Greetings Healthy Kids Action Network!

Last week on Thursday, May 27th, the House passed the Department of Community Health (DCH) budget. It will now go to a joint House/Senate conference committee where members from both the House and Senate will work out differences for a final budget to go to the Governor. We will keep you updated when conferees are named.

A full detailed analysis that includes the Governor's, Senate's, and House's DCH budget recommendations is now available by visiting our Budget Basics library. Below are some of the highlights.

Please do not hesitate to contact me if you have any questions.

Best,

Alicia S. Guevara
Policy & Outreach Associate

On Thursday, May 27, 2010, the House passed its version of the DCH budget.

The House DCH proposal comes in at $2.02 billion in state funds compared to the Senate's $1.92 billion and the Governor's proposed $2.01 billion. The House budget totals $13.7 billion while the Senate budget proposal is $13.57 and the Governor's $14.4 billion.

Health Prevention and Promotion Programs:

• Healthy Michigan Fund (HMF): The Governor and House slightly decrease funding by eliminating the Talk Early, Talk Often pregnancy prevention program ($39,000). The Senate reduced the HMF by $5 million and rolled up funds into one line-item, but inserted language requiring the DCH to prioritize programs that serve children, including poison control and the Michigan Care Improvement Registry (MCIR).
  
• Local Public Health Operations: The House maintains current funding levels while the Governor reduced funding by $2.7 million and the Senate limited the reduction to $1 million.
• 0 to 3 Secondary Prevention: The House inserts a placeholder for this program that was vetoed by the Governor in the fiscal year 2010 budget. The Senate did not take action on this program.
• Nurse Family Partnership: The House includes a placeholder for this program that was vetoed by the Governor in the fiscal year 2010 budget. The Senate did not take any action on this program.
• Stillbirth Awareness: The House includes funding ($50,000) for public and provider awareness and education about stillbirth. Neither the Governor or Senate included this provision.
• Foster Grandparent Volunteer Program: The House maintains current level funding while the Governor and Senate reduced funding by $194,000.
• Obstetrical and Gynecological Services: The House also includes new language that would require the DCH to identify counties in which there are an insufficient number of health professionals providing obstetrical and gynecological services and identify policy and/or fiscal measures considered necessary to address the shortage.

Medicaid and MIChild Services:

• Medicaid Coverage for 19- and 20-year olds and Caretaker Relatives: The House does not recommend elimination of coverage for these groups as was included in the Senate budget. New federal health care reform maintenance of effort requirements prohibit such action.
• Express Lane Enrollment: The House includes new language that would require the DCH to automatically enroll a child in MIChild if the child meets the income criteria for free breakfast, lunch or milk under the National School Lunch Act.
• MIChild Mental Health Rates: The House includes new language that would require the DCH to redetermine MIChild mental health rates based on the most recent encounter data and pay CMHSPs rates sufficient to cover the cost of providing care.
• Arthur Hill & Mumford Adolescent Health Clinics: The House agrees with the Governor to eliminate funding for these school-based health centers. The Senate maintained current funding levels ($154,500 state funds and $575,100 total).
• Transfer of MIChild Responsibilities: The House rejects the Senates proposal to transfer MIChild responsiblities from Blue Cross Blue Shield to Medicaid HMOs.
• Provider Rates: The House does not propose any further reductions to provider reimbursement rates--the Senate made reductions to rates with exceptions to pediatrics, well child visits, obstetrics, primary care, and emergency services. Both the House and Senate reject the Governor's proposal to implement a physician quality assurance assessment program (QAAP). The Governor proposed rate cuts if a physician QAAP was not implemented.

Mental Health:

• Child Care Enhancement Program (CCEP): The House maintains this early childhood program at current funding levels ($1 million). The Governor and Senate both recommended its elimination.
• Non-Medicaid Community Mental Health: The House agrees with the Governor's recommendation to reduce administrative funds by $3.8 million. In addition to the $3.8 million cut, the Senate recommended a cut of $54 million for a total reduction of $57.5 million.
• Multicultural Services: The House agrees with the Senate to change the name to "Mental Health Services for Special Populations," but does not agree with additional funding to the Chaldean Chamber Foundation. The Governor cut funding by $1.3 million, which is a 20% reduction to current levels.

Children's Special Health Care Services:

1. Human Growth Hormone and Genetics Counseling Testing (Title V Eligibles): The House maintains funding for both services. The Governor and Senate recommended elimination.
2. Non-Emergency Transportation and Diaper and Incontinent Supplies (Title V Eligibles): The House restores funding for these services, which were eliminated in the fiscal year 2010 budget. The Governor and Senate did not take action on these services.
3. Healthy Kids Application: The House proposes new language that would require the DCH to request that families complete a Healthy Kids application if DCH determines that a CSHCS enrollee is likely to qualify for Medicaid or MIChild. If the application is not completed within three months, the enrollee will be ineligible for participation in the CSHCS program.

The budget will now go to a joint House/Senate conference committee to work out the differences between the proposals.

Please visit our Budget Basics library for a full analysis of the proposal.