For more information on these or other legislative issues, contact Fred Anderson at fanderson@mi-osteopathic.org.

Incoming state revenue to fund essential programs, including Medicaid continues to show signs of strain.  According to the Senate Fiscal Agency (SFA) Monthly Revenue Report, the latest numbers show funds are down 9 percent from last year’s already depressed levels. Sales and use taxes were actually up slightly but the over all numbers were down due to decreases in the Michigan Business Tax (MBT) and income tax collections.

The news is not all bad, though. While overall revenue was down again, the decrease was less than was estimated in January.  With the exception of the MBT, state revenue collections are now decreasing less than expected.  MBT collections were down 29.4 percent from last year. Since the MBT is relatively new, forecasters cannot offer historical collection information to help explain March’s significant drop in collections.

Collections are still coming in below where they were in 2009, but the smaller decrease may signal that Michigan’s economy has finally reached bottom.  However a recovery — especially one that may impact the unemployment rate in a significant way — is still very much in the future.

Additionally, monthly forecasts are such a small snapshot that they cannot be relied upon as showing a trend unless subsequent monthly revenue reports show the same result. The key housing sector continues to demonstrate significant problems, even with some recent signs of progress. Adjustable rate mortgages are still to reset, which could easily reverse the recent positive movement in this vital area.

Update on the prohibition on reuse of single-use medical devices
In the March edition of UPDATE Online, we reported that SB 528 and HB 5825 were actively considered by the Legislature.  Those two bills have now been passed and signed into law. SB 528 is now Act 25 of the Public Acts of 2010 and HB 5825 has become Act 26. These two bills remove any previous ambiguity that may have existed that reuse of a single-use medical device is not permitted. SB 528 adds new language to the Public Health Code to clearly prohibit such action by regulated health professions. HB 5825 adds language to the Code of Criminal Procedure that would make such action a Class D felony with the potential for up to 10 years in prison.

In recognition of approved recycling that does occur, the bills would not apply to federally registered reprocessing that would recycle or reprocess a single-use device.

The need for this legislation was uncovered when videotapes of a dermatologist under investigation for insurance fraud in a billing dispute showed that he was reusing sutures. A detailed investigation later uncovered that the offender was reusing a number of single-use devices and that several thousand patients were exposed to life-threatening diseases. The physician in question was convicted of insurance fraud, but reuse of single-use equipment violated no existing laws at that time.

MDCH FY 2011 budget bill passed
As previously reported, the FY 2011 budget bill for the MDCH has passed the Michigan Senate and is now under consideration by the House Appropriations Subcommittee on Community Health. The subcommittee has been conducting extensive hearings about all of MDCH programs.  The MOA joined the Michigan Health and Hospital Association (MHA) and Michigan State Medical Society (MSMS) in sending a statement to the members of the House Subcommittee listing priorities for the three organizations in the FY 2011 bill for MDCH.

Immunity for retired physicians revised
The Michigan House Health Policy Committee has reported to the House floor HB 4829 introduced by Rep. Tom Pearce (R-Rockford) which revises the immunity of retired physicians who provide care pursuant to a volunteer license in clinic that serves those who are medically indigent. In such cases, a physician would have civil action immunity from malpractice. The legislation’s goal is to increase the number of physicians who would volunteer to work in clinics that serve low income persons.

To qualify as a facility that is serving those in need, the patients would have to be those who are receiving Michigan DHS or federal SSI aid or who have household income below 150 percent of the federal poverty  guidelines.  The bill would reduce to 60 percent the percentage of total care provided by the facility to the poor to qualify for this special provision. With the unprecedented pressure on Michigan’s health care system as a result of our current economic crisis this bill would help to provide some relief to those most in need of care.

MOA joined other medical and health care organizations in supporting the bill. Trial lawyers continue to oppose the bill.

Senate passes stem cell bills

A package of bills that would look to regulate the voter-approved stem cell research legislation has passed the Senate. Those supporting the bills argued they were needed to provide guidance for the voter approved amendment, while those opposed suggested that the package of bills disregarded the language of the constitutional amendment. The bills are unlikely to pass the House as Speaker Andy Dillon (D-Redford) indicated they would not be considered because voters had approved the amendment to the Constitution and the bills were contrary to that amendment. The bills included in the Senate passed package were SB 647 – SB 652.

Anderson serves on Michigan Bar legislative panel
Fred Anderson, J.D., MOA Deputy Director represented MOA on the State Bar of Michigan Health Care Law Section Annual Legislative Update program. The panel was headed by Senator Tom George (R-Texas Charter Township) who chairs the Senate Health Policy Committee. Panelists discussed topics ranging from adequate funding of the Medicaid budget to the importance of preserving Michigan’s medical malpractice reforms from weakening by the trial bar. Discussion also included the danger of enacting a physician tax and the need to refine the impact of the MBT on physicians.