Financing Center of Excellence | SAMHSA | SAMHSA's Weekly Financing News Pulse: National Edition- March 18, 2011

SAMHSA222s Weekly Financing News Pulse: National Edition March 18, 2011 3/18/11 1 SAMHSA222s Weekly Financing News Pulse: National Edition National News Court of Appeals to Expedite Multi- State Health Reform Suit; Obama Administration Proposes Rules Governing State Innovation Waivers Sen. Whitehouse Introduces Bill to Make Behavioral Health Providers Eligible for EHR Incentives CMS Proposes Rule Authorizing States to Data Mine Medicaid Claims to Combat Fraud Update: Congress Approves Short - Term CR, Maintains Funding for Health Reform Studies Released MACPAC Finds Medicaid Financed 25 Percent of Behavioral Health T reatment in 2010 CBO Examines Deficit Reduction Options, Including Health Care Cuts MedPAC Suggests Increasing Medicare Provider Reimbursements Health Affairs Publishes RWJF Brief Examining Health Reform222s Employer Insurance Mandate Commonwealth Fund Examines the Recession222s Effect on Health Coverage, Projects Health Reform222s Impact on Uninsured Around the Hill: Hearings on Health Fina ncing To Subscribe to SAMHSA222s Weekly Financing News Pulse, please go to the following link and choose 223Health Care Financing224: https://service.govdelivery.com/service/multi_subscribe.html?code=USSAMHSA&origin=http://www.samhs a.go v/enetwork/success.aspx For questions or comments, please contact Rasheda Parks ( Rasheda.Parks@samhsa.hhs.gov ). SAMHSA222s Weekly Financing News Pulse: National Edition M arch 18, 2011 3/18/11 2 National News Court of Appeals to Expedit e Multi -State Health Reform Suit; Obama Administration Proposes Rules Governing State Innovation Waivers : On March 11, the 11th U.S. Circuit Court of Appeals in Atlanta, Georgia agreed to expedite the multistate lawsuit challenging the national health care reform law . Now under appeal by the Obama Administration, in the original suit , U .S. District Court Judge Roger Vinson ruled that the individual insurance mandate is unconstitutional . The U.S. Department of Justice (DOJ) has until April 4 to file its brief in the appellate case ( The Atlanta Journal - Constitution, 3/15 ). In re lated news, on March 15, Acting Solicitor General Neal Katyal filed a brief with the U.S. Supreme Court , arguing that the court should not bypass the formal appellate process to hear Virginia Attorney General Ken Cuccinelli222s (R) health reform lawsuit. Attorney General Cuccinelli has requested that the Supreme Court hear the case immediately , rather than allowing the case to go through the lower courts . In the original case, U.S. District Court Judge Henry Hudson ruled that health reform222s individual mand ate is unconstitutional ( The Hill, 3/15 ; Kaiser Health News, 3/16 ; Kaiser Health New s, 3/15 ). Finally, o n March 10, the Obama Administration proposed rules to implement the national health care reform law222s state innovation waiver program . Beginning in 2017, health re form allows the U.S. Department of Health and Human Services (HHS) to grant waivers exempting states from select provisions of the law, including the individual insurance mandate and health plan minimum benefit requirements . To qualify for waivers , states must establish an alternative plan that insures as many individuals as the original law , without increasing the federal defici t ( Kaiser Health News, 3/ 11 ; Modern Healthcare, 3/10 ). Sen. Whitehouse Introduces Bill to Make Behavioral Health Providers Eligible for EHR Incentives : On March 10, Sen. Sheldon Whitehouse (D - RI) introduced legislation ( S. 359 ) that would make behavioral health providers and facilities eligible for incentive payments under the Medicaid and Medicare electronic health record (EHR) incentive payment program. The American Recovery and Reinvest ment Act222s (ARRA) Health Information Technology for Economical and Clinical Health (HITECH) Act offers ince n tive payments to hospitals and providers that demonstrate 223meaningful use224 of EHRs within the Medicaid and Medicare programs, as established by the U.S. Department of Health and Human Services (HHS) . Currently, psychiatrists are eligible for the incentives but other behavioral health professionals and facilities are not . The new bill would allow licensed psychologists and clinical social workers to receive incentive payments through Medicare and Medicaid. It would also expand the Medicaid incentive program to include community mental health centers, mental health treatment centers, psychiatric hospitals, and clinics offering substance abuse treatmen t. In addition, the bill would offer Medicare incentive payments to inpatient psychiatric hospitals. The bill is now before the Senate Finance Committee ( iHealthBeat, 3/16 ). CMS Proposes Rule Authorizing States to Data Mine Medicaid Claims to Combat Fraud : O n March 17, the Centers for Medicare & Medicaid Services (CMS) published a proposed rule , expanding states222 Medicaid fraud detection authority by allowing t hem to data mine Medicaid claims information . Citing the success of data mining in the Medicare program, CMS officials suggest that data mining will enable states to detect fraud earlier than existing methods . CMS is accepting comment on the proposed rule for 60 days ( Gov Info Security , 3/16 ). Update: Congress Approves Short -Term CR, Maintains Funding for Health Reform : On March 17 , the U.S. Senate approved a short - term continuing resolution (CR) ( H.J. Res. 48 ) to fund the federal government through April 8. Approved by the U.S. House two days earlier, the CR cuts federal spending SAMHSA222s Weekly Financing News Pulse: National Edition M arch 18, 2011 3/18/11 4 possibility that Congress will repeal the measure, examining current legislation ( S. 20 ) as well as other potential changes ( Kaiser Health News, 3/11 ). C ommonwealth Fund Examines the Recession222s Effect on Health Coverage, Projects Health Reform222s Impact on Uninsured : On March 16, the Commonwealth Fund r eleased a report examining the 2007 - 2009 economic recession 222s effect on health cove rage. Using data from the Commonwealth Biennial Health Insurance Survey , the report found that 57 percent of non- elderly adults became uninsured after losing a job t hat offered health coverage . Only 25 percent of those who lost employer - sponsored coverage were able to obtain other coverage, with 14 percent continuing coverage thro ugh COBRA. The report suggests that nearly all of the 52 million individuals who were without health coverage in 2010 will have coverage after the national health care reform law is fully implemented in 2014, most with subsidized premiums and reduced cost sharing ( The Commonwealth Fund, 3/16 ; Kaiser Health News, 3/16 ). Around the Hill: Hearings on Health Financing Congress is in recess. The Senate will reconvene Monday, March 28. The House will reconvene Tuesday, March 29. House Armed Services Subcommittee on Military Personnel: Military Health System Cost Efficiencies Overview March 15, 10:00 a.m. 2212 Rayburn House Ways and Means Subcommittee on Health: Medicare Payment Policies and MedPac Report March 15, 1:00 p.m. 1100 Longworth House Oversight and Government Reform Subcommittee on Health Care, District of Columbia, Census and the National Archives: Health Care Waiver Issues March 15, 1:30 p.m. 2247 Rayburn Senate Budget Committee: Debt Reduction Task Force Report March 15, 10:00 a.m. 608 Dirksen Senate Finance Committee: Health Care Overhaul After One Year March 16, 10:00 a.m. 215 Dirksen House Budget Committee: Health and Retirement Security March 17, 10:00 a.m. 210 Cannon Senate Health, Education, Labor and Pensions Committee: Health Care Overhaul After One Year March 17, 10:00 a.m. 430 Dirksen House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies: Health Care Overhaul Implementation April 1, 10:00 a.m. 2358-C Rayburn

SAMHSA222s Weekly Financing News Pulse: National Edition March 18, 2011 3/18/11 1 SAMHSA222s Weekly Financing News Pulse: National Edition National News Court of Appeals to Expedite Multi- State Health Reform Suit; Obama Administration Proposes Rules Governing State Innovation Waivers Sen. Whitehouse Introduces Bill to Make Behavioral Health Providers Eligible for EHR Incentives CMS Proposes Rule Authorizing States to Data Mine Medicaid Claims to Combat Fraud Update: Congress Approves Short - Term CR, Maintains Funding for Health Reform Studies Released MACPAC Finds Medicaid Financed 25 Percent of Behavioral Health T reatment in 2010 CBO Examines Deficit Reduction Options, Including Health Care Cuts MedPAC Suggests Increasing Medicare Provider Reimbursements Health Affairs Publishes RWJF Brief Examining Health Reform222s Employer Insurance Mandate Commonwealth Fund Examines the Recession222s Effect on Health Coverage, Projects Health Reform222s Impact on Uninsured Around the Hill: Hearings on Health Fina ncing To Subscribe to SAMHSA222s Weekly Financing News Pulse, please go to the following link and choose 223Health Care Financing224: https://service.govdelivery.com/service/multi_subscribe.html?code=USSAMHSA&origin=http://www.samhs a.go v/enetwork/success.aspx For questions or comments, please contact Rasheda Parks ( Rasheda.Parks@samhsa.hhs.gov ). SAMHSA222s Weekly Financing News Pulse: National Edition M arch 18, 2011 3/18/11 2 National News Court of Appeals to Expedit e Multi -State Health Reform Suit; Obama Administration Proposes Rules Governing State Innovation Waivers : On March 11, the 11th U.S. Circuit Court of Appeals in Atlanta, Georgia agreed to expedite the multistate lawsuit challenging the national health care reform law . Now under appeal by the Obama Administration, in the original suit , U .S. District Court Judge Roger Vinson ruled that the individual insurance mandate is unconstitutional . The U.S. Department of Justice (DOJ) has until April 4 to file its brief in the appellate case ( The Atlanta Journal - Constitution, 3/15 ). In re lated news, on March 15, Acting Solicitor General Neal Katyal filed a brief with the U.S. Supreme Court , arguing that the court should not bypass the formal appellate process to hear Virginia Attorney General Ken Cuccinelli222s (R) health reform lawsuit. Attorney General Cuccinelli has requested that the Supreme Court hear the case immediately , rather than allowing the case to go through the lower courts . In the original case, U.S. District Court Judge Henry Hudson ruled that health reform222s individual mand ate is unconstitutional ( The Hill, 3/15 ; Kaiser Health News, 3/16 ; Kaiser Health New s, 3/15 ). Finally, o n March 10, the Obama Administration proposed rules to implement the national health care reform law222s state innovation waiver program . Beginning in 2017, health re form allows the U.S. Department of Health and Human Services (HHS) to grant waivers exempting states from select provisions of the law, including the individual insurance mandate and health plan minimum benefit requirements . To qualify for waivers , states must establish an alternative plan that insures as many individuals as the original law , without increasing the federal defici t ( Kaiser Health News, 3/ 11 ; Modern Healthcare, 3/10 ). Sen. Whitehouse Introduces Bill to Make Behavioral Health Providers Eligible for EHR Incentives : On March 10, Sen. Sheldon Whitehouse (D - RI) introduced legislation ( ) that would mak e behavioral health providers and facilities eligible for incentive payments under the Medicaid and Medicare electronic health record (EHR) incentive payment program. The American Recovery and Reinvest ment Act222s (ARRA) Health Information Technology for Economical and Clinical Health (HITECH) Act offers ince n tive payments to hospitals and providers that demonstrate 223meaningful use224 of EHRs within the Medicaid and Medicare programs, as established by the U.S. Department of Health and Human Services (HHS) . Currently, psychiatrists are eligible for the incentives but other behavioral health professionals and facilities are not . The new bill would allow licensed psychologists and clinical social workers to receive incentive payments through Medicare and Medicaid. It would also expand the Medicaid incentive program to include community mental health centers, mental health treatment centers, psychiatric hospitals, and clinics offering substance abuse treatmen t. In addition, the bill would offer Medicare incentive payments to inpatient psychiatric hospitals. The bill is now before the Senate Finance Committee ( iHealthBeat, 3/16 ). CMS Proposes Rule Authorizing States to Data Mine Medicaid Claims to Combat Fraud : O n March 17, the Centers for Medicare & Medicaid Services (CMS) published a proposed rule , expanding states222 Medicaid fraud detection authority by allowing t hem to data mine Medicaid claims information . Citing the success of data mining in the Medicare program, CMS officials suggest that data mining will enable states to detect fraud earlier than existing methods . CMS is accepting comment on the proposed rule for 60 days ( Gov Info Security , 3/16 ). Update: Congress Approves Short -Term CR, Maintains Funding for Health Reform : On March 17 , the U.S. Senate approved a short - term continuing resolution (CR) ( H.J. Res. 48 ) to fund the federal government through April 8. Approved by the U.S. House two days earlier, the CR cuts federal spending SAMHSA222s Weekly Financing News Pulse: National Edition M arch 18, 2011 3/18/11 4 possibility that Congress will repeal the measure, examining current legislation ( S. 20 ) as well as other potential changes ( Kaiser Health News, 3/11 ). Commonwealth Fund Examines the Recession222s Effect on Health Coverage, Projects Health Reform222s Impact on Uninsured : On March 16, the Commonwealth Fund r eleased a report examining the 2007 - 2009 economic recession 222s effect on health cove rage. Using data from the Commonwealth Biennial Health Insurance Survey , the report found that 57 percent of non- elderly adults became uninsured after losing a job t hat offered health coverage . Only 25 percent of those who lost employer - sponsored coverage were able to obtain other coverage, with 14 percent continuing coverage thro ugh COBRA. The report suggests that nearly all of the 52 million individuals who were without health coverage in 2010 will have coverage after the national health care reform law is fully implemented in 2014, most with subsidized premiums and reduced cost sharing ( The Commonwealth Fund, 3/16 ; Kaiser Health News, 3/16 ). Around the Hill: Hearings on Health Financing Congress is in recess. The Senate will reconvene Monday, March 28. The House will reconvene Tuesday, March 29. House Armed Services Subcommittee on Military Personnel: Military Health System Cost Efficiencies Overview March 15, 10:00 a.m. 2212 Rayburn House Ways and Means Subcommittee on Health: Medicare Payment Policies and MedPac Report March 15, 1:00 p.m. 1100 Longworth House Oversight and Government Reform Subcommittee on Health Care, District of Columbia, Census and the National Archives: Health Care Waiver Issues March 15, 1:30 p.m. 2247 Rayburn Senate Budget Committee: Debt Reduction Task Force Report March 15, 10:00 a.m. 608 Dirksen Senate Finance Committee: Health Care Overhaul After One Year March 16, 10:00 a.m. 215 Dirksen House Budget Committee: Health and Retirement Security March 17, 10:00 a.m. 210 Cannon Senate Health, Education, Labor and Pensions Committee: Health Care Overhaul After One Year March 17, 10:00 a.m. 430 Dirksen House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies: Health Care Overhaul Implementation April 1, 10:00 a.m. 2358-C Rayburn

SAMHSA222s Weekly Financing News Pulse: National Edition March 18, 2011 3/18/11 1 SAMHSA222s Weekly Financing News Pulse: National Edition National News Court of Appeals to Expedite Multi -State Health Reform Suit; Obama Administration Proposes Rules Governing State Innovation Waivers Sen. Whitehouse Introduces Bill to Make Behavioral Health Providers Eligible for EHR Incentives CMS Proposes Rule Authorizing States to Data Mine Medicaid Claims to Combat Fraud Update: Congress Approves Short -Term CR, Maintains Funding for Health Reform Studies Released MACPAC Reports on Medicaid Spending CBO Examines Deficit Reduction Options, Including Health Care Cuts MedPAC Suggests Increasing Medicare Provider Reimbursements Health Affairs Publishes RWJF Brief Examining Health Reform222s Employer Insurance Mandate Commonwealth Fund Examines the Recession222s Effect on Health Coverage, Projects Health Reform222s Impact on Uninsured Around the Hill: Hearings on Health Fina ncing To Subscribe to SAMHSA222s Weekly Financing News Pulse, please go to the following link and choose 223Health Care Financing224: https://service.govdelivery.com/service/multi_subscribe.html?code=USSAMHSA&origin=http://www.samhsa.go v/enetwork/success.aspx For questions or comments, please contact Rasheda Parks ( Rasheda.Parks@samhsa.hhs.gov ). SAMHSA222s Weekly Financing News Pulse: National Edition M arch 18, 2011 3/18/11 2 National News Court of Appeals to Expedit e Multi - State Health Reform Suit; Obama Administration Proposes Rules Governing State Innovation Waivers : On March 11, the 11th U.S. Circuit Court of Appeals in Atlanta, Georgia agreed to expedite the multistate lawsuit challenging the national health care reform law. Now under appeal by the Obama Administration , in the original suit, U .S. District Court Judge Roger Vinson ruled that the individual insurance mandate is unconstitutional . The U.S. Department of Justice (DOJ) has until April 4 to file its brief in the appellate case ( The Atlanta Journal - Constitution, 3/15 ). In related news, on March 15, Acting Solicitor General Neal Katyal filed a brief with the U.S. Supreme Court , arguing that the court should not bypass the formal appellate process to hear Virginia Attorney General Ken Cuccinelli222s (R) health reform lawsuit. At torney General Cuccinelli has requested that the Supreme Court hear the case immediately , rather than allowing the case to go through the lower courts . In the original case, U.S. District Court Judge Henry Hudson ruled that health reform222s individual mandate is unconstitutional ( The Hill, 3/15 ; Kaiser Health News, 3/16 ; Kaiser Health New s, 3/15 ). Finally, o n March 10, the Obama Administration proposed rules to implement the national health care reform law222s state innovation waiver program . Beginning in 2017, health re form allows the U.S. Department of Health and Human Services (HHS) to grant waivers exempting states from select provisions of the law , including the individual insurance mandate and health plan minimum benefit requirements . To qualify for waivers , states must establish an alternative plan that insures as many individuals as the original law , without increasing the federal deficit ( Kaiser Health News, 3/ 11 ; Modern Healthcare, 3/10 ). Sen. Whitehouse Introduces Bill to Make Behavioral Health Providers Eligible for EHR Incentives : On March 10, Sen. Sheldon Whitehouse (D -RI) introduced legislation ( S. 359) that would make behavioral health providers and facilities eligible for incentive payments under the Medicaid and Medicare electronic health record (EHR) incentive payment program. The American Recovery and Reinvest ment Act222s (ARRA) Health Information Technology for Economical and Clinical Health (HITECH) Act offers ince ntive payments to hospitals and providers that demonstrate 223meaningful use224 of EHRs within the Medicaid and Medicare programs, as established by the U.S. Department of Health and Human Services (HHS) . Currently, psychiatrists are eligible for the incentives but other behavioral health professionals and facilities are not. The new bill would allow licensed psychologists and clinical social workers to receive incentive payments through Medicare and Medicaid . It would also expand the Medicaid incentive program to include community mental health centers, mental health treatment centers, psychiatric hospitals, and clinics offering substance abuse treatment. In addition, the bill would offer Medicare incentive payments to inpatient psychiatric hospitals. The bill is now before the Senate Finance Committee ( iHealthBeat, 3/16 ). CM S Proposes Rule Authorizing States to Data Mine Medicaid Claims to Combat Fraud: O n March 17, the Centers for Medicare & Medicaid Services (CMS) published a proposed rule , expanding states222 Medicaid fraud detection authority by allowing them to data mine Medicaid claims information. Citing the success of data mining in the Medicare progr am, CMS officials suggest that data mining will enable states to detect fraud earlier than existing methods. CMS is accepting comment on the proposed rule for 60 days ( Gov Info Security , 3/16 ). Update: Congress Approves Short - Term CR, Maintains Funding for Health Reform : On March 17 , the U.S. Senate approved a short - term continuing resolution (CR) ( H.J. Res. 48) to fund the federal government through April 8. Approved by the U.S. House two days earlier, t he CR cuts federal spending SAMHSA222s Weekly Financing News Pulse: National Edition M arch 18, 2011 3/18/11 4 possibility that Congress will repeal the measure, examining current legislation ( S. 20 ) as well as other potential changes ( Kaiser Health News, 3/11 ). Commonwealth Fund Examines the Recession 222s Effect on Health Coverage, Projects Health Reform222s Impact on Uninsured : On March 16, the Commonwealth Fund r eleased a report examining the 2007-2009 economic recession222s effect on health cove rage. Using data from the Commonwealth Biennial Health Insurance Survey , the report found that 57 percent of non-elderly adults became uninsured after losing a job t hat offered health coverage. Only 25 percent of those who lost employer - sponsored coverage were able to obtain other coverage, with 14 percent continuing coverage thro ugh COBRA. The report suggests that nearly all of the 52 million individuals who were without health coverage in 2010 will have coverage after the national health care reform law is fully implemented in 2014, most with subsidized premiums and reduced cost sharing ( The Commonwealth Fund, 3/16 ; Kaiser Health News, 3/16 ). Around the Hill: Hearings on Health Financing Congress is in recess. The Senate will reconvene Monday, March 28. The House will reconvene Tuesday, March 29. House Armed Services Subcommittee on Military Personnel: Military Health System Cost Efficiencies Overview March 15, 10:00 a.m. 2212 Rayburn House Ways and Means Subcommittee on Health: Medicare Payment Policies and MedPac Report March 15, 1:00 p.m. 1100 Longworth House Oversight and Government Reform Subcommittee on Health Care, District of Columbia, Census and the National Archives: Health Care Waiver Issues March 15, 1:30 p.m. 2247 Rayburn Senate Budget Committee: Debt Reduction Task Force Report March 15, 10:00 a.m. 608 Dirksen Senate Finance Committee: Health Care Overhaul After One Year March 16, 10:00 a.m. 215 Dirksen House Budget Committee: Health and Retirement Security March 17, 10:00 a.m. 210 Cannon Senate Health, Education, Labor and Pensions Committee: Health Care Overhaul After One Year March 17, 10:00 a.m. 430 Dirksen House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies: Health Care Overhaul Implementation April 1, 10:00 a.m. 2358-C Rayburn

SAMHSA's Weekly Financing News Pulse: National Edition- March 18, 2011

In this edition:

National News

Studies Released