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Rotunda Review
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July 22, 2009

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

Advocacy Resources

NHA Legislative bills of interest

NHA Advocacy Action Center

Nebraska Legislature online

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The Unicameral Web site has been redesigned and includes comprehensive information about the senators, bill status, legislative calendar and news.

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



Legislative Wrap-Up: 2009 by the numbers...

First Session of the 101st Legislature

  • 90-day session convened on January 5, 2009

  • 681 legislative bills introduced

  • 156 "bills of interest" to NHA members
       – Of those 156 bills, the NHA initially:

    • Supported 49
    • Opposed 14
    • Monitored 91
    • Was Neutral on 2
       
  • The NHA testified 61 times before 7 of the 14 standing committees.

  • The first session adjourned on May 29, 2009
       – 63 bills of interest signed into law
       – 24 indefinitely postponed or withdrawn
       – 69 carried over to 2010

2009 Legislative Interim

  • 137 legislative interim study resolutions (ISRs) introduced

  • 39 ISRs "of interest" to NHA members

Composition of 101st Legislature: January 2009 – January 2011

  • 49 senators
    – 16 senators new in 2009
    – Less than 2.4 years average legislative experience
    – More than 75 percent with less than 2 years of experience

 

Legislative Bills Signed Into Law

The following bills of interest were signed into law during the 2009 legislative session:

APPROPRIATIONS COMMITTEE

LB 315: Appropriate Funds for State Government Expenses

Sponsor: Sen. Mike Flood
NHA Position:
Monitored and supported several provisions
Effective Date:
July 1, 2009

LB 315 is the Legislature’s 2009-11 mainline biennium budget package that includes:

  • A 1.1 percent increase in state spending

  • Significant spending increases include:
    – Tax Equity and Educational Opportunities Support Act ("TEEOSA" or state aid to education) - $240.5 million
    – Beatrice State Development Center (BSDC) loss of federal funds - $49.5 million
    – Development disability assistance - $33.1 million
    – Public assistance without changes from American Recovery and Reinvestment Act (ARRA) - $3 million
    – Behavioral health aid - $7 million
    – Department of Health and Human Services (DHHS) facilities operations - $4.4 million
    – Public health aid - $2.1 million
    – University of Nebraska Medical Center (UNMC) College of Nursing in Norfolk operations - $1.9 million

  • Significant reductions include:
    – $7 million transfer from regional centers to community-based programs
    – $6.6 million reduction in children’s health insurance programs
    – $3.3 million adjustment for BSDC declining census

  • Community-based developmental disability assistance increases include:
    – $5.5 million for rate equity
    – $5 million per year to transition BSDC clients to community-based services
    – $15.7 for development disability waiting list

  • Children’s health insurance program (Kids Connection) adjustments include:
    – $3.7 million base reduction due to underutilization of inpatient hospital, inpatient mental and drugs
    – 1.5 percent provider rate increase

  • Medicaid adjustments include:
    – Rate increase of 1.5 percent per year for all services
    – ARRA impact allows state spending reduction of $12.2 million
    – State spending reductions that were eligible for federal matching dollars: 

    • $637,878 reduction due to implementation of two-tiered payment rate with 20 percent payment differential for inpatient and outpatient procedures, compared to those performed in an office
    • $49,556 cut in Indirect Medical Education funding
    • $843,137 eliminated from outpatient reimbursement rates
    • $213,215 reduction caused by revising premium payments for families up to 185 percent of the Federal Poverty Limit (FPL)
  • Additional support of $465,874 for all five federally qualified community health centers (FQHCs) located in Omaha (2), Lincoln, Columbus and Gering

  • $200,000 per year for the Every Woman Matters program, which provides reimbursement for mammograms, breast examinations, pap smears and colposcopies

  • $400,000 per year for the Stay in the Game program to provide reimbursement for screening and early detection of colon cancer, rectal cancer and associated laboratory costs

  • 3 percent increase per year for area agencies on aging

 

HEALTH AND HUMAN SERVICES COMMITTEE

LB 84: Eliminate the Termination Date for the Women’s Health Initiative Advisory Council

Sponsor: Sen. Amanda McGill
NHA Position:
Support
Effective Date:
September 5, 2009

LB 84 removes the termination date for the Women’s Health Initiative Advisory Council, which was created for the purpose of advising and serving as a resource for the Nebraska Health and Human Services Office of Women’s and Men’s Health in carrying out its duties as enacted by the Legislature in the Women’s Health Initiative of 2000. The advisory council is comprised of governor-appointed health care experts and represents a broad range of disciplines. Members provide direction for health awareness and insight on new developments in women’s and men’s health.

LB 195: Change the Statewide Trauma System Act

Sponsor: Sen. Tim Gay
NHA Position:
Support
Effective Date:
September 5, 2009

LB 195 revised several definitions relating to the statewide trauma system, including requiring that state trauma plan be updated every five years instead of every two years; updating the duties of the State Trauma Advisory Board; and changing provisions with respect to designation of trauma centers.

Portions of bills amended into LB 195 include:

  • LB 220: Change Provisions Relating to Pharmacy Practice and Pharmaceuticals –Traditionally, long-term care pharmacy practice has been required to follow a "retail" model. Long-term care pharmacy practice, however, has evolved to resemble a "hospital" model of practice, while still maintaining some aspects of retail practice. The purpose of LB 220 is to update Nebraska statutes to today’s long-term care facility pharmacy practice standards.

  • LB 250: Change Physician Assistant Provisions Nebraska originally authorized physicians to employ physician assistants (P.A.s) in the early 1970s. In 1985, that authority was expanded to allow the use of P.A.s in secondary offices and hospitals. Inclusion of LB 250 updates scope of practice, eliminates additional levels of credentialing for the supervising physician, allows P.A.s to sign death certificates and expands the number of P.A.s a physician may supervise from two to four.

LB 288: Health and Human Services Omnibus Bill

Sponsor: Health and Human Services Committee
NHA Position:
Monitored and supported several provisions
Effective Date: June 1, 2009

Portions of bills amended into LB 288 include:

  • LB 172: Change the False Medicaid Claims Act and Create a Fund – Creates the State Medicaid Fraud Control Unit Cash Fund. The new law requires all recoveries for the state’s costs and attorney’s fees received pursuant to the False Medicaid Claims Act to be credited to a fund that shall be maintained by the State Department of Justice and administered by the attorney general.

  • LB 173: Relabeling and Redispensing of Prescription Drugs at Certain Correctional Facilities – This provision permits correctional facilities and jails to contract with pharmacies to allow for the return, relabeling and redispensing of unused prescription drugs prescribed to inmates.

  • LB 371: Change Medicaid Reform Plan and Medicaid Reform Council Provisions – This component removed the sunset provision for the Medicaid Reform Council; provided for members’ terms of service; increased the Department of Health and Human Services’ accountability to the council and the public, made council and public participation ongoing components of Medicaid reform; and reinforced legislative involvement in Medicaid reform.

  • LB 390: Reimbursement Rates for Assisted Services for Persons with Developmental Disabilities – This provision changed reimbursement unit for assisted services funded through the Division of Developmental Disabilities for community-based services from an hourly to a daily unit.

  • LB 462: Human Immunodeficiency Virus Testing – Eliminates the need for special written informed consent to administer the HIV test if a person has signed a general consent form for the performance of medical tests or procedures.

  • LB 599: Require Health Care Facilities to Provide Itemized Billing Statements upon Patient’s Request – LB 599 provides that a patient is entitled to an itemized billing statement, with diagnostic codes, at any health facility or health care practitioner facility, upon their written request.

LB 396: Medical Home Act

Sponsor: Sen. Mike Gloor
NHA Position:
Support
Effective Date:
September 5, 2009

A medical home is a location, usually a clinic or physician’s office, where a patient can build a relationship with a primary care provider who will coordinate the health care of the patient and provide them with guidance and education on all of their health needs.

LB 396 provides a mechanism for Nebraska Medicaid recipients to have access to better health care through a medical home; provides incentive payments through Medicaid for primary care physicians who provide a medical home; and slows the growth of Medicaid expenditures.

LB 603: Behavioral Health Workforce Act (aka Safe Haven Package)

Sponsor: Health and Human Services Committee
NHA Position:
Support
Operative Date:
May 26, 2009

LB 603 creates the Behavioral Health Workforce Act. The intent of LB 603 is to improve community-based behavioral health services by increasing the number of behavioral health professionals and providing training to these professionals in evidence-based practice and alternatives delivery methods, including utilizing existing infrastructure and telehealth services resulting in an expanded outreach in rural areas of Nebraska. It creates the Behavioral Health Education Center and adds eight additional medical residents in a Nebraska-based psychiatry program by 2013.

Portions of bills amended into LB 603 include:

  • LB 136: Change Provisions for Eligibility for Medical Assistance – LB 136 makes necessary improvements to Nebraska’s State Children’s Health Insurance Program (SCHIP), referred to as Kids Connection, in order to provide health care to more of our state’s low-income children. LB 136 increases income eligibility for Nebraska families with children under 19 years of age from 185 percent to 200 percent of the federal poverty level (FPL).

  • LB 346: Require the Department of Health and Human Services (DHHS) to Provide Services Relating to Children’s Behavioral Health, Adoption and Guardianship – LB 346 requires DHHS to establish a Children and Family Support Hotline; a Family Navigator Program, which consists of trained individuals who will provide peer support and connection to services; and post-adoption and post-guardianship case management services for families.

  • LB 356: Behavioral Health Services for Children Without Parental Relinquishment of Custody – This legislation will provide services for children with behavioral health disorders when their parent or parents voluntarily request those services and also seeks to reduce the number of parents who have legally transferred custody of their children to the state, so that they may receive behavioral health services.

  • LB 601: Medicaid Waiver for Community-based Mental Health Services – LB 601 directs DHHS to submit an application by July 1, 2009 to the U.S. Department of Health and Human Services for funding to allow Medicaid payments for various community-based mental health services, including secure residential and sub-acute behavioral health services.

 

BANKING, COMMERCE AND INSURANCE COMMITTEE

LB 358: Change the Comprehensive Health Insurance Pool Act

Sponsor: Sen. Rich Pahls
NHA Position:
Opposed but agreed to final compromise
Effective Date:
September 5, 2009

The Nebraska Comprehensive Health Insurance Pool (CHIP) program provides health insurance for approximately 5,000 Nebraska residents who are unable to obtain insurance through their employer or private plans due to pre-existing medical conditions.

LB 358 was introduced at the request of Nebraska’s director of insurance and makes various changes throughout the CHIP program for the purpose of keeping the program solvent. The plan administrator, Blue Cross and Blue Shield of Nebraska, is now charged with working with providers to develop a plan to find nearly $10 million per year in savings to maintain this program.

 

JUDICIARY COMMITTEE

LB 403: Require Verification of Lawful Presence in the United States to Receive Public Benefits as Prescribed

Sponsor: Sen. Russ Karpisek
NHA Position:
Opposed but agreed to final compromise
Effective Date:
October 1, 2009

LB 403 will require all public hospitals to verify the legal residence of any new employee. To accomplish this task, public hospitals will be required to register and use a federal immigration verification system operated by the United States Department of Homeland Security or an equivalent program designated by the Department, which is the current E-Verify system.

This new law also requires public entities to verify an individual’s lawful presence before providing public benefits. Public benefits include health payments, but excludes organ transplant and emergency procedures. Medicare and Medicaid recipients do not require verification. It is the responsibility of the federal or state government to certify eligibility.

 

Legislation Carried Over

The following bills of interest were carried over to the 2010 legislative session:
 

HEALTH AND HUMAN SERVICES COMMITTEE

LB 489: Adopt the Area Health Education Centers Act

Sponsor: Sen. Arnie Stuthman
Status:
Advanced to Final Reading
NHA Position:
Support

The purpose of LB 489 is to ensure funding for the Area Health Education Centers (AHECs), which provide direct support to underserved and rural areas and as a result have a direct impact on increasing the health care workforce supply (e.g., physicians, physician assistants, nurses, dentists, behavioral and mental health providers, and other public health professionals) and on decreasing the inequities in access and quality of health care services. There are five AHEC centers located across the state.

 

REVENUE COMMITTEE

LB 112: Exclude Certain Rural Health Loan Repayments From Income Taxation

Sponsor: Sen. Lavon Heidemann
Status:
Advanced to Final Reading
NHA Position:
Support

The purpose of LB 112 is to exclude from state income taxes, the loan repayment made to eligible health professionals who practice in state defined medical shortage areas under the Loan Repayment Program, which was established as part of the Rural Health Systems and Professional Incentive Act. The repayment program began in 1994 and involves a three-year practice obligation. To date, more than 300 health professionals have participated in this program.

LB 159: Provide an Income Tax Credit for Long-term Care Insurance Policy Premiums

Sponsor: Sen. Tim Gay
Status:
Advanced to Final Reading
NHA Position:
Support

LB 159 would allow a nonrefundable income tax credit equal to 25 percent of premiums paid for a long-term care insurance policy. The total credit could not exceed $250 for individual policies and $500 for joint policies. The credit may be claimed for a maximum of three years. Under the bill, the credit would not be allowed if the taxpayer used the adjustment to federal gross income for contributions made pursuant to the Long-Term Care Savings Plan Act the same tax year.

LB 420: Change a Sales Tax Exemption Relating to Non-profit Organizations

Sponsor: Sen. Galen Hadley
Status:
Advanced to Final Reading
NHA Position:
Support

The purpose of LB 420 is to amend outdated Nebraska statutes, which would extend a sales and use tax exemption to non-profit health clinics owned by a single nonprofit hospital. The Nebraska Department of Revenue recently began auditing nonprofit clinics, which has resulted in back-tax assessments. Currently, Nebraska statutes require that a non-profit health care clinic be owned by two or more non-profit hospitals in order to be tax-exempt. This bill would help ensure access to affordable health care throughout the state. Without the passage of LB 420, some of these clinics may be forced to close.


Interim Study Resolutions

Over 130 interim study resolutions (ISRs) were adopted by the Legislature; 39 of them are of interest to NHA members. Several of those ISRs, and the committee with jurisdiction, are listed below:

APPROPRIATIONS/HEALTH AND HUMAN SERVICES COMMITTEES

LR 155
Sponsor:
Sen. Tim Gay
A study to provide recommendations and examine issues relating to rates paid by the state to providers of publicly-funded behavioral health services.

LR 157
Sponsor:
Sen. Tim Gay
Review, assess and provide recommendations relating to the implementation of the Nebraska Health Care Funding Act.

LR 158
Sponsor:
Sen. Tim Gay
Research and provide recommendations for reform of Nebraska’s health care delivery system and health care financing system.

LR 209
Sponsor:
Sen. Danielle Nantkes
An examination of the implications of requiring communities to partner with the state in the delivery of health and human services previously provided by state employees.


BUSINESS AND LABOR COMMITTEE

LR 186
Sponsor:
Sen. Steve Lathrop
Study to examine trends in workers’ compensation insurance premiums, their causes and their effects.

LR 231
Sponsor:
Sen. Pete Pirsch
Explore ways the state could promote job creation in the more economically disadvantaged rural communities in Nebraska.


EDUCATION COMMITTEE

LR 172
Sponsor:
Sen. John Harms
Analyze the education and training available that could lead to careers in high-demand industries in Nebraska.

 

EXECUTIVE BOARD COMMITTEE

LR 96
Sponsor:
Sen. Rich Pahls
Examine the responsiveness of state agencies when they are requested to provide information to the Legislature.

 

HEALTH AND HUMAN SERVICES COMMITTEE

LR 150
Sponsor:
Sen. Kathy Campbell
Interim study to examine the Department of Health and Human Services’ plan to contract for delivery of Medicaid services using an at-risk capitated managed care model.

LR 156
Sponsor:
Sen. Tim Gay
Identify the statutory powers and duties of the Department of Health and Human Services and to prioritize the programs and services administered by the Department.

LR 159
Sponsor:
Sen. Tim Gay
Examine the future need for health care workers in Nebraska.

LR 160
Sponsor:
Sen. Tim Gay
Study to review and provide recommendations relating to the statewide telehealth network.

LR 179
Sponsor:
Sen. Gwen Howard
Examine the requirements and conditions of the state’s contract with Magellan Behavioral Health Services.

 

JUDICIARY COMMITTEE

LR 226
Sponsor:
Sen. Gwen Howard
Examine medical malpractice liability.

 

REVENUE COMMITTEE

LR 97
Sponsor:
Sen. Rich Pahls
Review the major sources of state and local tax revenue.

LR 161
Sponsor:
Sen. Abbie Cornett
Examine Nebraska’s sales and use tax provisions.

LR 166
Sponsor:
Sen. M.L. "Cap" Dierks
Conduct a comprehensive review of state and local taxes in Nebraska.

 


For more information about these or any other bills or resolutions, contact: Bruce Rieker, Vice President of Advocacy at (402) 742-8146 or brieker@nhanet.org.


The NHA staff thanks everyone who participated in the development of public policy during the 2009 legislative session. Your efforts of attending NHA meetings, participating in conference calls, and contacting policymakers to advocate a position on behalf of Nebraska’s hospitals are invaluable. Together we are the influential voice for health care.

Throughout the 2010 legislative session, hospitals will need “champions” in the Legislature to deal with Medicaid, workers’ compensation, behavioral health reform, and all other issues that impact the operations and success of hospitals. Hospitals must be prepared for discussions vital to the communities they serve and to the mission of hospitals across the state. For more information, contact the Nebraska Hospital Association at (402) 742-8140.
 


NHA Rotunda Review is published by the Nebraska Hospital Association, 3255 Salt Creek Circle, Suite 100, Lincoln, NE 68504. Phone 402/742-8140, Fax 402/742-8191. Contact Kelley Porter, Director of Communications, at 402/742-8151, or email, kporter@nhanet.org



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