Saturday 11 August 2012

special fund cost of at least $30 million to DMHC and CDI.

CALIFORNIA: The Appropriations committees of both houses are wading through many bills that would have varying impacts on state finances.  Bills meeting certain dollar thresholds are sent to "suspense" filing for consideration at later hearings.  Most of the legislation that Aetna and other allies have opposed has been sent to the "suspense" filing, including a bill on rate regulation and all bills on benefit mandates, because of the fiscal impact of each bill and potential conflicts with federal guidance on essential benefits. These bills may be revived at a later date, or they may be held by the committees.  We expect the majority of the bills to be voted off the suspense file by the end of the month, including.

Rate regulation - According to Appropriations, there would be an annual fee-supported special fund cost of at least $30 million to DMHC and CDI.
Rate regulation - According to Appropriations, there would be an annual fee-supported special fund cost of at least $30 million to DMHC and CDI.
Autism mandate - According to the committee analysis, this bill would result in annual costs to the following state entities:
CalPERS: $9 million
Medi-Cal, for enrollees in managed care plans: $114 million
MRMIB plans (Healthy Families, AIM, MRMIP): $37 million

In state budget news, the governor will release his May revision to the state budget next week, taking into account new revenue figures that show the state taking in more than $2 billion in unanticipated new tax dollars. The governor still believes that asking voters to extend the higher tax rates set to expire this summer is the right thing to do because the higher revenue forecasts would not close the entire budget shortfall.  Republicans, however, have been quick to argue that higher revenue forecasts mean that extending tax rates is not needed at this time.

CONNECTICUT: The legislative session adjourns June 8, but the legislature has yet to reach a conclusion on several major issues, including an exchange bill, a rate review bill and the SustiNet bill.  Although the SustiNet compromise bill language is not public, the Administration and press reports have said that the bill does not include a public option but would create an advisory board on health reform implementation and examination of future state reforms. In addition, an anti-most favored nation clause bill has passed the House and now goes to the Senate for its consideration. Aetna supported the bill with amendments. The bill is expected to pass. Additionally, the recently released HHS rate review rule may push legislators to advocate for adoption of the federal 10 percent trigger for rate review in Connecticut, just in case the federal law is repealed.

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