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Grads: Here's to your health
Posted on Thursday, May 15, 2008 - 02:24 PM
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Nizar Dowla was not thinking about paying for health insurance when he entered the University of Maryland, College Park.

Now, as a 20-year-old junior considering medical school, Dowla will be able to put off worries of paying for his own insurance for a few more years under a new state law requiring insurers to allow young adults to remain on their parents' health insurance until they are 25.

‘‘To be honest, I wasn't really thinking about this at the beginning of college, but now that I'm a junior entering senior year, you kind of see the light at the end of the tunnel,” said Dowla, who is president of the university's Student Health Advisory Committee.

For some, that light is a freight train full of expenses.

Whether they are considering postgraduate study or entering the work force, tuition, loans and health care costs are major considerations for students about to leave college.

The new law will make things a bit easier, said Dowla, who stands to save $7,500 over the first three years of medical school by remaining on his father's insurance plan.

‘‘While they're getting situated, this is one less thing that students have to worry about,” he said.

Over the past two years, the General Assembly has taken steps to expand health care to the uninsured, from providing subsidies for small business to expanding Medicaid coverage to 100,000 uninsured Marylanders.

Last week, health care advocates held news conferences at Towson University and at College Park highlighting the new law.

Passed in 2007, the Family Coverage Expansion Act began applying to health insurance coverage on Jan. 1, making this semester's students the first wave of college graduates to benefit from the initiative.

‘‘This is the same time that last year if they were graduating from college they would be dumped,” said Vincent DeMarco, president of the Maryland Citizens' Health Initiative.

Before the act passed, state law required insurers to cover dependent children through the end of the year in which they turned 19. Dependent children who were disabled or full-time students were able to retain their coverage until they turned 23.

Advocates do not know how many of the estimated 100,000 people between 19 to 23 are uninsured, said DeMarco, adding that a ‘‘fair” estimate is that the new law will benefit ‘‘tens of thousands.”

‘‘It shows a dedication by our lawmakers to make sure young people are healthy, have health care and have access to preventative measures to make sure they stay healthy,” said Andrew Friedson, student body president at College Park.

‘‘Losing insurance coverage used to be a dangerous rite of passage for thousands of young people graduating from high school or college,” said Del. Heather R. Mizeur, who sponsored the expansion legislation.

The law will protect young people who often have to choose between relying on their parents to pay for an individual plan or ‘‘play Russian roulette” and risk not having health coverage, said Mizeur (D-Dist. 20) of Takoma Park.

‘‘We're giving a certain level of economic security for the entire family,” she said. ‘‘No family is going to be burdened by a catastrophic health incident.”

The bill also allows employers, not insurers, to decide whether to extend health care benefits to domestic partners.

‘‘If an employer wants to provide domestic partner coverage for a family, they get to now,” Mizeur said.

The law is the first of several passed in the past two years to expand health care.

During last fall's special session, despite grappling with a $1.5 billion budget deficit, legislators approved expanding Medicaid to parents of children enrolled in the Maryland Children's Health Program and uninsured adults with incomes at 116 percent of the federal poverty guidelines, or $11,844 a year.

This year, the General Assembly passed legislation to expand children's dental care and to help senior citizens who fall into Medicare's ‘‘doughnut hole” where they are forced to pay the full cost of prescription drugs.

‘‘Across age, economic and geographic - any kind of demographic in Maryland - health care has been improved under the O'Malley administration,” DeMarco said.

Advocates are closely monitoring a showdown between the Bush administration and several states, including Maryland, over Medicaid funding.

The administration is proposing new rules that would reduce what it sees as $13 billion in fraudulent or unnecessary expenditures. Maryland officials say the changes will take tens of millions of dollars from a pregnancy program, rehabilitation and outpatient care and other programs.

‘‘The Bush administration's proposed Medicaid regulations would be disastrous,” DeMarco said. ‘‘It would be terrible for kids on Medicaid and terrible for all of us by putting more people in hospitals for our care. We commend Congress for doing everything it can to overturn these draconian measures.”

In the meantime, advocates are trying to ensure that everyone who can be covered is.

‘‘The next step right now is to make sure everybody who's eligible for these new programs is enrolled,” DeMarco said.

Another bill sponsored by Mizeur that passed the General Assembly this year requires the state to send application packets to low-income taxpayers whose dependents are eligible for the Maryland Medical Assistance Program or the Maryland Children's Health Program.

‘‘All of that being said, we've got a lot of implementation going on right now,” Mizeur said.

‘‘Eventually we will be talking about expanding health care more, but we're not talking about that right now,” DeMarco said.

For now, the talking is being left to participants in a series of 13 town hall meetings that the Maryland Citizens' Health Initiative and Progressive Maryland are holding around the state. Participants are being given information about new health care programs and laws and are being asked for input on ways to expand coverage that will be pushed during the next year's General Assembly.

Amid tough economic times, the state should continue to look at forging public-private partnerships through nonprofit insurers, Mizeur said.

The state, facing a continued budget deficit and an economic downturn, needs to get its finances in order before looking to spend more on health coverage, said House Minority Leader Anthony J. O'Donnell.

‘‘In my opinion, we cannot continue to spend taxpayer dollars that we don't have,” said O'Donnell (R-Dist. 29C) of Lusby. ‘‘Unless we want to throw in the towel and move to a socialized system, I think it's a bad idea.”

In the meantime, others are finding ways to expand coverage.

Howard County plans to enroll 2,000 people beginning in July in a partnership between the county, nonprofit and for-profit health care providers and Howard County General Hospital. The county hopes to ultimately cover up to 20,000 uninsured county residents.

In March, the University Senate at the University of Maryland, College Park approved a policy requiring that new undergraduates show proof of health insurance or purchase university policy.

The state and the university are moving in the right direction, Dowla said.

‘‘We're making sure they're covered on campus, and now, with this new law, they'll also be covered for the first couple of years when they get off campus,” he said.

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Universal health backer awarded $750,000 grant
Posted on Thursday, February 07, 2008 - 02:44 PM

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By M. William Salganik
Sun reporter

February 7, 2008

Maryland Citizens Health Initiative is refueling for the next phase of its campaign for universal health insurance in the state with the announcement yesterday that it is receiving a three-year, $250,000-a-year grant.

The money comes from the Robert Wood Johnson Foundation, a health-focused grant-maker in New Jersey. It is part of a $15 million, 12-state effort called Consumer Voices for Coverage.

"The purpose of this program is to strengthen advocacy efforts in states to expand health coverage," said Lori Grubstein, program officer for the foundation.

Vincent DeMarco, president of the Maryland group, said his organization is currently revising its 2002 "health care for all" plan and will use the grant for "coalition building."

That will mean the hiring of five to 10 organizers, supplementing the current staff of four, to seek support from community, religious and labor groups around the state.

Formed in 1999, the initiative developed its first universal coverage plan in 2002 and persuaded about 2,000 community groups to be supporters. The initiative has been operating on a budget of about $500,000 a year, mostly grants from local and national foundations, DeMarco said.

Parts of the 2002 plan have been enacted. This past winter's legislative special session approved a Medicaid expansion to cover more low-income adults starting in July and set up a program to provide financial help to small employers who haven't been able to offer health coverage to their workers.

For the next several months, DeMarco's organization will work to enroll people newly eligible for Medicaid (those who make up to 116 percent of the federal poverty level, or $24,492 for a family of four). Although about 250,000 of the state's 750,000 uninsured will be eligible for Medicaid coverage, the state expects only about half of them to sign up, DeMarco said.

Another piece of the initiative's 2002 plan, the so-called Wal-Mart bill, requiring large employers to offer adequate coverage or pay a fee to the state, was enacted in 2006 only to be blocked by a federal court.

With the Medicaid expansion in place, DeMarco said the plan would likely focus on how to reach 500,000 or so uninsured Marylanders who are not poor enough to qualify for Medicaid but can't afford health insurance, which costs about $10,000 a year for family coverage. He said the revised plan should be ready by May.



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Md. Takes Initial Step to Shrink Ranks Of Uninsured
Posted on Sunday, November 25, 2007 - 08:36 PM

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Lisa Rein
Washington Post Staff Writer

Friday, November 23, 2007; Page B01

The new law, approved by the legislature in the final hours of a special session that concluded early Monday, had long been sought by health advocates and House leaders.

It is not as comprehensive as advocates would have liked. It falls short of an effort to extend Medicaid coverage to twice as many people that died last winter, and it will cover a fraction of the 14 percent of uninsured Marylanders. The quality, efficiency and cost of providing medical care in the state, which contribute to making insurance unaffordable for many, will go unaddressed.

But as the first major change to the system in years, the $675 million program -- funded by a tobacco tax, federal matching funds, a surplus in a high-risk insurance pool and a pot of money now used to cover the uninsured -- could lay the groundwork for more ambitious moves.

"This is foundational work," said John M. Colmers, secretary of health and mental hygiene. "Then we can further whittle away at the rest of the 750,000 uninsured."

Although the measure doesn't cover everyone who needs help, he said, the state had to start with people whose low incomes were still too high to qualify them for aid. "There is no market solution for people who are this poor," Colmers said.

About 69 percent of Marylanders got insurance through their jobs last year, compared with 67.7 percent of Virginia residents and 47.5 percent of D.C. residents, according to a study by the Economic Policy Institute in the District.

Small businesses often pay more to cover workers because they lack the buying power of big firms. For the small firms, the risk that someone will have a costly illness is spread across fewer people.

That's why Leonard Lane has never offered insurance to the four full-time and four summer workers he employs for painting and drywall work across Montgomery County. The wife of one of his workers recently ended up in the emergency room because she didn't receive treatment for Lyme disease that had lingered for months.

Lane says he wants to reward his workers, some of whom have been with him five years. "I can give them a raise, but if I could give them a raise and health care, that counts for something," he said. He's worried, though, that premiums for a company as small as his would run as high as the $1,100 he spends monthly to cover his wife and three boys on an individual plan.

The new law, drawing on $30 million a year, offers subsidies to companies with two to nine workers and moderate incomes to buy policies for employees. Lawmakers estimate that 35,000 people would be eligible. Some part-time workers could be covered, and the state will set a maximum-income limit.

Workers and their bosses will get subsidies of up to $1,000, leaving both to contribute to insurance premiums. Workers won't have to buy insurance but will have to be offered it if their bosses want the money.

A handful of states offer similar subsidies, tax credits or purchasing pools to make insurance cheaper for small businesses. But Maryland's new law has a provision that other states' programs don't: Workers must be offered plans with wellness programs, which are popular in many big companies, that aim to cut costs by encouraging healthy behavior.

"The governor wanted to make sure there was a degree of personal responsibility involved," Colmers said.

By signing up for free gym memberships, weight management advice, smoking cessation classes and by agreeing to control chronic conditions such as diabetes, workers could be eligible for cash rewards or lower deductibles.

The bill was opposed by Maryland's largest business groups because its funding was tied to a package of tax increases, some of which will hit their members.

With subsidies now a reality, small-business leaders say they hope the state has an aggressive plan to market the new benefit.

"This is going to require a real partnership to get the word out to the small-business owner," said Ellen Valentino, Maryland lobbyist for the National Federation of Independent Business, which represents small firms.

The measure is also designed to help people such as Barbra Lancelot, who had health insurance a year ago.

Lancelot, nearing 60, was laid off from a job working with preschool children and could not afford the monthly $376 premium to stay on the company's health plan. She suffers from three chronic illnesses: arthritis, fibromyalgia and depression.

She now works from her basement apartment in Silver Spring as a writer for nonprofit groups. Lancelot estimates that she will make less than $15,000 this year, making her eligible for the new Medicaid benefit. "I'm considered to be one of the lucky ones," Lancelot said. "What about the other 750,000 people? What will happen to them?"

Maryland offers children from poor and low-wage families some of the most generous health benefits in the country. But the state's coverage for adults ranks among the worst, with benefits limited to those earning less than half of the federal poverty rate.

The Medicaid coverage will expand over four years, first covering parents with incomes of less than $20,000 for a family of three -- about 30,000 people. Single, childless adults are next, as long as their income is 116 percent of the federal poverty level, about $12,000.

The health bill includes a pot of money for Prince George's County, whose financially troubled health-care system treats many low-income and uninsured people. Dimensions Healthcare System, which operates Prince George's Hospital Center and other county facilities, will get $50 million over four years, but only if the legislature or state and county leaders can reach a long-term financial solution for the system.

Staff writer Ovetta Wiggins contributed to this story.



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Assembly pushes health care and Bay fund across finish line
Posted on Tuesday, November 20, 2007 - 11:33 PM

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Bills to insure 100,000 people, put $50 million toward Bay pass in special session’s final hours

by Sean R. Sedam | Staff Writer
November 19, 2007

ANNAPOLIS — A plan to expand health care to 100,000 Marylanders and $50 million for Chesapeake Bay cleanup were included among the millions of dollars in tax increases and budget cuts passed during the special session that concluded early Monday.

The $200 million health care initiative will rely in the first year on money redirected from the Maryland Health Insurance Plan and on dedicating a doubling of the cigarette tax to $2 per pack.

It increases Medicaid eligibility to people with annual incomes of up to 116 percent of the federal poverty guidelines, or $11,844 a year.

‘‘This is great for the uninsured and it’s great for the rest of us also because we all pay for the hospitalization of the uninsured,” said Vincent DeMarco, president of the Maryland Citizens’ Health Initiative.

The plan also provides $20 million to help businesses with two to nine low-income employees provide health care. A Senate committee cut a $10 million subsidy to boost health coverage for businesses already providing some coverage.

Lawmakrers also voted to include $20 million in the current fiscal year’s budget to help keep Prince George’s Hospital Center afloat.

The funding is contingent on the Prince George’s County Council, County Executive Jack B. Johnson (D) and the state coming to an agreement on the hospital’s future.

The House of Delegates held off on the health care bill until delegates voted on slot machine gambling. The slots plan passed early Sunday morning, leaving delegates to focus on health care. The expansion plan passed 104-28 early Monday morning.

The expansion plan creates a foundation for extending health care to all, DeMarco said.

‘‘The importance of this bill is that it takes Maryland from being one of the worst for providing health care for adults to one of the states at the forefront of health care reform,” he said.

Health care advocates do not plan on pursuing any new expansion legislation during the 2008 session, DeMarco said. They will work with the state to make sure people who are eligible for Medicaid get enrolled. They also will work with experts from the Bloomberg School of Public Health at Johns Hopkins University to develop a plan for universal health care expansion that they hope to announce next year.

More work also lies ahead for environmental groups, who cheered the passage early Monday of $50 million dedicated to Chesapeake Bay restoration.

‘‘Within a tough fiscal environment, that the Maryland state legislature said the bay and restoring it is a top priority for us, we’re standing and applauding their commitment,” said Kim Coble, Maryland executive director of the Chesapeake Bay Foundation.

Senate President Thomas V. Mike Miller Jr. (D-Dist. 27) of Chesapeake Beach proposed the funding earlier this month as an alternative to the ‘‘green fund.”

That bill, which died in the Senate earlier this year and was resurrected for the special session, went through several iterations. The version proposed before the special session would have paid for Bay restoration by taxing existing development.

The funding plan passed Monday uses $13 million from the state’s 23.5-cent-a-gallon gasoline tax and $37 million from an 11.5 percent car rental tax.

To the delight of environmental groups, lawmakers decided against a Senate plan that would have used $30 million from the vehicle titling tax and $20 million from the state’s Program Open Space program.

While the funding is in place, how it is spent will be an issue when lawmakers return in January.

Time ran out on the special session before the Senate could take up a bill that would have set aside 30 percent of the $50 million in spending for improving agricultural practices and 30 percent for local governments to improve stormwater management practices.

The rest of the funding would have been allocated at the discretion of the BayStat’s program implemented by O’Malley to monitor Bay health and restoration efforts.

Environmental groups will work with BayStat and use the failed bill as framework for legislation that they will push for next year, Coble said.

Along with an existing ‘‘flush tax” added to water and sewer bills for wastewater treatment system upgrades, the new Bay funding will get Maryland 70 percent to 80 percent toward a federal deadline to reduce nitrogen levels in the bay by 2010, she said.



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House approves Medicaid expansion
Posted on Tuesday, November 20, 2007 - 10:49 AM

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Legislators tie part of bill to approval of slots

By Laura Smitherman
Sun reporter

November 19, 2007

The General Assembly approved legislation early this morning aimed at reducing the ranks of residents without health insurance in Maryland, advancing a measure championed by advocates as the first step toward confronting a lack of access to medical care.

The House and Senate approved a bill that would provide coverage to more than 100,000 when fully implemented in five years, sending the measure to Gov. Martin O'Malley for his signature. The bill expands eligibility for Medicaid, the federal-state health insurance program for the poor, and extends subsidies to as many as 37,000 small businesses to help offset the cost of offering insurance to employees.

Passage of the bill sought by O'Malley would put Maryland in league with other states addressing health care, an issue that's risen to the forefront of politics. The Maryland effort still falls short of other state programs that aim to provide universal health coverage, but O'Malley has said he would continue to push toward that goal. About 800,000 state residents, or 14 percent of the population, lack health insurance.

"This is a significant step forward for the state of Maryland in reforming its health care system," said Del. Peter A. Hammen,µ chairman of the House Health and Government Operations Committee. "Is it costly? Yes. But is it worth it? Absolutely."

The expansion of government-funded programs, which would eventually cost more than $600¤million a year, including $250¤million in state funding as well as federal matching dollars, had been mired in questions over whether the state could afford it. Legislators have been meeting in a special session to fix a projected budget shortfall of $1.7 billion.

Late last night, legislators agreed to add language to the bill sought by the Senate and intended to ensure that part of the Medicaid expansion happens only if voters approve slot machine gambling through a constitutional amendment on the November 2008 ballot. O'Malley envisions using slots revenue to help pay for the expansion.

O'Malley pledged that the expansion would have a pay-as-you-go feature, and the final bill also includes language that allows the administration to cap enrollment or limit benefits for childless adults if funding isn't available.

Senate President Thomas V. Mike Miller declined during the regular session this year to take up a similar health care bill that passed the House, noting budget concerns. His chamber did pass a version of the latest health care bill more than a week ago, but Miller warned that final approval would depend on passage of other revenue-raising measures.

House Speaker Michael E. Busch, a chief advocate for expanding coverage, postponed action on health care in the past week until his chamber acted on bills allowing slots if voters ratify the idea in a referendum. The House finished work on its slots bills early yesterday.

With 47 million Americans lacking health insurance and costs rising, health care has become the political watchword. Presidential candidates have unveiled their varying plans to expand coverage. And 28 states have considered measures on health care reform, said Richard Cauchiµ of the National Conference of State Legislatures.

Oftentimes, budgetary considerations have shaped the debate. Tennessee and Indiana have approved expansions this year, but their efforts don't call for the universal coverage envisioned by Massachusetts and Vermont, which passed more comprehensive plans in 2006.

Some House Republicans objected to increasing spending at a time of fiscal crisis. Del. Adelaide C. Eckardt, a GOP member from the Eastern Shore, failed to amend the bill to make it "revenue neutral," meaning it would be paid for by curtailing benefits or increasing cost sharing by Medicaid beneficiaries.

"Medicaid is one of the fastest-growing budgets we have not only in this state but in the country," Eckardt said. "This is the right bill at the wrong time."

Under Maryland's Medicaid expansion, adults earning up to 116 percent of the federal poverty level, or about $20,000 a year for a family of three, would be eligible. Maryland covers children in families earning up to three times the poverty level, but the state has a much lower threshold for covering adults -- about 40 percent, or about $5,000 a year.

The bill includes $30 million in annual subsidies for small businesses with fewer than 10 employees as well as their employees. The subsidy is contingent on the employer offering a wellness benefit. The bill also includes funding for the troubled Prince George's Hospital Center.

Some revenue would be redirected from the state's uncompensated-care fund, which reimburses hospitals in the state for treating the uninsured to pay for the expanded eligibility. Backers of the expansion say that residents with private insurance would save money because the cost of treating the uninsured is passed on through higher rates charged by hospitals, which is built into insurance premiums.

An expansion in Medicaid could help residents like Barbraµ Lancelot of Silver Spring, who has been without insurance for six months since health problems forced her to leave her job. While she is navigating state bureaucracy to determine if she is currently eligible for Medicaid, she may earn too much money through part-time work to qualify.

"When health insurance disappears, things can get bad pretty fast," said Lancelot, who is on nine prescription medications. "I just hope nothing happens to me that I have to go to the doctor or hospital. People just don't realize how difficult it is, how precarious it is. One illness and you could be in my situation."

Vincent DeMarco, who has been lobbying on the issue since 1999 and serves as president of the Maryland Citizens' Health Initiative, said: "This is a great day for working families of Maryland."



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Health care viewed as key issue in 2008
Posted on Thursday, May 03, 2007 - 02:14 PM

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Reform could be linked to budget deficit package

By Laura Smitherman
Sun reporter
April 16, 2007

The Maryland General Assembly adjourned without approving a multimillion-dollar plan to expand health care coverage to thousands of state residents, but the proposal remains on the table and the drumbeat for universal coverage is only expected to grow louder until lawmakers meet again.

The debate over how to help the growing number of uninsured, a costly dilemma that politicians across the nation are struggling to address, will once again butt up against Maryland's projected $1.5 billion budget shortfall in the next session. But lobbyists and lawmakers say the two issues could work in tandem, with health care as a sweetener in a potentially unpalatable tax package.

Just days after lawmakers departed Annapolis, the idea of a large legislative package is being floated. Such a package would close the budget gap and could include other programs that could be used to draw votes, including transportation funding, the legalization of slot machines and a revamping of the state's outmoded tax structure.

"It makes the sale of a tax package easier," said Sen. Thomas M. Middleton, a Charles County Democrat and chairman of the powerful Finance Committee, where the expansive health care proposal died this session. "It would be a whole lot less offensive for taxpayers if they know part of the funding is going to a health care expansion."

While the legislature did pass some health care legislation, including a measure requiring that insurers cover adults up to age 25 on their parents' policy, they did not approve an expansive proposal to bring more of the state's nearly 800,000 uninsured under Medicaid, the government insurance program for the poor. That plan, which passed the House of Delegates but not the Senate, is considered a blueprint for legislation in the next session.

The rising price of health care has made it a potent political topic, and the possible closure of Prince George's Hospital Center, which has suffered financially as it has cared for a large number of uninsured patients, has underscored the problem. Lawmakers and health care advocates say the number of Marylanders without health insurance could increase by 50,000 in the next year.

Laying groundwork

"What this session did was lay the foundation for a substantial health care expansion in Maryland, and I think that's going to happen the next time the Assembly meets," said Vincent DeMarco, president of the Maryland Citizens' Health Initiative, which has been lobbying for years on the issue. "The Prince George's County hospital disaster illustrates the need for health care coverage."

Gov. Martin O'Malley, who made affordable health care a priority after taking office in January, said he would continue to work with state leaders on finding ways to expand medical coverage but stopped short of endorsing any specific plans for the next session.

"One of my bigger disappointments in the session is that we didn't do more," O'Malley said.

Sweeping health care proposals have been introduced in several state legislatures, including in Pennsylvania, Illinois and California, often running into cost concerns.

"There are a number of states that are going to have a very serious run at expanding coverage," said Ron Pollack, executive director of Families USA, an advocacy group. "This issue is being catapulted toward the top of the domestic agenda."

The debate mirrors one taking place in the nation's capital. Congress wants to expand the government-subsidized insurance program for children in lower-income families, while President Bush has proposed curtailing it as part of a budget-balancing plan.

In Maryland, the financial demands are staggering. In addition to the deficit, health care plans could require as much as $400 million a year in state funds and transportation needs could reach $600 million annually. Even if slots were approved, bringing in as much as $800 million a year in revenue, the amount of money that needs to be raised is significant.

"It's going to take a lot of consensus-building," said Donald C. Fry, president of the Greater Baltimore Committee, a business group that lobbied for health care legislation. "And it's going to take some gut check on the part of elected officials to determine the level of funding that's needed, and whether they are willing to make that tough vote."

House Speaker Michael E. Busch said health care should take precedence as Maryland lawmakers face difficult choices on how to fund pressing issues. He expressed skepticism of a wide-ranging package, saying the logistics would be "daunting."

"The health care problem isn't going to go away; it will only become more of an issue with the average constituent," said Busch, a Democrat from Anne Arundel County. "It's just as pressing a problem as transportation, as our education system."

Busch pushed hard for a bill that would have extended Medicaid to more than 100,000 residents; it passed the House with broad support. The bill fell to opposition in the Senate, where Senate President Thomas V. Mike Miller took issue with the bill's main funding source, a doubling of the tobacco tax to $2 per pack of cigarettes.

Miller, a Democrat who represents Calvert and Prince George's counties, has warned colleagues that a painful budget-balancing process is imminent, and that lawmakers may need to return for a special session before next year. He has said the legislature would eventually address health care but that confronting the state's structural deficit is paramount and may require a number of solutions, including budget cuts, tax increases and slots.

Even the tobacco tax remains an option. While O'Malley and Miller said the tax would be an inappropriate revenue stream for health care because it declines as fewer people smoke, lawmakers left open the possibility of raising it to shore up the general fund.

The main thrust of any health care fix is likely to be an expansion of Medicaid for adults; the state's program already covers children in families earning up to three times the poverty level ($20,650 a year for a family of four).

The failed House bill would have tripled the maximum allowable income for Medicaid coverage for adults to about $12,000 a year for individuals, or about 115 times the poverty level, at a cost of roughly $200 million a year in state funds.

Proposals, including one from O'Malley, to raise the eligibility threshold for children have met with concerns about the "crowding-out effect." That means people drop their employer-provided insurance programs to enroll their children in Medicaid, which requires participants to pay a sliding-scale premium at higher income levels that is typically cheaper than private insurance.

Health care bills

The legislature did pass several less-expansive bills on health care in the latest session.

One measure, also included in the O'Malley proposal, requires that private insurers and the health plan for state employees allow adults up to age 25 to stay on their parents' plan, and that insurance policies cover domestic partners and their children.

Other legislation authorizes health insurers to provide discounts to small employers that participate in wellness programs, including smoking cessation plans and nutrition education, and would encourage new types of insurance products for seasonal and part-time workers.

"I wouldn't look at the session as a complete loss for health care progress," said Ronald W. Wineholt, a lobbyist with the Maryland Chamber of Commerce who worked on health care legislation. "There were some small steps that were taken that I think will prove helpful."

Another bill calls for a study of so-called individual mandates, under which residents must obtain health insurance or face financial penalties, as well as employer mandates that would force businesses to provide health plans for workers.

Some of the proposals slated for study could be part of legislation in the next session, and are aimed at getting people insured who may not be eligible for Medicaid.

Lawmakers were surprised by the findings of past study groups. For instance, people who make more than four times the poverty rate, or about $80,000 for a family of four, comprise about 25 percent of the uninsured. Also, more than half of Maryland's uninsured are working adults. And those aged 19 to 29 are the least likely to have insurance coverage through an employer, with an uninsured rate of about 28 percent.

"We'd like to see a multifaceted package that's not limited to a Medicaid expansion," said Nancy Fiedler, senior vice president of the Maryland Hospital Association. "We'd still like to go back and have the broader discussion."



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Unfinished business - Unresolved fiscal issues thwart health insurance reform
Posted on Friday, March 30, 2007 - 10:31 AM

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DORI BERMAN
Daily Record Business Writer
March 29, 2007

ANNAPOLIS — Last summer, while Maryland’s lawmakers were busy campaigning, Del. Peter Hammen took some time to contemplate Maryland’s health care crisis.

The Baltimore Democrat knew the problem — 800,000 uninsured Marylanders — and he came up with what he thought was an ideal first step: a $1 cigarette tax increase to address what he viewed as the first order of business, to increase poor adults’ access to Medicaid.

Hammen, chairman of the House Health and Government Operations Committee, joined other legislative leaders in declaring 2007 as the year of health care reform.

But even before Hammen announced his plan, Senate President Thomas V. Mike Miller Jr. D-Calvert and Prince Georges, called it “dead on arrival.” Miller refused to consider raising revenue to pay for health care without addressing the larger budget problem of a $1.4 billion structural deficit.

Now, with just over one week left before lawmakers adjourn for the year, the chances of passing legislation that significantly addresses the uninsured problem are worse than dim.

The General Assembly’s failure to pass any significant health benefits expansion this year means lawmaker will return in either a special session later this year or in next year’s regular session facing both the budget deficit and the lingering problem of 800,000 citizens without medical insurance.

“We’re going to have to find money to fund this,” Hammen said. “If the bill doesn’t move forward this year, we will certainly want to incorporate the provisions of the bill [into the overall revenue package next year] and perhaps go beyond what the bill does.”

Hammen’s bill, House Bill 754, would use the cigarette tax increase and federal matching dollars to expand Medicaid. Maryland now does a good job of covering children, Hammen says, but falls so short when it comes to adult coverage that “we should be ashamed of ourselves.”

Under current law, adults are only eligible for Medicaid if they earn less than 42 percent of the poverty line, or less than $5,000 for a single adult.

Though his hands were tied this session by Miller, Senate Finance Committee Chairman Thomas “Mac” Middleton, D-Charles, said he also believes there needs to be some Medicaid expansion.

“I think we have a mandate from the voters in the last election. Health care is the number one issue,” Middleton said.

But at a price tag of several hundred million dollars, Middleton gave two reasons why any major Medicaid expansion would have to happen in conjunction with the revenue package crafted to fix the state’s structural deficit.

First, the revenue package itself — which may end up being a combination of slot machines, tax increases and budget cuts — will need as much support as possible. Health care advocates in Annapolis make a lot of noise, and their backing would provide extra weight when pushing a major revenue package.

Second, Middleton said he doesn’t believe legislators will have the political will to find the money for health care expansion if they wait until after dealing with the deficit. No one will want to come back in 2009 and raise taxes again after asking the taxpayers in 2008 to help take on a $1.4 billion burden, he said.

“I’m pushing to address the health care issue” as part of the revenue enhancement, Middleton said.

That concept will have its opponents. House Minority Leader Anthony O’Donnell, R-Southern Maryland, said lawmakers should figure out how to pay for the state’s current commitments, such as the Thornton education funding plan, before coming up with new spending items.

“[Democratic leaders] see increasing taxes as the solution to everything,” O’Donnell said, adding that the Republican Party would rather focus on things like small-group insurance market reform to bring down the cost of insurance.

But Del. Murray Levy, D-Charles, one of the House’s budget experts, said the Senate leaders have not been unreasonable in their wish to consider the health care issue only as part of the larger budget problem.

Levy, an accountant, believes in saving money wherever possible. But when it comes to whether lawmakers should add costly items to commitments the state already can’t afford, he says “it depends on the program.”

Every person elected to the General Assembly last November heard from constituents about their concerns over health care costs, Levy said. But to address the concerns of Maryland residents, he said the reforms will have to reach beyond Medicaid expansion.

“One of the concerns about the health care package we passed [Hammen’s bill] is it simply expands coverage, but it doesn’t do anything to make it more affordable,” Levy said. “One of the things we’ve never done is a scaled-down health package. As a result, costs are spiraling out of control.”

So lawmakers will once again be contemplating health care reform during the interim.

But just because the 2007 session will apparently end without any major changes, lawmakers say it wasn’t a waste of time.

“I think we have some real numbers now as to what our problem is,” Middleton said. “From ground zero it looks chaotic, but from 10,000 feet it’s a very, very progressive and real look at where we need to be. I think a lot of things are going to be set in place, so when we come back here with a revenue package, we’re ready to go.”

And while Hammen still isn’t giving up hope that Middleton will reconsider the House bill, he agreed that even if it does not pass, this year helped the process along.

“I certainly believe we brought a lot of issues to the forefront,” Hammen said. “I think we charted a good road map.”



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Miller pressed to back health bill
Posted on Friday, March 30, 2007 - 10:34 AM

sunlogo  

Advocates bombard his offices with calls

By Laura Smitherman
sun reporter

March 30, 2007

The phones have started ringing in the stately offices of Maryland Senate President Thomas V. Mike Miller, and the deluge of calls is not expected to let up until the General Assembly session ends in less than two weeks.

The retiree organization AARP has set up a phone bank and plans to call 10,000 members who can then be patched directly to Miller's office to demand action on legislation that would extend medical coverage to uninsured residents.

Miller opposes a bill, easily passed by the House of Delegates, that would fund expanded government health care through a $1-a-pack increase in the tobacco tax.

No politician relishes calls from angry constituents, let alone calls from thousands of them who are coordinated and ready to talk legislative details. That is the kind of pressure that health care advocates are trying to bring to bear in Annapolis as prospects dim for the House bill, the most expansive of health care proposals pending in the legislature.

"We've got to do something about the uninsured and bring health care to our Maryland neighbors," said Joseph DeMattos, director of AARP Maryland. "We're saying, 'We can't wait another year.'"

The campaign reflects the view of several health advocacy groups that with a new Democratic governor in office and the House leadership behind the proposal, now is the time to push for expanded health care coverage.

Their efforts have been caught up in a disagreement between House and Senate leaders over tax increases as the state faces a projected $1.5 billion budget shortfall for the fiscal year that will begin in July 2008.

Looming over the debate are the Democratic leaders' differences over whether to legalize slot machines to raise revenue. Miller backs the idea, and House Speaker Michael E. Busch is adamantly opposed.

Miller, who can effectively control what bills are brought to the Senate floor, has said emphatically that his chamber will not pass the House health-care bill this session. He argues that the legislation is fiscally irresponsible and that revenue from any tobacco tax increase should be used to close the budget gap.

Busch counters that a meaningful expansion in access to affordable health care is not possible without a dedicated revenue source. "You're not going to have any comprehensive health care remedy unless you have funding of the magnitude of what we're talking about in the House," he said.

If the standoff between the chambers - and particularly between Miller and Busch - continues, lawmakers acknowledge that the legislature this year may not address how to cover any of the nearly 800,000 Maryland residents who lack insurance.

That marks a sharp shift since the beginning of the session, when Gov. Martin O'Malley trumpeted the need to help the uninsured. He doesn't support using the tobacco tax for health care and has said budget realities might dictate how quickly the state can address the problem.

No 'good vibes'
"It is highly possible that nothing of substance will get done this year," said Del. Peter A. Hammen, a Baltimore Democrat and lead sponsor of the House bill. "I don't want to give up. I don't want to be a naysayer. But I'm just not getting good vibes from Senate leadership."

Meanwhile, proponents have homed in on all state senators.

National organizations such as Campaign for Tobacco Free Kids and Planned Parenthood are urging members to e-mail or call their senators. Local groups such as the Maryland Women's Coalition for Health Care Reform are visiting doctors' offices to enlist supporters. And the Towson University College Democrats are canvassing neighborhoods in key districts.

Comptroller Peter Franchot has been contacting senators and directing staffers to focus on lobbying for health-care legislation for the remainder of the legislative session.

Phone and e-mail drives have proved successful before. Some legislators said they were influenced by contacts from constituents before passage of a statewide smoking ban in bars and restaurants this week. Advocacy groups also point out that their members are often more likely to vote. In fact, AARP says one-fourth of all votes cast in Maryland are from members.

Such efforts can backfire. Sen. Katherine A. Klausmeier, a Baltimore County Democrat, said she has received "tons of calls" but that sometimes callers are referred en masse and don't understand the issues. Asked whether recent efforts to push health-care legislation will make a difference, she said, "It's hard to say. It's like a logjam right now. There's a consensus around not raising taxes."

Lobbyists who had opposed the House bill have moved on to other issues.

Bruce C. Bereano, who represents the Maryland Association of Tobacco & Candy Distributors, fought the tobacco tax increase but stopped lobbying a few weeks ago when a conflict arose because the bill was amended to direct funding to the struggling Prince George's Hospital Center, another of his clients. Besides, he said, his efforts are no longer needed.

"The bill is bleeding to death so badly that I don't need to load my gun," Bereano said.

Advocates say polling shows overwhelming support for health care reform. They also point out that all residents end up paying for the problem because hospitals in the state charge higher rates to cover the cost of treating the uninsured, which totals about $800 million a year. That pushes private insurance rates higher, adding an estimated $1,000 to the annual premium for the average family plan.

The House bill would extend medical coverage to more than 100,000 residents, mostly by raising the income level at which an individual or family qualifies for Medicaid, the government health insurance program for the poor. It also would require private insurers and the health plan for state employees to allow adults up to age 25 to stay on their parents' plan.

Narrower Senate bill

The Senate approved a far narrower health-care bill, a proposal of O'Malley's that was trimmed by the Senate Finance Committee. That $3.5 million plan would allow all families not covered by Medicaid to buy into the program by paying the full premium for their children, while requiring insurers to cover children up to age 25.

Busch said the Senate bill doesn't do enough. "It is like putting an extra lifeboat on the Titanic," he said. "A few people would get help, but the vast majority of people are going to go down with the ship."

The Senate Finance Committee held a hearing on the House bill yesterday, and the House Health and Government Operations heard testimony on the Senate bill.

Committee chairmen have acknowledged that they probably won't vote on the other chamber's proposal, which would be the death knell for both bills.

That hasn't dampened hope among activists.

"Until the legislative clock strikes midnight, it is not over," said Dr. Martin P. Wasserman, executive director of MedChi, a professional society for doctors, who has been dropping in on Senate Finance Committee members. "We believe they ought to be held accountable."


Pros and cons

The General Assembly is considering a bill to expand medical coverage for uninsured residents by doubling the tobacco tax to $2 per pack of cigarettes. Here are some pros and cons of the proposal backed by the House of Delegates:
Pros:
• Extends access to health care to more than 100,000 people.
• Discourages teen smoking.
• Lessens burden of uninsured on hospitals, which charge higher rates for their treatment.

Cons:
• Ties health care to tax that declines as fewer people smoke.
• Expands government programs when the state is facing a $1.5 billion projected budget shortfall next year, and limits revenue options for closing the gap.



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