2002 Senate Bill 1101 / Public Act 519

Introduced in the Senate

Feb. 13, 2002

Introduced by Sen. Joel Gougeon (R-34)

The executive recommendation for the FY 2002-2003 Department of Community Health budget. This appropriates $9.086 billion in adjusted gross spending (funded from all sources, including state restricted fund and federal pass-through dollars, minus interdepartmental transfers), compared to $8.596 billion, which was the FY 2001-2002 amount enacted in 2001, excluding any supplemental appropriations or budget-balancing cuts. Of this, $2.563 billion will come from the General Fund (funded by actual state tax revenues), compared to the current year’s $2.653 billion. This budget includes a $370 million base increase for Medicaid, Mental Health/Substance Abuse, Adult Home Help, and Children’s Special Health Care Services. It also adds $95 million for expansion of the EPIC low income senior prescription drug program, and $62.6 million for the new MIFamily program expanding Medicaid to low income families who are above the poverty level, both from federal sources. To balance the budget it relies on a $247 million transfer from a state Medicaid Trust Fund (leaving $280 million in the fund).

Referred to the Committee on Appropriations

March 19, 2002

Substitute offered

To replace the previous version of the bill with a version recommended by the committee which reported it. The substitute adds $315 million above the executive recommendation. $227 million will be distributed amongst 27 different state health care categories that provide Medicaid-reimbursed services to hike reimbursement rates. It includes a $370 million base increase for Medicaid, Mental Health/Substance Abuse, Adult Home Help, and Children’s Special Health Care Services. It also adds $95 million for expansion of the EPIC low income senior prescription drug program, and $62.6 million for the new MIFamily program expanding Medicaid to low income families who are above the poverty level, both from federal sources. The substitute adds an additional $161 million to a proposed $247 million transfer from a state Medicaid Trust Fund, leaving $110 million in the fund. The substitute was amended to require that at least half of the increase in funding to nursing homes be used to boost the pay of nursing home workers, and to require that this money must go to the workers directly, and may not be used for any fees deducted from their paychecks, including union dues. It was also amended to require the Department of Community Health to assist Michigan certain health providers in federally designated health professional shortage areas apply for federal grants.

The substitute passed by voice vote

March 20, 2002

Amendment offered by Sen. Alma Smith (D-18)

To strip out a provision added to the committee substitute which requires that the increased funding provided to nursing homes to boost the pay of workers must go to the workers directly, and may not be used for any fees deducted from their paychecks, including union dues.

The amendment failed 17 to 20 (details)

Amendment offered by Sen. Alma Smith (D-18)

To require nursing homes to document that the increased funding provided to boost the pay of workers actually does so, and cut their reimbursements for certain services provided under Medicaid by 2.5 percent if they do not.

The amendment passed by voice vote

Amendment offered by Sen. Dale Shugars (R-21)

To require groups which do not provide contraceptives get first priority when grants of money appropriated by the state to promote teen abstinence are disbursed.

The amendment passed 23 to 14 (details)

Passed in the Senate 37 to 0 (details)

The Senate version of the FY 2002-2003 Department of Community Health budget. This appropriates $9.402 billion in adjusted gross spending (funded from all sources, including state restricted fund and federal pass-through dollars, minus interdepartmental transfers), compared to $8.596 billion, which was the FY 2001-2002 amount enacted in 2001, excluding any supplemental appropriations or budget-balancing cuts. Of this, $2.563 billion will come from the General Fund (funded by actual state tax revenues), compared to the current year’s $2.653 billion. This budget includes a $370 million base increase for Medicaid, Mental Health/Substance Abuse, Adult Home Help, and Children’s Special Health Care Services. The Senate version adds $161 million to a proposed $247 million withdrawal from a state Medicaid Trust Fund, leaving $110 million in the fund.

Received in the House

March 20, 2002

May 22, 2002

Substitute offered

To replace the Senate-passed version of the bill with a version which increases the gross appropriation by $35 million, increases the General Fund appropriation by less than $1 million, and contains a number of changes in “boilerplate” language requiring or prohibiting various conditions and actions.

The substitute passed by voice vote

Amendment offered by Rep. Scott Hummel (R-86)

To prohibit the use of funds for the MIChild program, which provides health care to the children of lower income working parents, from being used to promote contraceptives to minors without parental consent.

The amendment failed 72 to 23 (details)

Amendment offered by Rep. Sandy Caul (R-99)

To prohibit the Department of Community Health from going forward on a pilot project to explore the use of managed care in the provision of long term health care services unless it secures the consensus of “interested stakeholders”.

The amendment passed by voice vote

Amendment offered by Rep. Mike Pumford (R-100)

To exempt drugs prescribed to children in a special health care services program from the prior authorization requirements of a recently-adopted best practice initiative program intended to save on drug costs.

The amendment passed by voice vote

Amendment offered by Rep. Mickey Mortimer (R-65)

To state that it is the intent of the legislature that any savings realized from the enactment of Senate Bill 926, which cuts from seven years to two years after high school graduation the "window" of eligibility for a $2,500 MEAP test scholarship award, are appropriated to a state "healthy kids dental program," infant mortality prevention programs, and pregnancy prevention programs.

The amendment passed by voice vote

Amendment offered by Rep. Jerry Vander Roest (R-63)

To direct $250,000 to the regional consortium that includes the Battle Creek health system, Oaklawn hospital, and the Albion health alliance to assist them deal in dealing with the additional cases they will have due to the closing of the Clinton Valley Center.

The amendment passed by voice vote

Amendment offered by Rep. Mickey Mortimer (R-65)

To require the Department of Community Health to obtain assurances of the net worth and financial solvency of certain HMOs seeking contracts with the state.

The amendment passed by voice vote

Amendment offered by Rep. Mickey Mortimer (R-65)

To authorize the Department of Community Health to direct additional funding to communities which contribute local revenue to the non-federal share of Medicaid.

The amendment passed by voice vote

Amendment offered by Rep. Mickey Mortimer (R-65)

To authorize the Department of Community Health to direct additional resources to Wayne County as compensation for the loss of airport parking tax revenue that would be reduced by House Bill 4454.

The amendment passed 74 to 4 (details)

Amendment offered by Rep. Mickey Mortimer (R-65)

To clarify certain technical language in the bill related to a recently-adopted best practice initiative program intended to save on drug costs.

The amendment passed by voice vote

Amendment offered by Rep. Mickey Mortimer (R-65)

To state that it is the intent of the legislature that Department of Community Health support projects by community mental health boards to establish regional partnerships, rather than just pilot projects.

The amendment passed by voice vote

Amendment offered by Rep. Mickey Mortimer (R-65)

To correct a drafting error.

The amendment passed by voice vote

Amendment offered by Rep. Mickey Mortimer (R-65)

To re-direct $1 million in the budget to the David S. Holmes sickle cell anemia program and the Barbara Ann Karmanos Cancer Institute/Wayne State University and the Children’s Hospital of Michigan.

The amendment passed by voice vote

Amendment offered by Rep. Charles LaSata (R-79)

To require the Department of Community Health to disburse any additional savings from a recently-adopted best practice initiative program intended to save on drug costs to reimburse physicians and pharmacists for any added costs associated with the program, and require a report from the department on where the rest of the savings from the program are distributed.

The amendment passed by voice vote

Amendment offered by Rep. Keith Stallworth (D-12)

To require that $500,000 now in the budget go to Wayne State University for the training of mental health professionals in child and adolescent mental health.

The amendment passed by voice vote

May 23, 2002

Amendment offered by Rep. Virg Bernero (D-68)

To add $500,000 for pilot at-risk nonspecial education children and adolescent mental health programs in school districts.

The amendment failed by voice vote

Amendment offered by Rep. Virg Bernero (D-68)

To require the Department of Community Health to provide upon request an expedited review and binding determination by an independent clinician of any denial, reduction, or termination of mental health care services.

The amendment passed by voice vote

Amendment offered by Rep. Virg Bernero (D-68)

To require that $250,000 now in the budget go to a law enforcement fund to reimburse local sheriffs and police officers for the transportation of mental health patients.

The amendment failed 52 to 32 (details)

Amendment offered by Rep. Ken Daniels (D-5)

To redirect $200,000 now in the budget to the Mohican homeowners association for fire prevention education programming.

The amendment passed by voice vote

Substitute offered by Rep. Ken Daniels (D-5)

To withdraw the amendment to redirect $200,000 now in the budget to the Mohican homeowners association for fire prevention education programming.

The substitute passed by voice vote

Amendment offered by Rep. Michael Switalski (D-27)

To redirect $50,000 now in the budget to continue a Clinton river watershed study and hydrology analysis.

The amendment failed by voice vote

Amendment offered by Rep. Keith Stallworth (D-12)

To require that of the funds now in the budget for an African-American male health initiative, $500,000 go to the African-American male health initiative program at Henry Ford Health System.

The amendment passed by voice vote

Amendment offered by Rep. Andy Neumann (D-106)

To strip out language added by the Senate to require that certain money appropriated to boost the pay of nursing home workers must go to the workers directly, and not be used for any fees deducted from their paychecks, including union dues.

The amendment failed 24 to 57 (details)

Amendment offered by Rep. Virg Bernero (D-68)

To require the Department of Community Health to find out how to get permission from the federal government to put in place a particular Medicaid spend-down level for nonelderly individuals receiving social security disability income, figure out how much it would cost the state, and report. This would allow certain Medicaid recipients to keep a higher level of assets and still qualify for the program.

The amendment failed by voice vote

Amendment offered by Rep. Virg Bernero (D-68)

To prohibit the Department of Community Health from using the prior authorization requirements of a recently-adopted best practice initiative program intended to save on drug costs to limit or deny a Medicaid patient access to any prescription drugs used to treat mental illness.

The amendment failed by voice vote

Amendment offered by Rep. Keith Stallworth (D-12)

To allow Wayne State University to get a portion of $3,635,100 now allocated to Michigan State University for the psychiatric residency training.

The amendment failed by voice vote

Substitute offered by Rep. Mickey Mortimer (R-65)

To reconsider the vote by which the House did not adopt the amendment to allow Wayne State University to get a portion of $3,635,100 now allocated to Michigan State University for the psychiatric residency training.

The substitute passed by voice vote

Amendment offered by Rep. Keith Stallworth (D-12)

To establish a presumption that any applicant for Medicaid whose qualifying condition is pregnancy is eligible for coverage unless the preponderance of evidence indicates otherwise, and would be allowed to select or remain with the obstetrician of her choice.

The amendment passed by voice vote

Substitute offered by Rep. Mickey Mortimer (R-65)

To reconsider the vote by which the House adopted the amendment to establish a presumption that any applicant for Medicaid whose qualifying condition is pregnancy is eligible for coverage unless the preponderance of evidence indicates otherwise, and would be allowed to select or remain with the obstetrician of her choice.

The substitute passed by voice vote

Amendment offered by Rep. Andy Neumann (D-106)

To add $10 million for long term care innovations grants.

The amendment failed 48 to 43 (details)

Amendment offered by Rep. Clarence Phillips (D-43)

To require that $500,000 of the funds appropriated for adolescent and child health care be allocated to the teen pregnancy prevention program in the city of Pontiac.

The amendment failed 40 to 54 (details)

Amendment offered by Rep. Tom George (R-61)

To require the state to reimburse mental health service providers treating Medicaid patients at a fixed rate based on the actual statewide costs of the services.

The amendment failed by voice vote

Amendment offered by Rep. Mickey Mortimer (R-65)

To require notification to the legislature of any changes made by the Department of Community Health to the MIChoice home and community based services waiver program screening process. This is a program that allows seniors to receive Medicaid-covered services like those provided by nursing homes, but stay in their own home or another residential setting.

The amendment passed by voice vote

Amendment offered by Rep. Keith Stallworth (D-12)

To prohibit the Department of Community Health to submit an annual report to the legislature on hospitalization utilization of Medicaid recipients by disease category.

The amendment passed by voice vote

Amendment offered by Rep. Keith Stallworth (D-12)

To prohibit the Department of Community Health from using the prior authorization requirements of a recently-adopted best practice initiative program intended to save on drug costs unless it reports to the legislature the drugs that are grandfathered in as preferred drugs available without prior authorization, conducts the drug selection meetings in public with public notice, and abides by certain federal Medicaid standards.

The amendment failed by voice vote

Amendment offered by Rep. Mickey Mortimer (R-65)

To require the Department of Community Health to recommend to the governor a consumer advocate for the pharmacy and therapeutics committee, which selects drugs that do or do not require prior authorization under a recently-adopted best practice initiative program intended to save on drug costs.

The amendment passed by voice vote

Amendment offered by Rep. Keith Stallworth (D-12)

To prohibit the Department of Community Health from using the prior authorization requirements of a recently-adopted best practice initiative program intended to save on drug costs unless it reports to the legislature the drugs that are grandfathered in as preferred drugs available without prior authorization, reports on strategies to improve the drug authorization process, conducts the drug selection meetings in public with public notice, and abides by certain federal Medicaid standards.

The amendment passed by voice vote

Amendment offered by Rep. Dale Sheltrown (D-103)

To require that $150,000 now in the budget go to the Sterling area health center.

The amendment passed by voice vote

Amendment offered by Rep. Keith Stallworth (D-12)

To make explicit that sufficient additional resources be directed to Wayne County to compensation for the ENTIRE loss of airport parking tax revenue that would be reduced by House Bill 4454.

The amendment passed by voice vote

Amendment offered by Rep. Mark Schauer (D-62)

To require that $9 million in additional proceeds anticipated from the tobacco lawsuit settlement go to smoking prevention programs.

The amendment failed 46 to 47 (details)

Amendment offered by Rep. Ken Daniels (D-5)

To redirect $200,000 from worker's compensation to the Mohican homeowners association for fire prevention education programming.

The amendment passed by voice vote

Amendment offered by Rep. Andy Neumann (D-106)

To strip out language added by the Senate to require that certain money appropriated to boost the pay of nursing home workers must go to the workers directly, and not be used for any fees deducted from their paychecks, including union dues.

The amendment failed 47 to 44 (details)

Amendment offered by Rep. Nancy Cassis (R-38)

To require that local health departments get no less funding next year than they get this year.

The amendment failed by voice vote

Amendment offered by Rep. Mark Schauer (D-62)

To require that $3,972,200 now allocated to federally qualified health centers and their "lookalikes" go instead to a list of 14 specific community health centers, and that the money remaining for the federally qualified health centers and their "lookalikes" be used for indigent care programs.

The amendment failed 45 to 41 (details)

Amendment offered by Rep. Mark Schauer (D-62)

To require that one member of the pharmacy and therapeutics committee be a consumer. This committee selects drugs that do or do not require prior authorization under a recently-adopted best practice initiative program intended to save on drug costs.

The amendment failed 47 to 50 (details)

Amendment offered by Rep. Virg Bernero (D-68)

To require that $250,000 now in the budget go to a crisis response team pilot project with Clinton-Eaton-Ingham community mental health services. This would be a team of psychiatric and police professionals to respond to mental health crises in the community.

The amendment passed by voice vote

Amendment offered by Rep. Patricia Lockwood (D-51)

To require that local health departments get no less funding next year than they get this year.

The amendment passed 92 to 4 (details)

Substitute offered by Rep. Mickey Mortimer (R-65)

The substitute passed by voice vote

Substitute offered by Rep. Virg Bernero (D-68)

The substitute failed by voice vote

Amendment offered by Rep. Virg Bernero (D-68)

To require that $101,000 now in the budget go to a crisis response team pilot project with Clinton-Eaton-Ingham community mental health services. This would be a team of psychiatric and police professionals to respond to mental health crises in the community.

The amendment passed by voice vote

Passed in the House 93 to 4 (details)

The House version of the FY 2002-2003 Department of Community Health budget. This appropriates $9.438 billion in adjusted gross spending (funded from all sources, including state restricted fund and federal pass-through dollars, minus interdepartmental transfers), compared to $8.596 billion, which was the FY 2001-2002 amount enacted in 2001, excluding any supplemental appropriations or budget-balancing cuts. Of this, $2.563 billion will come from the General Fund (funded by actual state tax revenues), compared to the current year’s $2.653 billion. The House version adds an additional $25.7 million to a proposed withdrawal from a state Medicaid Trust Fund, for a total withdrawal of $433.8 million.

Received in the Senate

May 23, 2002

June 4, 2002

Failed in the Senate 0 to 37 (details)

To concur with a House-passed version of the bill. The vote sends the bill to a House-Senate conference committee to work out the differences.

Received

June 18, 2002

Passed in the Senate 21 to 16 (details)

The House-Senate conference report for the FY 2002-2003 Department of Community Health budget. This appropriates $9.730 billion in adjusted gross spending (funded from all sources, including state restricted fund and federal pass-through dollars, minus interdepartmental transfers), compared to $8.596 billion, which was the FY 2001-2002 amount enacted in 2001. Of this, $2.477 billion will come from the General Fund (funded by actual state tax revenues), compared to the current year’s $2.653 billion. Note: The FY 2001-2002 figures do not include supplemental appropriations, interdepartmental program shifts, funding source shifts, or cuts made by executive order later in the fiscal year, if any. These can be substantial, and will change the appearance of year-to-year comparisons. The conference report adds an additional $15 million to a proposed withdrawal from a state Medicaid Trust Fund, leaving a balance of $52 million in the fund. It increases Medicaid reimbursement rates to hospitals and nursing homes, and appropriates proceeds from a new “Michigan Medicaid Quality Assurance Assessment” (MMQAA) program, which imposes a new fee or tax on providers, then uses the revenue to collect more federal Medicaid matching funds, resulting in a net gain for the health care providers. The conference report cuts various line items, including certain health screening and other programs.

Received in the House

June 18, 2002

June 19, 2002

Passed in the House 55 to 48 (details)

Received in the Senate

June 19, 2002

Signed with line-item veto by Gov. John Engler

July 25, 2002