Rotunda Archive

April 23, 2009

The Nebraska Hospital Association – Nebraska's influential voice for health care.

If you have questions or concerns about any state legislation, please contact Bruce Rieker, Vice President, Advocacy, at (402) 742-8146 or brieker@nhanet.org; or Cora Micek, Advocacy Coordinator, at (402) 742-8153 or cmicek@nhanet.org. 

Bills of interest to NHA members advance

The following bills of interest to NHA members advanced recently. Below each bill number and description is the bill's current status.

• LB 159 — Provide an income tax credit for long-term care insurance policy premiums
  Status: Advanced to Final Reading
   
• LB 294  — Change the length of time for county building levies
  Status: Moved to Select File
   
• LB 420 — Change a sales tax exemption relating to nonprofit organizations
  Status: Advanced to Final Reading
   
• LB 489 — Adopt the Area Health Education Centers Act
  Status: Advanced to Final Reading
   
• LB 551 — Extend the limiting age on sickness and accident insurance policies
  Status: Advanced to Final Reading
   
• LB 604— Change the Pharmacy Practice Act to change provisions relating to medical gas distribution
  Status: Enrollment and Review ER8085 filed
  
   

Funds available for hospitals through American Recovery and Reinvestment Act

An examination of the American Recovery and Reinvestment Act (ARRA) reveals that there are additional funds available for hospitals serving the uninsured and vulnerable.

The information below has been developed by the Nebraska Legislature regarding funding that will flow into the state as a result of the passage of ARRA. It reflects data gleaned from a variety of sources, primarily federal, and has been prepared by the staff of the Legislative Fiscal Office.

Medicaid Match Rate (FMAP)

• Estimated total  = $224,498,148
• Appropriated FY08-09 = $64,840,697
• Appropriated FY08-09 = $96,899,699
• Appropriated FY08-09 = $62,757,752

The federal match rate (FMAP) is increasing 6.2 percent retroactively back to October 1, 2008 through December 30, 2010. In Nebraska the match rate changes from 39.69 percent  to 33.49 percent in FY 10 and a blended rate for FY 11 of 36.34 percent rather than 39.69 percent.

All Medicaid aid expenditures are eligible for the increased match, except Disproportionate Share Hospitals (DSH), breast and cervical cancer treatments and family planning. DSH is an allotment provided to states. It is increased in the ARRA. Nebraska currently does not use the full allotment, so this provision does not have an impact in this state.

The ARRA requires that eligibility standards, methodologies or procedures cannot be more restrictive than those in place on July 1, 2008. The only proposed restriction in the Appropriations Committee’s preliminary recommendation is the assessment of premium payments on eligibles whose family incomes exceeds 185 percent of poverty beginning in FY 11. As the institution of a premium would in effect lower the income standard for participation in the program, this provision will need to be pushed back until outside of the enhanced FMAP period. It could be started January 1, 2011 without jeopardizing the enhanced match rate.

Health Coverage Improvement - Premium Assistance for COBRA Benefits

Medicaid DSH

• Estimated total = $693,021
• State match required

Disproportionate Share Hospital payments (increased rates paid to hospitals serving a higher proportion of Medicaid, Medicare and uninsured patients) are not eligible for the increased FMAP, but ARRA does increase the amount of the state's allotment. Nebraska does not fully utilize its current allotment in the current fiscal year or in the committee's budget recommendation. Therefore, the increase in the allotment is not applicable to Nebraska as the budget is currently configured. The regular Medicaid match rate (40 percent GF and 60 percent FF) would be required to obtain the higher allotment.

Labor

The Department of Labor, Employment and Training Administration administers funds under the Workforce Investment Act (WIA). The ARRA adds $3.95 billion to these funds, which are available in the form of grants to state and local governments between the date of enactment (February 17, 2009) and June 30, 2010. The ARRA allows local workforce investment boards to contract with institutions of higher education if this would boost enrollment in training programs for high-demand occupations.

WIA - Dislocated Workers

Nebraska Dept. of Labor submitted a request for this money on March 9, 2009. This was in accordance with Unemployment Insurance Program Letter 13-09 dated February 24, 2009.

• Estimated total = $2,591,113

WIA - Youth

• Estimated total = $2,944,616

WIA - Adult

• Estimated total = $1,234,406

Click here to review the Legislature's "economic stimulus" web pages have been updated with a document prepared by the Legislative Fiscal Office.


 

Bill would change statewide trauma system

LINCOLN— Senators gave first-round approval April 22 to a bill that would bring Nebraska’s Statewide Trauma System Act into compliance with federal requirements. LB195, introduced by Papillion Senator Tim Gay, would revise several definitions relating to the statewide trauma system and would require that:

• basic level trauma centers maintain appropriate equipment for resuscitation and stabilization of pediatric trauma patients;
• general level trauma centers provide trauma-trained physicians and nurses to the emergency department within 30 minutes; and
• comprehensive level trauma centers provide an emergency trauma team available within 15 minutes, 24 hours a day.

Read more.

— Unicameral Update, April 17, 2009

 

Lost jobs could mean more stimulus money

LINCOLN— Nebraska may get about $31 million more in stimulus funding over the next few years, but the reason is bad news. Nebraska’s most recent unemployment rate — 4.6 percent for March — likely puts the state in a new stimulus category, eligible for another $31.6 million over the next few years. Read more.

— Lincoln Journal Star, April 22, 2009

Safer cigarette bill amended, advanced

LINCOLN— Senators amended and advanced a bill April 23 that would require cigarettes sold in Nebraska to meet fire safety requirements by adopting the Reduced Cigarette Ignition Propensity Act.

According to Platte Center Senator Arnie Stuthman, sponsor of LB 198, reduced ignition propensity cigarettes are manufactured with additional layers of paper so the tip does not maintain enough heat to ignite other materials if left unattended. Such cigarettes carry an “FSC” stamp or other approved marking signifying fire standard compliance. Read more.

— Unicameral Update, April 23, 2009

 

State's revenue forecast shrinks, again

LINCOLN— The state budget was dealt another dose of bad news Thursday. A tax forecasting board projected an additional drop of $67.7 million in state tax revenues this fiscal year. Combined with about $3.2 million in lower collections expected from income and corporate taxes because of the president's economic recovery plan, the total reduction in revenue to the state was put at $71 million.

The projection by the Nebraska Economic Forecasting Board tells state lawmakers how much money they have to spend. The downward forecast will force reconsideration of legislative proposals that cost money and whether to dip deeper into the state's cash reserve funds, the so-called "rainy day" fund.

Forecasting board members said they saw few differences in the dismal state of the state's economy since their February meeting. Most also said they didn't expect the economic recovery to start until late this year or early next year, and to be slow and gradual.

— Omaha World-Herald, April 23, 2009

 

Democrats consider bypassing GOP on health care plan

WASHINGTON—With solid majorities in both houses of Congress, Democrats are tempted to use their political muscle to speed passage of health care legislation with minimal concessions to the Republican minority. That approach may be the only way they can fulfill President Obama's campaign promises, but it carries high risks as well, according to this analysis from the New York Times. Read more.

— New York Times, April 23, 2009

 

Nebraska's U.S. Senators support bill to improve rural health care

WASHINGTON—Nebraska Senator Ben Nelson has introduced legislation that he says will improve health care in rural Nebraska. Nebraska Senator Mike Johanns announced he is an original co-sponsor of the bill, called the "Health Professionals State Loan Repayment Tax Relief Act."

The legislation is aimed at providing tax relief on student loan repayments to medical professionals who choose to work in rural areas where there are gaps in health care services. Read more.

— KOLN/KGIN, April 22, 2009

 

Health insurance subsidy for laid-off workers has holes

WASHINGTON—A new federal subsidy designed to help laid-off workers pay for health insurance could be out of reach for thousands of jobless workers because they worked for a small company or their former employer has gone out of business. The subsidy, part of the economic stimulus package, covers 65 percent of COBRA premiums for individuals laid off between September 1, 2008, and the end of this year. The subsidy is available for up to nine months. Read more.

— USA Today April 23, 2009

 

Chamber says it’s not ready to declare card-check dead

Steven Law, a leading player for the U.S. Chamber of Commerce’s campaign to block organized labor’s top priority, is not ready to declare victory just yet. It doesn’t matter that Democrats were at least one vote short in the Senate when Senator Arlen Specter (R-PA) announced last month that he would oppose the card-check bill — a decision that effectively killed the measure for the time being and that came after Law help usher about 70 small-business owners to a meeting with the senator. Read more.

— The Hill, April 21, 2009

For more information about health-related legislative bills or resolutions, contact: Bruce Rieker, Vice President, Advocacy, at (402) 742-8146 or brieker@nhanet.org or Cora Micek, Advocacy Coordinator, at (402) 742-8153 or cmicek@nhanet.org.

NHA Rotunda Review is published by the Nebraska Hospital Association, 3255 Salt Creek Circle, Lincoln, NE 68504. Phone (402) 742-8140, Fax (402) 742-8191. Visit our Web site at http://www.nhanet.org. Kelley Porter, editor, at (402) 742-8151, or email, kporter@nhanet.org.

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