FY 2000-01 COMMUNITY HEALTH BUDGET - S.B. 964 (P. A. 296 of 2000): ENACTED

FY 1999-2000 Year-to-Date Gross Appropriation $8,205,612,600
Changes from FY 1999-2000 Year-to-Date:
Conference Agreement on Items of Difference
1. Healthy Michigan Fund (HMF). The Conference Committee added a number of projects to current-year HMF programming. These included $1,000,000 for a lead rededication revolving fund, $2,000,000 for workaday wellness activities, $1,000,000 for supportive services for frail elderly, and $406,200 for a fish advisory. 4,855,000
2. Medicaid Base. The Conference Committee made a $51,246,500 adjustment to the Medicaid base for traditional Medicaid programming, added $4,593,800 for the Adult Home Help base, $4,500,000 to recognize Federal match for psychotropic medications, funding for which was moved to the Pharmaceutical Services line, and $16,011,000 as a base adjustment to the Children's Special Health Services program. 76,351,300
3. Qualified Health Plans (QHPs). The Conference Committee increased funding for QHPs by 11.7% to reflect the results of the re-bid for Medicaid managed care services. 139,683,700
4. Increases for Hospitals and Physicians. The Conference Committee included a 4% increase for inpatient services, a 7% increase for outpatient services, a 9% increase for physician services, and a new rural health initiative. 46,213,900
5. Other Medicaid Provider Increases. The Conference Committee increased long term care rates by 5.4% (with a $0.50/hour wage pass-through), increased auxiliary medical services rates by 5%, raised the pharmacy dispensing fee to $3.77, and increased rates for personal care services and home health by 4%. 58,428,900
6. Economic Adjustments. Economic Adjustments. The Conference Committee included funding to reflect the typical economic adjustments for salaries and wages, fringe benefits, rent, and workers' compensation. 27,267,900
7. Other Changes. Other changes adopted by the Conference Committee resulted in a slight increase in Gross funding. 5,964,600
Total Changes $358,765,300
FY 2000-01 Enacted Gross Appropriation $8,564,377,900


FY 2000-01 COMMUNITY HEALTH BUDGET - BOILERPLATE HIGHLIGHTS
Changes from FY 1999-2000 Year-to-Date:
Conference Agreement on Items of Difference
1. Continuous Prohibition. Continuous prohibition on competitive bid out of mental health services and requires carve out of specialty services. (Sec. 413)
2. Pyschotropic Medication. Community Mental Health Boards are not to be held liable for the cost of psychotropic medications. (Sec. 416)
3. Regional Partnerships. Encourages Community Mental Health Boards to form regional partnerships. (Sec. 417)
4. Clinton River Study. Provides for pollution study of the Clinton River. (Sec. 906)
5. Lead Hazard. Establishes lead hazard rededication revolving loan fund. (Sec. 907)
6. Other Programs. Use of Healthy Michigan Fund to increase support for a number of programs such as obesity prevention, stroke initiative, and children's arthritis program. (Secs. 1018, 1019, 1020)
7. Adolescent Health Care Services. Increase funding for adolescent health care services. (Sec. 1103)
8. Pharmacy Dispensing Fee. Increase pharmacy dispensing fee to $3.77. (Sec. 1603
9. Nursing Home Payments. Provides a 5.4% increase in nursing home payments, which includes a wage pass-through of up to $0.50 per hour. (Sec. 1618)
10. Department Allotments. Requires the Department to allot an amount for GME, including psychiatric residency programs, no less than was allotted in FY 1999-2000. (Secs. 1658, 1659)
11. Dental Fees. Increases dental fees, including services to adults by 5%, and personal care services rate by 4%. (Secs. 1696, 1700)
12. Economic Increases. Provides an economic increase in new funds of 7% for hospital outpatient services, 9% for physician services and requires that these fee screen be rebased. (Secs. 1701, 1702, 1703)
13. Other Language. Includes language that encourages health care providers to contract with QHP.'s. (Secs. 1705, 1706)

Date Completed: 08-14-00 - Fiscal Analyst: J. Walker

- S. Angelotti

D. Patterson