January 18 , 2008

Governor Matt Blunt delivered his fourth State of the State address this week promising a budget that “reduces taxes; helps thousands of working Missouri families afford their own health insurance; supports law enforcement; and continues to increase the investment in education.”

The Governor is also recommending increases for the new MO HealthNet Program. Increases include: $112.8 million for rate increases for providers; $73.3 for pharmacy benefits; $52.8 million for rate increases for physicians; $26.2 for rate increases for nursing facilities; $22.8 million to establish a  “health care home”; $13 million to provide women’s health services to an additional 82,751 low-income women; $4.8 million to cover 3,700 children; $24.6 million for dental and optical benefits as well as $7 million for dental health care providers. 

Blunt described how the MO HealthNet Program is improving care delivery by empowering participants through personalized care in a health care home. He also noted his budget increases the physician Medicaid reimbursement rate from 55 percent to 65 percent of the Medicare reimbursement rate.

The Governor also promoted his new health care insurance program for working adults-Insure Missouri. In March, the new program will allow more than 54,000 people to gain immediate access to affordable, high quality health care. Those covered will have incomes below the federal poverty line, and their co-payments will be no more than $3 per visit. Blunt noted that, beginning this summer, his budget proposal will help an additional 56,000 Missourians purchase their own personal health insurance.

Skepticism of the Governor’s State of the State and budget recommendations is not just coming from the Democrats, some of the Republicans are worried about the 7 percent spending growth in the budget since general revenue is only expected to grow by 3.4 percent. Blunt plans to fund the gap with the $506 million carried over from last year's budget from unexpected revenue growth and funds from agency budgets that were not used. Comments by the House and Senate Democrats centered on the Governor’s intention to restore coverage for the very same people he cut from Medicaid in 2005, especially in an election year. Senate Democratic Leader Maida Coleman told the press “The comments by Matt Blunt were those of a desperate man who is desperate to be re-elected."

Good News
The Governor’s Budget includes $2.56 million for distribution to local health departments.

Special thanks to Dr. Wayne Cooper and Representative Sater. At your earliest opportunity “thank you” notes need to be sent for their role in keeping the appropriations in the Governor’s Budget.

In addition, we need to thank Jane Drummond, Director of Department of Health for her support. A lot of work will be involved in keeping this appropriation in the Budget.

House Bill 1316
Representative Cynthia Davis introduced and heard HB 1316 on Thursday morning.

This bill declares that parents of an unemancipated child younger than 18 years of age have the right to make all decisions regarding their child's health care and education; however, parents will not be given the authority to require their child to have an abortion.

A parent or guardian who home schools or sends his or her child to a private school will be allowed reimbursement upon providing satisfactory evidence of the schooling costs up to the amount of the county property taxes he or she paid that would have been given to the school district.

Over 20 witnesses testified against the bill. Education groups, health care groups and others were included.

MOALPHA is on record against the bill. Chair Ward Franz will not move the bill forward.

Healthy Food
Representative Sater also had HB 1327 heard before the Family Services Committee.

By January 1, 2009, and subject to appropriations, this bill requires the Department of Health and Senior Services to establish an access to healthy food pilot program.  The program must include a maximum of four sites located in urban low-income areas of the state.  The program will assist small grocers and food retailers in each of the selected sites in obtaining refrigerated produce display cases to increase the availability of fresh fruit and vegetables.

The provisions of the bill will expire six years from the effective date.

New Missouri House Committee Begins Hearings On Blunt’s Insure Missouri Proposal
This past week, Speaker Rod Jetton changed the name of the House Special Committee on Healthcare Facilities to the House Special Committee on Healthcare Transformation. The committee’s chair, Rep. Rob Schaaf, R-St. Joseph, remains the same.

Schaaf has scheduled 23 hearings to discuss Blunt’s Insure Missouri proposal and has made it no secret that he opposes the proposal. The first four hearings were held this week, with the other 19 scheduled Monday through Thursday through the end of February. Testimony was heard this week from the following.

Marga Hoelscher, director of House Appropriations
Brent Kabler, research manager of the Missouri Department of Insurance
Cindy Kadlec, director of the Joint Committee on Administrative Rules
Brian Kincaid, deputy director of the DSS
Deborah Scott, director of the Missouri Department of Social Services

The committee also discussed the federal state plan amendment for Insure Missouri that was recently approved by the Centers for Medicaid & Medicare Services. In addition, the state administrative rules for Insure Missouri were filed this week by the DSS and discussed in great detail by the committee.

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