BUDGET EXTENDER BILL ENACTED BY LEGISLATURE INCLUDES SUBSTANTIAL REDUCTIONS TO VARIOUS HEALTH CARE PROGRAMS; HITS HOSPITALS HARD

As part of the Budget extender passed Monday by the State Legislature to keep the state government operating through June 13, the Legislature included $775 million in cuts to state programs for the full fiscal year (April 1, 2010 through March 31, 2011) that begin to address the $9.2 billion state Budget deficit.

The legislation included significant cuts to various sectors of the health industry, including particularly hospitals, nursing homes and home care. The health care cuts in the bill passed by the Legislature included, among other things:

> Eliminating the 1.7% trend factor for the rest of the fiscal year for hospitals, nursing homes and home care ($99 million savings);

> Modifying the distribution of indigent care reimbursement to hospitals ($72 million savings);

> Eliminating funding for innovations in Graduate Medical Education ($37 million savings)

> Limiting reimbursement for preventable readmissions to hospitals, nursing home rate appeals and drug costs and payments to nursing homes to hold beds vacant ($36 million savings);

> Repealing of various public health programs, including Private and Public Umbilical cord blood banking program, Shaken Baby Syndrome > > > Public Education program and the Reflex Sympathetic Dystrophy Program;

> Discontinuing HCRA funding for the infertility grant program, disease management demonstration program and long term care education and outreach;

> Modifying the Elderly Pharmaceutical Insurance (EPIC) to require prescribers to file an intent to appeal a Part D denial of drugs while permitting up to a 90-day emergency supply pending the appeal; and

Very importantly, savings of $70 million due to passage of legislation supported by MSSNY (see related article) that will require the State Insurance Department to approve health insurance premiums and require health insurers to meet an increased medical loss ratio.

The Governor has indicated that the next proposed Budget extender will contain cuts to mental health and human services program. Further Budget extenders could include other aspects of the Governor’s proposed Budget, including cuts to education and various revenue raisers. Some legislators have indicated their intent to vote against further Budget extenders, prompting fears by some of a government “shutdown” in the absence of enactment of a further Budget extender. However, negotiations between the Governor and the legislative leaders have significantly picked up in intensity hopefully moving us towards enactment of a complete 2010-11 State Budget.

This entry was posted on Monday, June 14th, 2010 at 8:29 am and is filed under NEWS FROM THE NYS LEGISLATURE. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

BUDGET EXTENDER BILL ENACTED BY LEGISLATURE INCLUDES SUBSTANTIAL REDUCTIONS TO VARIOUS HEALTH CARE PROGRAMS; HITS HOSPITALS HARD

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