollment, their right to change HMOs for any reason

 


within the initial 90 days of enrollment, the toll-free telephone

 

number for problems and complaints, and information regarding

 

grievance and appeals rights.

 

     (3) The criteria for medical exceptions to HMO enrollment

 

shall be based on submitted documentation that indicates a

 

recipient has a serious medical condition, and is undergoing active

 

treatment for that condition with a physician who does not

 

participate in 1 of the HMOs. If the person meets the criteria

 

established by this subsection, the department shall grant an

 

exception to mandatory enrollment at least through the current

 

prescribed course of treatment, subject to periodic review of

 

continued eligibility.

 

     Sec. 1651. (1) Medical services patients who are enrolled in

 

HMOs have the choice to elect hospice services or other services

 

for the terminally ill that are offered by the HMOs. If the patient

 

elects hospice services, those services shall be provided in

 

accordance with part 214 of the public health code, 1978 PA 368,

 

MCL 333.21401 to 333.21420.

 

     (2) The department shall not amend the medical services

 

hospice manual in a manner that would allow hospice services to be

 

provided without making available all comprehensive hospice

 

services described in 42 CFR part 418.

 

     Sec. 1653. Implementation and contracting for managed care by

 

the department through HMOs shall be subject to the following

 

conditions:

 

     (a) Continuity of care is assured by allowing enrollees to

 

continue receiving required medically necessary services from their

 


current providers for a period not to exceed 1 year if enrollees

 

meet the managed care medical exception criteria.

 

     (b) The department shall require contracted HMOs to submit

 

data determined necessary for evaluation on a timely basis.

 

     (c) Mandatory enrollment of Medicaid beneficiaries living in

 

counties defined as rural by the federal government, which is any

 

nonurban standard metropolitan statistical area, is allowed if

 

there is only 1 HMO serving the Medicaid population, as long as

 

each Medicaid beneficiary is assured of having a choice of at least

 

2 physicians by the HMO.

 

     (d) Enrollment of recipients of children's special health care

 

services in HMOs shall continue to be voluntary for those enrolled

 

in the children's special health care services program. Children's

 

special health care services recipients shall be informed of the

 

opportunity to enroll in HMOs.

 

     (e) The department shall develop a case adjustment to its rate

 

methodology that considers the costs of persons with HIV/AIDS, end

 

stage renal disease, organ transplants, and other high-cost

 

diseases or conditions and shall implement the case adjustment when

 

it is proven to be actuarially and fiscally sound. Implementation

 

of the case adjustment must be budget neutral.

 

     (f) Prior to contracting with an HMO for managed care services

 

that did not have a contract with the department before October 1,

 

2002, the department shall receive assurances from the office of

 

financial and insurance regulation that the HMO meets the net worth

 

and financial solvency requirements contained in chapter 35 of the

 

insurance code of 1956, 1956 PA 218, MCL 500.3501 to 500.3580.

 


     Sec. 1654. Medicaid HMOs shall provide for reimbursement of

 

HMO covered services delivered other than through the HMO's

 

providers if medically necessary and approved by the HMO,

 

immediately required, and that could not be reasonably obtained

 

through the HMO's providers on a timely basis. Such services shall

 

be considered approved if the HMO does not respond to a request for

 

authorization within 24 hours of the request. Reimbursement shall

 

not exceed the Medicaid fee-for-service payment for those services.

 

     Sec. 1655. (1) The department may require a 12-month lock-in

 

to the HMO selected by the recipient during the initial and

 

subsequent open enrollment periods, but allow for good cause

 

exceptions during the lock-in period.

 

     (2) Medicaid recipients shall be allowed to change HMOs for

 

any reason within the initial 90 days of enrollment.

 

     Sec. 1656. (1) The department shall provide an expedited

 

complaint review procedure for Medicaid eligible persons enrolled

 

in HMOs for situations in which failure to receive any health care

 

service would result in significant harm to the enrollee.

 

     (2) The department shall provide for a toll-free telephone

 

number for Medicaid recipients enrolled in managed care to assist

 

with resolving problems and complaints. If warranted, the

 

department shall immediately disenroll persons from managed care

 

and approve fee-for-service coverage.

 

     Sec. 1657. (1) Reimbursement for medical services to screen

 

and stabilize a Medicaid recipient, including stabilization of a

 

psychiatric crisis, in a hospital emergency room shall not be made

 

contingent on obtaining prior authorization from the recipient's

 


HMO. If the recipient is discharged from the emergency room, the

 

hospital shall notify the recipient's HMO within 24 hours of the

 

diagnosis and treatment received.

 

     (2) If the treating hospital determines that the recipient

 

will require further medical service or hospitalization beyond the

 

point of stabilization, that hospital must receive authorization

 

from the recipient's HMO prior to admitting the recipient.

 

     (3) Subsections (1) and (2) shall not be construed as a

 

requirement to alter an existing agreement between an HMO and their

 

contracting hospitals nor as a requirement that an HMO must

 

reimburse for services that are not considered to be medically

 

necessary.

 

     Sec. 1658. (1) HMOs shall have contracts with hospitals within

 

a reasonable distance from their enrollees. If a hospital does not

 

contract with the HMO in its service area, that hospital shall

 

enter into a hospital access agreement as specified in the Medical

 

Services Administration Bulletin Hospital 01-19.

 

     (2) A hospital access agreement specified in subsection (1)

 

shall be considered an affiliated provider contract pursuant to the

 

requirements contained in chapter 35 of the insurance code of 1956,

 

1956 PA 218, MCL 500.3501 to 500.3580.

 

     Sec. 1659. The following sections of this bill are the only

 

ones that shall apply to the following Medicaid managed care

 

programs, including the comprehensive plan, MIChoice long-term care

 

plan, and the mental health, substance abuse, and developmentally

 

disabled services program: 271, 401, 402, 404, 411, 414, 418, 424,

 

428, 456, 460, 474, 1607, 1650, 1651, 1652, 1653, 1654, 1655, 1656,

 


1657, 1658, 1660, 1661, 1662, 1681, 1684, 1688, 1689, 1690, 1699,

 

1739, 1740, 1752, 1756, 1764, 1772, 1816, 1819, 1820, 1821, and

 

1824.

 

     Sec. 1660. (1) The department shall assure that all Medicaid

 

children have timely access to EPSDT services as required by

 

federal law. Medicaid HMOs shall provide EPSDT services to their

 

child members in accordance with Medicaid EPSDT policy.

 

     (2) The primary responsibility of assuring a child's hearing

 

and vision screening is with the child's primary care provider. The

 

primary care provider shall provide age-appropriate screening or

 

arrange for these tests through referrals to local health

 

departments. Local health departments shall provide preschool

 

hearing and vision screening services and accept referrals for

 

these tests from physicians or from Head Start programs in order to

 

assure all preschool children have appropriate access to hearing

 

and vision screening. Local health departments shall be reimbursed

 

for the cost of providing these tests for Medicaid eligible

 

children by the Medicaid program.

 

     (3) The department shall prohibit HMOs from requiring prior

 

authorization of their contracted providers for any EPSDT screening

 

and diagnosis services.

 

     (4) The department shall require HMOs to be responsible for

 

well child visits as described in Medicaid policy. These

 

responsibilities shall be specified in the information distributed

 

by the HMOs to their members.

 

     (5) The department shall provide, on an annual basis, budget-

 

neutral incentives to Medicaid HMOs and local health departments to

 


improve performance on measures related to the care of children.

 

     Sec. 1661. (1) The department shall assure that all Medicaid

 

eligible children and pregnant women have timely access to MIHP

 

services. Medicaid HMOs shall assure that MIHP screening is

 

available to their pregnant members and that those women found to

 

meet the MIHP high-risk criteria are offered maternal support

 

services. Local health departments shall assure that MIHP screening

 

is available for Medicaid pregnant women and that those women found

 

to meet the MIHP high-risk criteria are offered MIHP services or

 

are referred to a certified MIHP provider.

 

     (2) The department shall require HMOs to be responsible for

 

the coordination of MIHP services as described in Medicaid policy.

 

These responsibilities shall be specified in the information

 

distributed by the HMOs to their members.

 

     (3) The department shall assure the coordination of MIHP

 

services with the WIC program, state-supported substance abuse,

 

smoking prevention, and violence prevention programs, the

 

department of human services, and any other state or local program

 

with a focus on preventing adverse birth outcomes and child abuse

 

and neglect.

 

     (4) The department shall provide, on an annual basis, budget-

 

neutral incentives to Medicaid HMOs and local health departments to

 

improve performance on measures related to the care of pregnant

 

women.

 

     Sec. 1662. (1) The department shall assure that an external

 

quality review of each contracting HMO is performed that results in

 

an analysis and evaluation of aggregated information on quality,

 


timeliness, and access to health care services that the HMO or its

 

contractors furnish to Medicaid beneficiaries.

 

     (2) The department shall require Medicaid HMOs to provide

 

EPSDT utilization data through the encounter data system, and

 

health employer data and information set well child health measures

 

in accordance with the National Committee on Quality Assurance

 

prescribed methodology.

 

     (3) The department shall provide a copy of the analysis of the

 

Medicaid HMO annual audited health employer data and information

 

set reports and the annual external quality review report to the

 

senate and house of representatives appropriations subcommittees on

 

community health, the senate and house fiscal agencies, and the

 

state budget director, within 30 days of the department's receipt

 

of the final reports from the contractors.

 

     (4) The department shall work with the Michigan association of

 

health plans and the Michigan association for local public health

 

to improve service delivery and coordination in the MIHP and EPSDT

 

programs.

 

     (5) The department shall assure that training and technical

 

assistance are available for EPSDT and MIHP for Medicaid health

 

plans, local health departments, and MIHP contractors.

 

     Sec. 1670. (1) The appropriation in part 1 for the MIChild

 

program is to be used to provide comprehensive health care to all

 

children under age 19 who reside in families with income at or

 

below 200% of the federal poverty level, who are uninsured and have

 

not had coverage by other comprehensive health insurance within 6

 

months of making application for MIChild benefits, and who are

 


residents of this state. The department shall develop detailed

 

eligibility criteria through the medical services administration

 

public concurrence process, consistent with the provisions of this

 

bill. Health coverage for children in families between 150% and

 

200% of the federal poverty level shall be provided through a

 

state-based private health care program.

 

     (2) The department may provide up to 1 year of continuous

 

eligibility to children eligible for the MIChild program unless the

 

family fails to pay the monthly premium, a child reaches age 19, or

 

the status of the children's family changes and its members no

 

longer meet the eligibility criteria as specified in the federally

 

approved MIChild state plan.

 

     (3) Children whose category of eligibility changes between the

 

Medicaid and MIChild programs shall be assured of keeping their

 

current health care providers through the current prescribed course

 

of treatment for up to 1 year, subject to periodic reviews by the

 

department if the beneficiary has a serious medical condition and

 

is undergoing active treatment for that condition.

 

     (4) To be eligible for the MIChild program, a child must be

 

residing in a family with an adjusted gross income of less than or

 

equal to 200% of the federal poverty level. The department's

 

verification policy shall be used to determine eligibility.

 

     (5) The department shall enter into a contract to obtain

 

MIChild services from any HMO, dental care corporation, or any

 

other entity that offers to provide the managed health care

 

benefits for MIChild services at the MIChild capitated rate. As

 

used in this subsection:

 


     (a) "Dental care corporation", "health care corporation",

 

"insurer", and "prudent purchaser agreement" mean those terms as

 

defined in section 2 of the prudent purchaser act, 1984 PA 233, MCL

 

550.52.

 

     (b) "Entity" means a health care corporation or insurer

 

operating in accordance with a prudent purchaser agreement.

 

     (6) The department may enter into contracts to obtain certain

 

MIChild services from community mental health service programs.

 

     (7) The department may make payments on behalf of children

 

enrolled in the MIChild program from the line-item appropriation

 

associated with the program as described in the MIChild state plan

 

approved by the United States department of health and human

 

services, or from other medical services.

 

     (8) The department shall assure that an external quality

 

review of each MIChild contractor, as described in subsection (5),

 

is performed, which analyzes and evaluates the aggregated

 

information on quality, timeliness, and access to health care

 

services that the contractor furnished to MIChild beneficiaries.

 

     (9) The department shall develop an automatic enrollment

 

algorithm that is based on quality and performance factors.

 

     Sec. 1671. From the funds appropriated in part 1, the

 

department shall continue a comprehensive approach to the marketing

 

and outreach of the MIChild program. The marketing and outreach

 

required under this section shall be coordinated with current

 

outreach, information dissemination, and marketing efforts and

 

activities conducted by the department.

 

     Sec. 1673. The department may establish premiums for MIChild

 


eligible persons in families with income above 150% of the federal

 

poverty level. The monthly premiums shall not be less than $10.00

 

or exceed $15.00 for a family.

 

     Sec. 1677. The MIChild program shall provide all benefits

 

available under the state employee insurance plan that are

 

delivered through contracted providers and consistent with federal

 

law, including, but not limited to, the following medically

 

necessary services:

 

     (a) Inpatient mental health services, other than substance

 

abuse treatment services, including services furnished in a state-

 

operated mental hospital and residential or other 24-hour

 

therapeutically planned structured services.

 

     (b) Outpatient mental health services, other than substance

 

abuse services, including services furnished in a state-operated

 

mental hospital and community-based services.

 

     (c) Durable medical equipment and prosthetic and orthotic

 

devices.

 

     (d) Dental services as outlined in the approved MIChild state

 

plan.

 

     (e) Substance abuse treatment services that may include

 

inpatient, outpatient, and residential substance abuse treatment

 

services.

 

     (f) Care management services for mental health diagnoses.

 

     (g) Physical therapy, occupational therapy, and services for

 

individuals with speech, hearing, and language disorders.

 

     (h) Emergency ambulance services.

 

     Sec. 1680. Payment increases for enhanced wages and new or

 


enhanced employee benefits provided in previous years through the

 

Medicaid nursing home wage pass-through program shall be continued.

 

     Sec. 1681. From the funds appropriated in part 1 for home- and

 

community-based services, the department and local waiver agents

 

shall encourage the use of family members, friends, and neighbors

 

of home- and community-based services participants, where

 

appropriate, to provide homemaker services, meal preparation,

 

transportation, chore services, and other nonmedical covered

 

services to participants in the Medicaid home- and community-based

 

services program. This section shall not be construed as allowing

 

for the payment of family members, friends, or neighbors for these

 

services unless explicitly provided for in federal or state law.

 

     Sec. 1682. (1) The department shall implement enforcement

 

actions as specified in the nursing facility enforcement provisions

 

of section 1919 of title XIX, 42 USC 1396r.

 

     (2) The department is authorized to provide civil monetary

 

penalty funds to the disability network of Michigan to be

 

distributed to the 15 centers for independent living for the

 

purpose of assisting individuals with disabilities who reside in

 

nursing homes to return to their own homes.

 

     (3) The department is authorized to use civil monetary penalty

 

funds to conduct a survey evaluating consumer satisfaction and the

 

quality of care at nursing homes. Factors can include, but are not

 

limited to, the level of satisfaction of nursing home residents,

 

their families, and employees. The department may use an

 

independent contractor to conduct the survey.

 

     (4) Any unexpended penalty money, at the end of the year,

 


shall carry forward to the following year.

 

     Sec. 1683. The department shall promote activities that

 

preserve the dignity and rights of terminally ill and chronically

 

ill individuals. Priority shall be given to programs, such as

 

hospice, that focus on individual dignity and quality of care

 

provided persons with terminal illness and programs serving persons

 

with chronic illnesses that reduce the rate of suicide through the

 

advancement of the knowledge and use of improved, appropriate pain

 

management for these persons; and initiatives that train health

 

care practitioners and faculty in managing pain, providing

 

palliative care, and suicide prevention.

 

     Sec. 1684. The department shall submit a report by September

 

30 of the current fiscal year to the house and senate

 

appropriations subcommittees on community health, the house and

 

senate fiscal agencies, and the state budget director that will

 

identify by waiver agent, Medicaid home- and community-based

 

services waiver costs by administration, case management, and

 

direct services.

 

     Sec. 1685. All nursing home rates, class I and class III, must

 

have their respective fiscal year rate set 30 days prior to the

 

beginning of their rate year. Rates may take into account the most

 

recent cost report prepared and certified by the preparer, provider

 

corporate owner or representative as being true and accurate, and

 

filed timely, within 5 months of the fiscal year end in accordance

 

with Medicaid policy. If the audited version of the last report is

 

available, it shall be used. Any rate factors based on the filed

 

cost report may be retroactively adjusted upon completion of the

 


audit of that cost report.

 

     Sec. 1688. The department shall not impose a limit on per unit

 

reimbursements to service providers that provide personal care or

 

other services under the Medicaid home- and community-based

 

services waiver program for the elderly and disabled. The

 

department's per day per client reimbursement cap calculated in the

 

aggregate for all services provided under the Medicaid home- and

 

community-based services waiver is not a violation of this section.

 

     Sec. 1689. (1) Priority in enrolling additional persons in the

 

Medicaid home- and community-based services waiver program shall be

 

given to those who are currently residing in nursing homes or who

 

are eligible to be admitted to a nursing home if they are not

 

provided home- and community-based services. The department shall

 

use screening and assessment procedures to assure that no

 

additional Medicaid eligible persons are admitted to nursing homes

 

who would be more appropriately served by the Medicaid home- and

 

community-based services waiver program.

 

     (2) Within 60 days of the end of each fiscal year, the

 

department shall provide a report to the senate and house

 

appropriations subcommittees on community health and the senate and

 

house fiscal agencies that details existing and future allocations

 

for the home- and community-based services waiver program by

 

regions as well as the associated expenditures. The report shall

 

include information regarding the net cost savings from moving

 

individuals from a nursing home to the home- and community-based

 

services waiver program, the number of individuals transitioned

 

from nursing homes to the home- and community-based services waiver

 


program, the number of individuals on waiting lists by region for

 

the program, and the amount of funds transferred during the fiscal

 

year. The report shall also include the number of Medicaid

 

individuals served and the number of days of care for the home- and

 

community-based services waiver program and in nursing homes.

 

     (3) The department shall develop a system to collect and

 

analyze information regarding individuals on the home- and

 

community-based services waiver program waiting list to identify

 

the community supports they receive, including, but not limited to,

 

adult home help, food assistance, and housing assistance services

 

and to determine the extent to which these community supports help

 

individuals remain in their home and avoid entry into a nursing

 

home. The department shall provide a progress report on

 

implementation to the senate and house appropriations subcommittees

 

on community health and the senate and house fiscal agencies by

 

June 1 of the current fiscal year.

 

     (4) The department shall maintain policies, guidelines,

 

procedures, standards, and regulations in order to limit the self-

 

determination option with respect to the home- and community-based

 

services waiver program to those services furnished by approved

 

home-based service providers meeting provider qualifications

 

established in the waiver and approved by the centers for Medicare

 

and Medicaid services.

 

     Sec. 1690. (1) The department shall submit a report to the

 

house and senate appropriations subcommittees on community health,

 

the house and senate fiscal agencies, and the state budget director

 

by April 1 of the current fiscal year, to include all data

 


collected on the quality assurance indicators in the preceding

 

fiscal year for the home- and community-based services waiver

 

program, as well as quality improvement plans and data collected on

 

critical incidents in the waiver program and their resolutions.

 

     (2) The department shall submit a report to the house and

 

senate appropriations subcommittees on community health, the house

 

and senate fiscal agencies, and the state budget director by April

 

1 of the current fiscal year, to include all data collected on the

 

quality assurance indicators in the preceding fiscal year for the

 

adult home help program, as well as quality improvement plans and

 

data collected on critical incidents in the adult home help program

 

and their resolutions.

 

     Sec. 1691. Payment increases provided in previous years to

 

adult home help workers shall be continued.

 

     Sec. 1692. (1) The department is authorized to pursue

 

reimbursement for eligible services provided in Michigan schools

 

from the federal Medicaid program. The department and the state

 

budget director are authorized to negotiate and enter into

 

agreements, together with the department of education, with local

 

and intermediate school districts regarding the sharing of federal

 

Medicaid services funds received for these services. The department

 

is authorized to receive and disburse funds to participating school

 

districts pursuant to such agreements and state and federal law.

 

     (2) From the funds appropriated in part 1 for medical services

 

school-based services payments, the department is authorized to do

 

all of the following:

 

     (a) Finance activities within the medical services

 


administration related to this project.

 

     (b) Reimburse participating school districts pursuant to the

 

fund-sharing ratios negotiated in the state-local agreements

 

authorized in subsection (1).

 

     (c) Offset general fund costs associated with the medical

 

services program.

 

     Sec. 1693. The special Medicaid reimbursement appropriation in

 

part 1 may be increased if the department submits a medical

 

services state plan amendment pertaining to this line item at a

 

level higher than the appropriation. The department is authorized

 

to appropriately adjust financing sources in accordance with the

 

increased appropriation.

 

     Sec. 1694. The department shall distribute $1,122,300.00 to an

 

academic health care system that includes a children's hospital

 

that has a high indigent care volume.

 

     Sec. 1697. (1) As may be allowed by federal law or regulation,

 

the department may use funds provided by a local or intermediate

 

school district, which have been obtained from a qualifying health

 

system, as the state match required for receiving federal Medicaid

 

or children health insurance program funds. Any such funds received

 

shall be used only to support new school-based or school-linked

 

health services.

 

     (2) A qualifying health system is defined as any health care

 

entity licensed to provide health care services in the state of

 

Michigan, that has entered into a contractual relationship with a

 

local or intermediate school district to provide or manage school-

 

based or school-linked health services.

 


     Sec. 1699. (1) The department may make separate payments

 

directly to qualifying hospitals serving a disproportionate share

 

of indigent patients in the amount of $45,000,000.00, and to

 

hospitals providing graduate medical education training programs.

 

If direct payment for GME and DSH is made to qualifying hospitals

 

for services to Medicaid clients, hospitals will not include GME

 

costs or DSH payments in their contracts with HMOs.

 

     (2) The DSH pool shall be distributed using the distribution

 

methodology used in fiscal year 2003-2004.

 

     Sec. 1711. The department shall maintain the 2-tier

 

reimbursement methodology for Medicaid emergency physicians

 

professional services that was in effect on September 30, 2002.

 

     Sec. 1718. The department shall provide each Medicaid adult

 

home help beneficiary or applicant with the right to a fair hearing

 

when the department or its agent reduces, suspends, terminates, or

 

denies adult home help services. If the department takes action to

 

reduce, suspend, terminate, or deny adult home help services, it

 

shall provide the beneficiary or applicant with a written notice

 

that states what action the department proposes to take, the

 

reasons for the intended action, the specific regulations that

 

support the action, and an explanation of the beneficiary's or

 

applicant's right to an evidentiary hearing and the circumstances

 

under which those services will be continued if a hearing is

 

requested.

 

     Sec. 1728. The department shall make available to qualifying

 

Medicaid recipients, not based on Medicare guidelines, freestanding

 

electrical lifting and transferring devices.

 


     Sec. 1731. The department shall continue an asset test to

 

determine Medicaid eligibility for individuals who are parents,

 

caretaker relatives, or individuals between the ages of 18 and 21

 

and who are not required to be covered under federal Medicaid

 

requirements.

 

     Sec. 1734. The department shall seek federal money for

 

demonstration programs that will permit this state to provide

 

financial incentives for positive health behavior practiced by

 

Medicaid recipients, including, but not limited to, consumer-driven

 

strategies that enable Medicaid recipients to choose coverage that

 

meets their individual needs and that authorize monetary or other

 

rewards for demonstrating positive health behavior changes.

 

     Sec. 1739. The department shall continue the contractor

 

performance bonus program for Medicaid health plans. The contractor

 

performance bonus program may include indicators based on the

 

prevalent and chronic conditions affecting the Medicaid population

 

and indicators of preventive health status for adults and children.

 

     Sec. 1740. From the funds appropriated in part 1 for health

 

plan services, the department shall assure that all GME funds

 

continue to be promptly distributed to qualifying hospitals using

 

the methodology developed in consultation with the graduate medical

 

education advisory group during fiscal year 2006-2007.

 

     Sec. 1741. The department shall continue to provide nursing

 

homes the opportunity to receive interim payments upon their

 

request. The department shall make efforts to ensure that the

 

interim payments are as similar to expected cost-settled payments

 

as possible.

 


     Sec. 1752. The department shall provide a Medicaid health plan

 

with any information that may assist the Medicaid health plan in

 

determining whether another party may be responsible, in whole or

 

in part, for the payment of health benefits.

 

     Sec. 1756. The department shall establish and implement a

 

specialized case and care management program to serve the most

 

costly Medicaid beneficiaries who are noncompliant with medical

 

management, including persons with chronic diseases and mental

 

health diagnoses, high prescription drug utilizers, members

 

demonstrating noncompliance with previous medical management, and

 

neonates. The case and care management program shall, at a minimum,

 

provide a performance payment incentive for physicians who manage

 

the recipient's care and health costs in the most effective way.

 

The department may also develop additional contractual arrangements

 

with 1 or more Medicaid HMOs for the provision of specialized case

 

management services. Contracts with Medicaid HMOs may include

 

provisions requiring collection of data related to Medicaid

 

recipient compliance. Measures of patient compliance may include

 

the proportion of clients who fill their prescriptions, the rate of

 

clients who do not show for scheduled medical appointments, and the

 

proportion of clients who use their medication.

 

     Sec. 1764. The department shall annually certify rates paid to

 

Medicaid health plans as being actuarially sound in accordance with

 

federal requirements and shall provide a copy of the rate

 

certification and approval immediately to the house and senate

 

appropriations subcommittees on community health and the house and

 

senate fiscal agencies.

 


     Sec. 1770. In conjunction with the consultation requirements

 

of the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b, and

 

except as otherwise provided in this section, the department shall

 

attempt to make the effective date for a proposed Medicaid policy

 

bulletin or adjustment to the Medicaid provider manual on October

 

1, January 1, April 1, or July 1 after the end of the consultation

 

period. The department may provide an effective date for a proposed

 

Medicaid policy bulletin or adjustment to the Medicaid provider

 

manual other than provided for in this section if necessary to be

 

in compliance with federal or state law, regulations, or rules or

 

with an executive order of the governor.

 

     Sec. 1772. From the funds appropriated in part 1, the

 

department shall continue a program, the primary goal of which is

 

to enroll all children in foster care in Michigan in a Medicaid

 

health maintenance organization.

 

     Sec. 1773. (1) The department shall establish and implement a

 

bid process to identify a single private contractor to provide

 

Medicaid covered nonemergency transportation services in each

 

county with a population over 750,000 individuals.

 

     (2) The department shall reimburse mileage for nonemergency

 

transportation that encourages contractors to participate.

 

     Sec. 1775. The department shall provide a progress report on

 

ongoing efforts to implement long-term managed care initiatives to

 

the senate and house appropriations subcommittees on community

 

health and the senate and house fiscal agencies by June 1 of the

 

current fiscal year.

 

     Sec. 1804. The department, in cooperation with the department

 


of human services, shall work with the federal government's public

 

assistance reporting information system to identify Medicaid

 

recipients who are veterans who may be eligible for federal

 

veterans health care benefits or other benefits.

 

     Sec. 1816. The department shall work with the Michigan

 

association of health plans to develop and implement strategies for

 

the use of information technology services for claims payment,

 

claims status, and related functions.

 

     Sec. 1819. The department shall use Medicaid health plan

 

encounter data in the development and revision of hospital

 

diagnosis related group pricing policy.

 

     Sec. 1820. The department shall recognize accrediting

 

organizations for Medicaid health plans and shall consider

 

accreditation results when reviewing the performance of Medicaid

 

health plans.

 

     Sec. 1821. The department shall attempt to establish

 

appropriate performance standards for Medicaid health plans a year

 

in advance of the application of those standards. The determination

 

of performance shall be based on and include such recognized

 

concepts as 1-year continuous enrollment and HEDIS audited data.

 

     Sec. 1822. The department, the department's contracted

 

Medicaid pharmacy benefit manager, and all Medicaid health plans

 

shall implement coverage for a mental health prescription drug

 

within 30 days of that drug's approval by the department's pharmacy

 

and therapeutics committee.

 

     Sec. 1824. Individuals who live in homes for the aged or adult

 

foster care facilities shall be eligible to apply for enrollment

 


for services from the home- and community-based waiver program.

 

     Sec. 1830. (1) A physician quality assurance assessment

 

program shall be implemented, in accordance with related

 

legislation passed during the 2010-2011 legislative session.  The

 

state retainer amount shall be used to fund Medicaid program

 

expenditures.

 

     (2) If a physician quality assurance assessment program is not

 

implemented or does not generate general fund savings sufficient to

 

fund Medicaid program expenditures in fiscal year 2010-2011, the

 

following shall occur:

 

     (a) Effective October 1, 2010, Medicaid payments for providers

 

described in subsection (b) shall be adjusted to achieve general

 

fund savings equivalent to the amount that would be achieved by a

 

physician quality assurance assessment program.

 

     (b)  Providers subject to the payment rate reduction shall be

 

limited to those providers subject to percentage rate reductions in

 

Executive Order No. 2009-22.