Senate Concurrent Resolution 655 - which would allow a new bill to be drafted past the deadline - was amended by the House recently to include statute sections that could implement proposed tobacco and alcohol tax increases to fund the Medicaid program.
The measure, which required a two-thirds vote because bill deadlines have passed, was approved with 81 representatives in favor and 38 against.
On April 10, the Senate Public Health Committee brought forward S.B. 3212 for discussion. An amendment proposed by Senator Terry Burton removed all hospital protections from the proposed legislation.
Senator Burton’s amendment replaced the language requiring the submission of state plan amendment to the hospital advisory board and substituted the words "demonstration project." According to federal guidelines, a demonstration project does not require approval of a new state plan amendment. This new language effectively gives the Division of Medicaid authority (through a demonstration project) to change or alter hospital reimbursement rates without the further approval of the hospital advisory board or the legislature.
The Senate Public Health Committee passed the bill which now goes to the Senate Appropriations Committee. Since the amendment by Senator Bryan, Senator Burton, and the Senate Public Health Committee removes all hospital protections from this bill, we are recommending that you contact your senator immediately and ask them NOT to support SB 3212 as it presents a clear and imminent danger to the stability of your hospital’s financial status.
Cigarette and alcohol taxes could become part of the discussion as Mississippi legislators look for a way to shore up the Medicaid budget. The House voted April 4 to add the so-called "sin taxes" to the list of possible ways to bring in revenue. The funding options were added to SC 655.
The Mississippi Senate voted on April 3 to allow the filing of a Medicaid bill that backers say is expected to solve a large part of the agency's funding problem. The chamber passed a resolution, Senate Concurrent Resolution 655, that will let a bill be introduced past the legislative filing deadline. The House must also pass the resolution.
Medicaid is facing a nearly $100 million shortfall this fiscal year. The program will need at least an extra $168 million next fiscal year, Medicaid Executive Director Robert L. Robinson told lawmakers last fall. House Medicaid Committee Chairman Dirk Dedeaux said it will need more than $250 million for fiscal year 2009, which begins July 1.
The Mississippi Hospital Association has been working with legislators, the Governor's Office and the Division of Medicaid for a solution amenable to all parties. Senate Public Health Committee Chairman Hob Bryan, D-Amory, said the bill he wants to draft will be based MHA's proposal.
Dedeaux said the House's plan for the cigarette tax, which was not taken up for consideration in the Senate, "is still on the table." It would create a continuous revenue stream for Medicaid. Dedeaux said a vote could be taken to suspend the rules to the tax, as well.
The last day of the 2008 session is April 19.
If HB 1013 dies in a Senate committee on March 18 (the deadline), many believe a special session will have to be called to deal with a $90 million shortfall Medicaid is facing.
"My position, the Senate's position and everybody's position over here has been that we want to see what proposal comes from the hospitals about how to produce the $90 million ... they have always produced historically," Senate Public Health and Welfare Committee Chairman Hob Bryan, D-Amory, said according to Leah Rupp in the Clarion-Ledger. "So far, they have not been able to come up with that answer."
Senate Bill 2904 had code sections that could have included a hospital tax, but the House chamber passed it without the provision.
H.B. 1013 has been referred to the Senate Public Health & Welfare and Finance Committees. March 18 is the deadline for these committees to vote on bills originating from other chambers - which applies to H.B. 1013.
The measure contains a $1.00 cigarette tax increase that would raise $174 million in new revenue. These additional resources will be used to fund Medicaid and the state's trauma care system.
Attached below is the roll call for HB 1405. This is a funding bill calling for various fee increases to pay for Mississippi's underfunded trauma care system. The bill passed the House by a vote of 97-24.
The bill would raise the fees for traffic violations, driver's license renewals and gun permit renewals. The bill also places a fee of $20 for the first time on the registration of all-terrain vehicles and motorcycles.
The state provides $8 million to compensate the Mississippi hospitals that participate in the trauma care system. House Public Health and Welfarce Committee Chairman Steve Holland said those state funds cover only 18 cents of each $1 spent on uncompensated trauma care.
If you were not able to make it to the Capitol last week during the debate of HB 1013, we have video of some of the remarks before the vote available here. We are working towards bringing more videos to our members to enhance our advocacy and communication efforts. If you have suggestions on what you would like to see, contact Shawn Lea at (800) 289-8884, (601) 368-3237 or slea@mhanet.org.
HB 1013, which offers a $1 tobacco tax to fund Medicaid (at 90%) and the state's trauma care program (at 10%), passed the House this afternoon. The roll call vote is attached below in Acrobat format.
As deadlines near we need your support on several issues this week:
