State Senate Passes MDCH Budget Without Medicaid Expansion

On Thursday, the full Senate passed the Michigan Department of Community Health budget (Senate Bill 198) without Gov. Snyder’s proposal to expand Medicaid health insurance for low-income adults.

The House of Representatives previously passed a version of the budget that did not include the Governor’s plan. However, the House Michigan Competitiveness Committee is currently deliberating on an alternative proposal that would extend Medicaid health insurance to individuals with income up to 133 percent of the poverty level. (See Related Article)

During the budget debate, the Senate adopted three minor amendments to the bill. The bill removed any potential savings gleamed from Medicaid expansion, a placeholder was inserted for human trafficking intervention services, and a workgroup was created to improve mental health services in Benzie and Manistee counties.

The Senate and House budgets will now be sent to a Conference Committee to resolve the differences between the two proposals. To date, legislative leaders have not appointed conferees for the respective conference committees. The Legislature is working to finalize all of the budgets before a self-imposed June 1 deadline.

posted by PAA Online , Friday, May 17, 2013 11:07 AM
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May Revenue Estimating Conference Projects Budget Surplus

On Wednesday, State Budget Director John Nixon and leaders from the Senate and House Fiscal Agencies met to discuss the economic forecast and revenue projections for the current and upcoming fiscal year budgets.

Based on the report, there is an additional $483 million in state revenue for the current fiscal year. This surplus is due to economic growth and investors cashing in stocks over worries of potential tax increases during the federal “fiscal cliff”.

The report also concluded that there will be an additional $219 million in revenue for fiscal year 2014, with approximately $182 million more for the General Fund and $38 million more for the School Aid Fund.

Discussions began almost immediately on whether the additional money should be used to pay down debts, to increase spending, or be placed in the Rainy Day Fund. The Governor indicated he would like to use a large portion of the money for road and bridge projects; however, Democrats have voiced their support for an increase in education spending and tax cuts. Regardless, the revised estimates will be used as the state Legislature works to finalize the fiscal year 2014 budget.

posted by PAA Online , 11:07 AM
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House Committee Holds Hearings on Medicaid Reform

The House Michigan Competitiveness Committee, chaired by Rep. Mike Shirkey (R-Clarklake), held two hearings this week on a Medicaid reform bill (House Bill 4714).

Under the provisions of this legislation, the state would be required to seek a waiver from the federal government to expand coverage for individuals with income up to 133 percent of the poverty level as long as the federal government fully funds the expansion. The bill would also limit Medicaid health care coverage for patients to four years and would institute personal responsibility provisions (i.e. healthy behavior, co-pays, etc.). The four-year time limit would be prospective from the effective date of this legislation.

During Tuesday’s committee hearings, questions and concerns primarily surrounded the bill’s provision that would limit Medicaid coverage to 48-months for nondisabled adults. Specifically, lawmakers questioned the legality of the cap and whether it would unintentionally increase the number of uninsured when the time limit expires. Committee members also questioned how the state would implement and enforce the healthy behavior requirements and address non-disabled adults facing a chronic and terminal illness after the 48-month limit expired.

On Thursday, Michigan Department of Community Health Director Jim Haveman told committee members the Department could work with the overall premise of the bill but there are a few outstanding concerns. Haveman raised the potential concern that the 48-month threshold would encourage recipients to enroll into Medicaid after, and not before, they are diagnosed with a chronic or long-term illness. He also articulated that the bill did not include an account for the state to pay its required contribution beginning in 2017. Additionally, there were further discussions about on whether the cap would deter the federal government from approving the waiver.

Committee Chairman Shirkey stated the committee will resume discussions on this issue next Tuesday. A final vote for the bill has not been scheduled.

posted by PAA Online , 11:06 AM
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House Committee Addresses Adoption Legislation

The House Families, Children and Seniors Committee passed three bills this week seeking to make the adoption process more efficient and transparent.

Under the provisions of House Bills 4646 (H-1), 4647 and 4648, a birth mother would have five days to rescind her choice; allow the court to finalize the adoption process within three months of placement; and ensure that custody of the child would be placed with the adoptive family or the mother, not the putative father, during the adoption proceedings. The bills now head to the full House for consideration.

The committee also discussed a series of bills (House Bills 4659, 4661, and 4662) that would create a Responsible Fathers Registry. The bills would require the Michigan Department of Community Health to develop an online registry, allowing a father to admit paternity of a child who was born outside the confines of marriage. As long as the father registers within 48 hours of the child’s birth, he would be informed of all paternity hearings. The Department expressed support for the legislation; however, they also voiced concerns over potential abuse and fraud with the online registry. Committee Chairman Ken Kurtz (R-Coldwater) stated he will take these concerns under advisement before the committee reconvenes deliberations on the legislation.

posted by PAA Online , 11:05 AM
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Health Insurance Claims Assessment Sunset and Tax Extended

On Wednesday, the Senate Appropriations Committee passed legislation that would extend the sunset provision for the Health Insurance Claims Assessment law to 2018 and maintain the tax at one percent. The current law was originally scheduled to sunset on January 1, 2014.

The legislation passed only after the most controversial provision was removed. Under the provisions of the current law, a one percent tax is placed on a majority of health claims in an effort to generate revenue for the state Medicaid program. However, the tax is failing to generate the $400 million that was originally projected and needed to fully fund Medicaid.

Senate Bill 335, introduced by Sen. Roger Kahn, originally included a three-year rate adjustment in an effort to address the funding shortfall. However, the rate received a considerable amount of opposition from lawmakers, business groups, and other advocates who were concerned about rising health care costs. Once the rate adjustment was removed from the bill, Senate Bill 335 was adopted and sent to the full Senate.

However, lawmakers will need to tap into the Medicaid Trust Fund, reduce Medicaid services or provider payments, or use a portion of the additional state revenue that was announced earlier this week to address the Medicaid funding shortfall. Another option to fill the gap would be the automobile no-fault insurance reform proposal, currently before the full House, which includes a new $25 health care assessment on car insurance policies. A solution will need be found before the budget takes effect on Oct. 1.

posted by PAA Online , 11:05 AM
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House Minority Floor Leader Running for Congress; Floor Leader Election Imminent

House Minority Floor Leader Rudy Hobbs (D-Southfield) officially announced he is running for U.S. Congress in the 14^th District. This seat is currently held by Congressman Gary Peters (D-Bloomfield Township) who is a candidate to replace the retiring Carl Levin in the U.S. Senate.

In an effort to focus on his campaign, Hobbs also announced he is resigning from his position as House Minority Floor Leader, effective May 22. Rep. Sam Singh (D-East Lansing), Rep. Andy Schor (D-Lansing), Rep. Pam Faris (D-Clio), Rep. Sarah Roberts (D-St. Clair Shores), Rep. David Rutledge (D-Ypsilanti) and Rep. David Knezek (D-Dearborn Heights) are just a few of the individuals who are running for this position. It is expected that the House Democratic Caucus will vote on Hobb’s successor next week.

posted by PAA Online , 11:04 AM
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May 10th Survey Results

In the May 10th edition of PAAdvisory, readers if the spending cuts resulting from the federal “sequester” helped the economy, or hurt it?

62 percent believe it has helped the economy while 38 percent believe it has hurt the economy.

posted by PAA Online , 11:02 AM
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PAAdvisory Briefs

State Democrats Will Not Release Road Funding Proposal

In an effort to spur negotiations on a new transportation funding plan, Gov. Snyder reached out to Senate and House Democratic leaders requesting their ideas on how to raise more than $1 billion to fix the roads. To date, Democrats have voiced their opposition to every road funding option floated by Republicans. Senate Minority Leader Gretchen Whitmer and House Minority Leader Tim Greimel both stated they would not release a road funding plan but are willing to continue discussions on the issue.

Former State Rep. Ken Horn Announces Candidacy for State Senate

On Monday, former state Rep. Ken Horn (R-Frankenmuth) announced his candidacy for the 32^nd State Senate seat. The seat is currently held by term-limited Sen. Roger Kahn (R-Saginaw Township). It is anticipated that this race will be hotly contested by Democrats. To date, Garnet Lewis is the only Democrat who has officially entered the race. However, Rep. Stacy Erwin Oakes (D-Saginaw) and Saginaw County Sheriff Bill Federspiel may also seek the Democratic nomination.

State Unemployment Numbers Drop

On Wednesday, the state released its seasonally adjusted unemployment rate. The unemployment rate fell to 8.4 percent in April from 8.5 percent rate in March. Despite economic growth in the state, Michigan’s unemployment rate remains above the April national unemployment rate of 7.5 percent.

Special Election Set for 49^th House District

Gov. Snyder has scheduled a Special Election in the 49^th State House District. The election is set for an August 6 primary and a November 5 election day. As previously reported, this vacancy was created when state Representative Jim Ananich was elected to serve in the 27^th State Senate District. Kyle McCree, a Genesee Regional Chamber of Commerce executive, and Phil Phelps, former chief of staff for Rep. Pam Faris (D-Clio), have announced their intention to run for this seat.

Senator Ananich Given Committee Assignments

On Tuesday, former state Representative Jim Ananich was officially sworn into the State Senate. Additionally, he was appointed as the Minority Vice Chair for the Senate Banking and Financial Institutions Committee and was placed on the Senate Economic Development Committee (replacing Senate Minority Leader Tupac Hunter on both committees). Sen. Ananich will also serve on the Senate Health Policy Committee and the Senate Transportation Committee (replacing Senator Rebekah Warren).

Detroit Mayor Will Not Seek Reelection

On Tuesday, Mayor Bing announced he will not seek a second term as Detroit mayor. However, he is creating an exploratory committee to possibly run for Wayne County Executive. During his press conference, Mayor Bing criticized state officials on whether they were “truly interested in a partnership” to solve Detroit’s financial crisis. Top candidates Wayne County Sheriff Benny Napoleon and former Detroit Medical Center CEO Mike Duggan will face off in the August 6 primary. Other candidates include former State Rep. Lisa Howze, State Reps. Fred Durhal and John Olumba, former Detroit city counsel Krystal Crittendon, and accountant Tom Barrow.

posted by PAA Online , 11:01 AM
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Question of the Week 5/17/13

posted by PAA Online , 9:41 AM
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