For more information on these or other legislative issues, contact Fred Anderson at fanderson@mi-osteopathic.org or call 800.657.1556.

The Michigan House  passed the MDCH budget bill (HB1152) for FY 2011 that contains appropriations for almost all state health care funding, including Medicaid.  Like the Senate version passed previously, the House bill did not contain the governor’s proposed physician tax. In fact no member of either chamber offered for consideration the governor’s plan of imposing the tax.

The House restored many of the cuts made  by the Senate, leaving a large amount of differences between the two chambers’ versions of the bill. The result will likely mean a very contentious conference committee process to iron out the differences between the opposing perspectives regarding SB 1152.

Responding to pleas from MOA and other physicians groups, the House bill did not include the 4 percent cut in non primary care physician reimbursement that was included in the Senate version. While this is good news, the continuing state revenue problems means that it is too early to celebrate this development. The conference committee process to resolve differences between the two chambers regarding the MDCH FY 2011 budget will be very challenging. At this point it does not appear there will be enough revenue to fund all of the programs included in the budget bill.

State Revenue Forecast Meeting – Glimmers of Improvement Seen
The second meeting of the organizations that forecast the amount of state revenue that will be available for the remainder of this fiscal year and next have concluded their deliberations. Figures indicate that this year’s state general revenue for programs including health care will be down another $243.5 M from what was estimated just five months ago. This is obviously not good news. However in the good news category, it now appears that general fund will be up slightly from prior estimates for the 2011 fiscal year. The main reasons for the ongoing revenue shortfalls are that businesses are unfamiliar with the new MBT which caused them to over pay. Those business are now applying for refunds. Individual income tax refunds are also running higher than projected.

Sales and use tax collections which are mostly used to fund K-12 education rose $291.8 M for FY 2010 and are also projected to rise by another $352.4 M in FY2011 according to the agreed upon forecasts. This not only helps education funding but does indicate that some spending has improved as consumers get a bit more confident that a recovery is starting to occur.

There have been some other sparkles of light that we may be nearing the end of our long period of declining economic activity. Unemployment dropped by 1/10 of 1 percent last month which while not much was at least movement in the right direction.  There are also some signs of increased numbers in the MI workforce.  Our combined personal income which actually declined in CY 2009 by 3 percent is projected to actually start growing and is now forecast to increase by a very modest approximately 1.1 percent by the end of 2010. In calendar year 2010, the sense is that it will grow by around 2.7 percent.

Unfortunately, by comparison, the national personal income growth for calendar year 2010 is expected to increase around 3.1 percent and for 2011 it will grow roughly 3.8 percent.  This means that for at least two more years Michigan’s growth will lag the rest of the country by roughly 50 percent.

Still Birth Risks Bill, HB 6091 Clears House Committee
HB 6091, introduced by Rep. Kevin Green (R-Wyoming) has been reported from the House Health Policy Committee which would have an impact on physicians and hospitals.  The bill requires “when medically appropriate and within the standard of care” that the patient must within the twentieth to twenty eight weeks of pregnancy be advised of stillbirth risk.   MDCH working with health care organizations will be tasked with developing the material that will be required to be given to patients.  The written information that would have to be provided to meet the requirements of the bill would include awareness of the impact of “decreased fetal movements and counting fetal kicks.”  Rep. Green and his wife lost a baby due to stillbirth.  Medical liability insurance companies have expressed reservations and opposition to the bill.  While very sympathetic to the terrible loss suffered by the Green family, the MOA at this time has remained opposed to the bill.

License Revocation for Criminal Sexual Conduct
The House Health Policy Committee has cleared a package of bills that require the permanent license revocation of a health care professional convicted of certain criminal sexual conduct crimes. HB 4468 introduced by Rep Rick Jones (R-Grand Ledge), HB 4469 introduced by Rep. Bettie Cook Scott (D-Detroit) and HB 5043 introduced by Rep Lesia Liss (D-Warren) are awaiting action on the House floor.

Hearing Held on Genetic Counseling Licensure Legislation
MOA has joined the MHA, MSMS, March of Dimes, William Beaumont Hospital and other organizations in supporting HB 5684 which calls for the licensure of genetic counselors.  The House Health Policy held an initial hearing on the bill and the bill should move from that committee in the near future.  The bill is sponsored by Rep. Marie Donigan (D-Royal Oak).

State Appropriation of Federal Health Information Exchange (HIE)
With the counsel and assistance of the MOA IT Committee, MOA submitted a strong statement in support of the need for the Legislature to quickly appropriate federal monies allocated to the State for HIE.  Michigan needs to act now to insure the capture of all available federal funds for which our State is eligible.  Joining MOA in concurring statements were the MHA and many sub state HIEs.  MOA has been a strong supporter of the sub sate or local HIEs as they are best positioned to work with local systems and resources to improve patient care delivery.