2002 Yellow Book |
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DEPARTMENT OF HEALTH |
Adjusted Executive Appropriation Request Percent 2001-02 2002-03 Change Change AGENCY SUMMARY General Fund 7,177,038,600 6,961,009,000 (216,029,600) -3.01% Special Rev.-Fed. 21,523,732,00022,968,192,0001,444,460,000 6.71% Special Rev.-Other 2,202,495,900 3,629,898,0001,427,402,100 64.81% Fiduciary 3,965,000 4,125,000 160,000 4.04% Enterprise 10,000 10,000 0 0.00% Capital Projects Fund 11,600,000 11,600,000 0 0.00% Capital Projects Fund-1996 CWA (Bondable) 50,000,000 70,000,000 20,000,000 40.00% Federal Capital Projects Fund 53,659,000 75,000,000 21,341,000 39.77% Total for Agency: 31,022,500,50033,719,834,0002,697,333,500 8.69% Total Contingency: 850,000,000 963,500,000 113,500,000 13.35% Total for AGENCY SUMMARY: 31,872,500,50034,683,334,0002,810,833,500 8.82% STATE OPERATIONS General Fund 203,858,600 195,954,000 (7,904,600) -3.88% Special Rev.-Fed. 3,404,828,000 3,901,179,000 496,351,000 14.58% Special Rev.-Other 347,062,900 389,734,000 42,671,100 12.29% Fiduciary 3,965,000 4,125,000 160,000 4.04% Enterprise 10,000 10,000 0 0.00% Total for STATE OPERATIONS:3,959,724,500 4,491,002,000 531,277,500 13.42% Administration and Executive Direction General Fund 14,056,200 22,365,000 8,308,800 59.11% Special Rev.-Fed. 12,839,000 10,473,000 (2,366,000) -18.43% Special Rev.-Other 26,209,000 29,389,000 3,180,000 12.13% Total for Program: 53,104,200 62,227,000 9,122,800 17.18% AIDS Institute General Fund 16,851,000 16,818,000 (33,000) -0.20% Special Rev.-Other 2,136,000 0 (2,136,000)-100.00% Total for Program: 18,987,000 16,818,000 (2,169,000) -11.42% Environmental Health General Fund 10,059,000 9,987,000 (72,000) -0.72% Special Rev.-Fed. 11,105,000 12,670,000 1,565,000 14.09% Special Rev.-Other 14,270,000 15,999,000 1,729,000 12.12% Total for Program: 35,434,000 38,656,000 3,222,000 9.09% Community Health General Fund 9,670,000 9,852,000 182,000 1.88% Special Rev.-Fed. 98,268,000 102,151,000 3,883,000 3.95% Special Rev.-Other 5,554,000 5,554,000 0 0.00% Fiduciary 1,000,000 1,200,000 200,000 20.00% Total for Program: 114,492,000 118,757,000 4,265,000 3.73% Laboratories and Research General Fund 35,252,000 36,434,000 1,182,000 3.35% Special Rev.-Fed. 7,932,000 9,124,000 1,192,000 15.03% Special Rev.-Other 29,234,900 28,795,000 (439,900) -1.50% Fiduciary 2,600,000 2,600,000 0 0.00% Total for Program: 75,018,900 76,953,000 1,934,100 2.58% Managed Care General Fund 15,297,000 15,416,000 119,000 0.78% Total for Program: 15,297,000 15,416,000 119,000 0.78% Health Care Standards and Surveillance General Fund 30,319,000 25,620,000 (4,699,000) -15.50% Special Rev.-Other 42,860,000 48,044,000 5,184,000 12.10% Total for Program: 73,179,000 73,664,000 485,000 0.66% Health Care Financing General Fund 5,575,000 5,116,000 (459,000) -8.23% Special Rev.-Other 5,945,000 6,915,000 970,000 16.32% Total for Program: 11,520,000 12,031,000 511,000 4.44% Institution Management Special Rev.-Other 104,960,000 112,890,000 7,930,000 7.56% Fiduciary 325,000 325,000 0 0.00% Enterprise 10,000 10,000 0 0.00% Total for Program: 105,295,000 113,225,000 7,930,000 7.53% Medicaid Management Information System General Fund 48,676,000 55,275,000 6,599,000 13.56% Special Rev.-Fed. 67,510,000 67,510,000 0 0.00% Total for Program: 116,186,000 122,785,000 6,599,000 5.68% Elderly Pharmaceutical Insurance Coverage General Fund 11,039,000 0 (11,039,000)-100.00% Special Rev.-Other 0 15,447,000 15,447,000 -- Total for Program: 11,039,000 15,447,000 4,408,000 39.93% Office of Medicaid Audit and Fraud Prevention General Fund 18,665,000 18,591,000 (74,000) -0.40% Special Rev.-Fed. 36,278,000 37,856,000 1,578,000 4.35% Special Rev.-Other 14,500,000 14,500,000 0 0.00% Total for Program: 69,443,000 70,947,000 1,504,000 2.17% Office of Continuing Care General Fund 20,654,000 22,095,000 1,441,000 6.98% Special Rev.-Fed. 13,116,000 13,055,000 (61,000) -0.47% Special Rev.-Other 3,626,000 3,893,000 267,000 7.36% Fiduciary 40,000 0 (40,000)-100.00% Total for Program: 37,436,000 39,043,000 1,607,000 4.29% Child Health Insurance Special Rev.-Fed. 30,280,000 28,340,000 (1,940,000) -6.41% Special Rev.-Other 11,680,000 11,920,000 240,000 2.05% Total for Program: 41,960,000 40,260,000 (1,700,000) -4.05% Maintenance Undistributed General Fund (78,338,000) (88,638,000) (10,300,000) 13.15% Special Rev.-Other 78,338,000 88,638,000 10,300,000 13.15% Total for Program: 0 0 0 -- Office of Medicaid Management General Fund 46,083,400 47,023,000 939,600 2.04% Special Rev.-Fed. 3,127,500,000 3,620,000,000 492,500,000 15.75% Special Rev.-Other 7,750,000 7,750,000 0 0.00% Total for Program: 3,181,333,400 3,674,773,000 493,439,600 15.51% AID TO LOCALITIES General Fund 6,973,180,000 6,765,055,000 (208,125,000) -2.98% Special Rev.-Fed. 18,118,904,00019,067,013,000 948,109,000 5.23% Special Rev.-Other 1,855,433,000 3,240,164,0001,384,731,000 74.63% Total for AID TO LOCALITIES:26,947,517,00029,072,232,0002,124,715,000 7.88% Administration and Executive Direction General Fund 869,000 869,000 0 0.00% Total for Program: 869,000 869,000 0 0.00% AIDS Institute General Fund 53,656,000 0 (53,656,000)-100.00% Special Rev.-Other 34,597,000 88,253,000 53,656,000 155.09% Total for Program: 88,253,000 88,253,000 0 0.00% Environmental Health General Fund 1,500,000 0 (1,500,000)-100.00% Special Rev.-Fed. 2,208,000 2,540,000 332,000 15.04% Special Rev.-Other 200,000 6,200,000 6,000,000 3000.00% Total for Program: 3,908,000 8,740,000 4,832,000 123.64% Community Health General Fund 526,588,000 484,451,000 (42,137,000) -8.00% Special Rev.-Fed. 574,806,000 605,193,000 30,387,000 5.29% Special Rev.-Other 36,578,000 58,823,000 22,245,000 60.82% Total for Program: 1,137,972,000 1,148,467,000 10,495,000 0.92% Laboratories and Research General Fund 1,071,000 1,071,000 0 0.00% Special Rev.-Fed. 2,105,000 2,420,000 315,000 14.96% Total for Program: 3,176,000 3,491,000 315,000 9.92% Health Care Standards and Surveillance General Fund 9,535,000 9,185,000 (350,000) -3.67% Total for Program: 9,535,000 9,185,000 (350,000) -3.67% Medical Assistance General Fund 6,134,300,000 6,156,000,000 21,700,000 0.35% Special Rev.-Fed. 16,424,000,00017,054,000,000 630,000,000 3.84% Special Rev.-Other 1,231,400,000 2,124,700,000 893,300,000 72.54% Total for Program: 23,789,700,00025,334,700,0001,545,000,000 6.49% Medical Assistance Administration General Fund 108,557,000 114,350,000 5,793,000 5.34% Special Rev.-Fed. 388,750,000 481,800,000 93,050,000 23.94% Total for Program: 497,307,000 596,150,000 98,843,000 19.88% Elderly Pharmaceutical Insurance Coverage General Fund 401,100,000 0 (401,100,000)-100.00% Special Rev.-Other 0 484,900,000 484,900,000 -- Total for Program: 401,100,000 484,900,000 83,800,000 20.89% Office of Continuing Care General Fund 2,546,000 621,000 (1,925,000) -75.61% Special Rev.-Fed. 315,000 0 (315,000)-100.00% Total for Program: 2,861,000 621,000 (2,240,000) -78.29% Child Health Insurance Special Rev.-Fed. 726,720,000 921,060,000 194,340,000 26.74% Special Rev.-Other 280,320,000 470,000,000 189,680,000 67.67% Total for Program: 1,007,040,000 1,391,060,000 384,020,000 38.13% Maintenance Undistributed General Fund (272,338,000) (7,288,000) 265,050,000 -97.32% Special Rev.-Other 272,338,000 7,288,000 (265,050,000) -97.32% Total for Program: 0 0 0 -- Office of Medicaid Management General Fund 5,796,000 5,796,000 0 0.00% Total for Program: 5,796,000 5,796,000 0 0.00% CAPITAL PROJECTS Capital Projects Fund 11,600,000 11,600,000 0 0.00% Capital Projects Fund-1996 CWA (Bondable) 50,000,000 70,000,000 20,000,000 40.00% Federal Capital Projects Fund 53,659,000 75,000,000 21,341,000 39.77% Total for CAPITAL PROJECTS: 115,259,000 156,600,000 41,341,000 35.87% Laboratories and Research Capital Projects Fund 4,000,000 4,000,000 0 0.00% Total for Program: 4,000,000 4,000,000 0 0.00% Water Resources Federal Capital Projects Fund 53,659,000 75,000,000 21,341,000 39.77% Total for Program: 53,659,000 75,000,000 21,341,000 39.77% Safe Drinking Water - Clean Water/Clean Air 96 Capital Projects Fund-1996 CWA (Bondable) 50,000,000 70,000,000 20,000,000 40.00% Total for Program: 50,000,000 70,000,000 20,000,000 40.00% Preservation of Facilities Purpose Capital Projects Fund 7,600,000 7,600,000 0 0.00% Total for Program: 7,600,000 7,600,000 0 0.00% CONTINGENCY General Fund 0 13,500,000 13,500,000 -- Fiduciary 850,000,000 950,000,000 100,000,000 11.76% Total for CONTINGENCY: 850,000,000 963,500,000 113,500,000 13.35% Laboratories and Research General Fund 0 13,500,000 13,500,000 -- Total for Program: 0 13,500,000 13,500,000 -- Medical Assistance Fiduciary 850,000,000 950,000,000 100,000,000 11.76% Total for Program: 850,000,000 950,000,000 100,000,000 11.76% ALL FUNDS PERSONNEL BUDGETED FILL LEVELS Current Requested Program 2001-02 2002-03 Change Suballocation 12 12 0 Administration and Executive Direction 494 480 (14) AIDS Institute 214 190 (24) Environmental Health 423 406 (17) Community Health 651 649 (2) Laboratories and Research 658 674 16 Managed Care 169 162 (7) Health Care Standards and Surveillance 541 492 (49) Health Care Financing 129 127 (2) Institution Management 1,516 1,552 36 Elderly Pharmaceutical Insurance Coverage 28 28 0 Office of Medicaid Audit and Fraud Prevention 509 500 (9) Office of Continuing Care 373 366 (7) Child Health Insurance 42 41 (1) Office of Medicaid Management 402 394 (8) Total General Fund : 2,525 2,418 (107) Total All Other Funds : 3,636 3,655 19 TOTAL: 6,161 6,073 (88) BUDGET HIGHLIGHTS (Executive Budget: pp. 121-132) As the designated State agency responsible for promoting and supervising public health activities, ensuring sound and cost effective quality medical care, and reducing infectious diseases, the Department of Health (DOH) works towards its goal of ensuring the highest quality, most appropriate and cost-effective health care for all New Yorkers. Since State Fiscal Year (SFY) 1996-97, when authority for the State's Medical Assistance (Medicaid) Program was transferred from the former Department of Social Services, the Department of Health has also served as the principal State agency responsible for interacting with the Federal and local governments, health care providers, and program participants on behalf of the Medicaid Program in New York. Transfer of all Medicaid functions to the Department of Health consolidated for the first time in one agency the operational and oversight responsibilities for the Medicaid Program, thereby clarifying State accountability for Medicaid policy and allowing for greater efficiencies in the administration of health care programs. This Agency is included in the Health, Mental Hygiene and Environmental Conservation appropriation bill. The Governor recommends All Funds appropriations for the Department of Health totaling $34,683,334,000, an increase of $2,810,833,500, or 8.82 percent, over State Fiscal Year (SFY) 2001-02, primarily attributable to an increase in both Special Revenue Fund Federal and Special Revenue Fund Other. The Governor recommends General Fund appropriations for the Agency totaling $6,961,009,000, a decrease of $216,029,600, or three percent below the current fiscal year. Additionally, the Governor recommends Special Revenue Funds Federal appropriations for the Agency totaling $22,968,192,000, an increase of $1,444,460,000, or 6.7 percent over last year. The Executive further recommends Special Revenue Fund Other of $3,629,898,000, an increase of $1,427,402,100, or 64.8 percent, primarily due to a shift from General Fund spending. The adjusted appropriation for the Department of Health includes recommended deficiency appropriations for the General Fund in Aid to Localities totaling $471,800,000. The proposal allocation of those funds is as follows: the Medicaid Program, $179,600,000; the Early Intervention (EI) Program, $70,000,000; the Elderly Pharmaceutical Insurance Coverage (EPIC) Program, $40,700,000; the General Public Health Works Program, $48,900,000; the West Nile Encephalitis Outbreak, $21,900,000; the Immunization Program, $3,700,000; and $107,000,000 for the HCRA Transfer Fund/Medical Assistance Account to offset Medicaid General Fund spending. The Executive proposes to sweep $31,500,000 from various Special Revenue Other (SRO) accounts within the agency to offset General Fund spending in SFY 2002-03. Specifically, the Executive proposes to sweep: -- $9,000,000 from the Emergency Medical Services (EMS) Account; -- $3,000,000 from the Professional Medical Conduct Account; -- $1,000,000 from the Environmental Laboratory Reference and Accreditation Program (E-LAP); -- $13,500,000 from the Spinal Cord Injury Research Fund; and -- $5,000,000 from the Occupational Health Clinics Account. Other actions proposed by the Executive that would further offset General Fund spending throughout the agency include: -- a $4,000,000 General Fund offset related to an increase in the Article 28 Mortgage Loan Fee, from .2 percent to .3 percent. This fee increase would be changed administratively; and -- a $6,000,000 General Fund offset realized by exceeding the recoupment target in the Quality of Care Account. State Operations The Executive recommends a total All Funds appropriation for State Operations of $4,491,002,000, which reflects an increase of $531,277,500, or 13.4 percent over SFY 2001-02. This increase is primarily due to increased Federal funds. The Executive proposes General Fund State Operations appropriations totaling $195,954,000, a net decrease of $7,904,600, or 3.9 percent. The Executive also recommends Special Revenue Funds Federal totaling $3,901,179,000, an increase of $496,351,000, or 14.6 percent. The Executive proposes the attrition of 50 positions throughout the agency in SFY 2002-03, which would generate a General Fund savings of $1,500,000. The Executive also proposes to shift the funding of 10 positions from the General Fund to the Health Care Reform Act of 2000 (HCRA 2000) to generate savings of $647,000. In addition, the Executive proposes to adopt stringent turnover requirements, which would generate an additional $1,500,000 in General Fund savings. The Executive further proposes to combine the AIDS newborn screening program with the genetic newborn screening program in the Wadsworth Center for Laboratories and Research. The $5,000,000 proposed for this initiative is deemed by the Executive to be sufficient to meet the full spending needs of both programs. Of the $5,000,000, $1,800,000 is associated with costs related to the AIDS newborn screening program and $3,200,000 is associated with costs related to the genetic screening program. Other notable changes proposed by the Executive in State Operations include: -- a new $3,000,000 General Fund increase in the Administration and Executive Direction Program related to a time and activity system; -- a new $1,300,000 Maintenance Undistributed appropriation in the Statewide Planning and Research Cooperative System (SPARCS) for compliance with Federal data security standards; and -- a new $150,000 Maintenance Undistributed appropriation in the Center for Environmental Health Program, to be suballocated to the Department of Agriculture and Markets, for the protection of drinking water supplies. Institutional Management As part of the major health care package (S.6084/A.9610) passed in January 2002, the Roswell Park Cancer Institute will receive $60,000,000 in additional funding in SFY 2002-03 from the HCRA 2000. It is anticipated that the Roswell Park Cancer Institute will receive an additional $45,000,000 in SFY 2003-04 above the expected HCRA 2000 allocation. There is a commitment to fund $45,000,000 for Roswell Park Cancer Institute in SFY 2004-05 from an extension of HCRA. The Department of Health currently maintains five direct care institutions: Helen Hayes Hospital in West Haverstraw and four nursing homes for the care of veterans and their dependents, Oxford, New York City, Montrose and Western New York. The Executive proposes a $3,933,000 funding increase for the Montrose Veterans' Nursing Home, which is a new, 252-bed facility in the lower Hudson Valley that opened in mid October 2001. Additionally, the Executive proposes a $2,225,000 increase for Helen Hayes Hospital and a $1,025,000 increase for Oxford Veterans' Nursing Home, associated with increased operational costs. Aid to Localities The Executive recommends All Funds Aid to Localities appropriations totaling $29,072,232,000, an increase of $2,124,715,000, or 7.9 percent over the SFY 2001-02 funding level. This increase is primarily attributable to an increase in Special Revenue Fund Federal and Special Revenue Funds Other. The Executive proposes General Fund appropriations totaling $6,765,055,000, a decrease of $208,125,000, or 3.0 percent from SFY 2001-02. The Executive also recommends a Special Revenue Fund Federal appropriation totaling $19,067,013,000, an increase of $948,109,000, or 5.2 percent. The proposed $1,384,731,000 increase in Special Revenue Funds Other is largely the result of a shift from General Fund spending. For the Early Intervention (EI) Program, the Executive recommends an appropriation of $210,000,000 for SFY 2002-03. In SFY 2001-02, the Executive is requesting a deficiency appropriation of $70,000,000 to meet a cash deficiency of $60,00,000, which is attributed to increased services provided to infants and toddlers with disabilities. The proposed SFY 2002-03 appropriation anticipates both enrollment growth and an increased use in services that the Executive expects to offset in part by taking new audit and fraud prevention actions in the EI program. Such actions are expected to save the EI program $5,000,000 in SFY 2002-03. The Executive proposes a $40,700,000 deficiency appropriation in the Elderly Pharmaceutical Insurance Coverage Program (EPIC) in SFY 2001- 02. As part of the recently enacted health care package (S.6084/A.9610), the expansion of the Elderly Pharmaceutical Insurance Coverage (EPIC) Program will now be funded from HCRA 2000 funds, rather than the General Fund, at a level consistent with current program growth. In addition, the health care package cut pharmacy reimbursement to mirror that of the Medicaid program by reducing reimbursement for all pharmacists to the Average Wholesale Price (AWP) minus 10 percent. This action is expected to generate a $25,000,000 savings to the EPIC program in SFY 2002-03. The Plan also changed the drug rebate methodology, again to mirror the Medicaid program, to generate $6,600,000 in savings to the EPIC program in SFY 2002-03. The Plan also requires private health insurers to match membership files, starting April 1, 2002, with EPIC enrollees files to facilitate the coordination of benefits. This action is expected to generate a $2,000,000 savings to the EPIC program in SFY 2002-03. The Executive recommends an appropriation of $209,500,000 in SFY 2002- 03 in the General Public Health Works Program to support local public health activities. The Executive is currently proposing a deficiency appropriation of $48,900,000 for this program, as well as a separate $21,900,000 deficiency appropriation to pay for activities related to the West Nile encephalitis outbreak. In addition, the Executive proposes to shift the lead poisoning prevention program and a portion of the abstinence program, a total of $4,600,000 in current year General Fund spending, to the Maternal and Child Health Federal Block Grant. In the AIDS Institute, appropriations totaling $53,656,000 were transferred from the General Fund to HCRA 2000, as part of the health care workforce bill (S.6084/A.9610) that passed in January 2002. As a result of this action, all Aid to Localities General Fund programs in the AIDS Institute will now be funded through HCRA 2000. Other notable changes proposed by the Executive in Aid to Localities include: -- a new $2,500,000 General Fund appropriation for the health and social services sexuality-related program; -- an additional $1,600,000 in funding to the Healthy Women Partnerships Program for SFY 2002-03 to increase breast and/or cervical screening services; and -- a $1,925,000 decrease in funding for the adult care facility Quality Incentive Payment (QUIP) program. Medical Assistance (Medicaid) Program The Executive recommends an All Funds Medicaid appropriation in Aid to Localities of $25,334,700,000, which is an increase of $1,545,000,000, or 6.5 percent, resulting from an increase in both Federal funds and Special Revenue Funds Other. The Executive estimates General Fund disbursements in the Department of Health will be $6,134,300,000 in SFY 2001-02. This total includes the requested deficiency appropriation of $179,600,000. The Executive attributes the deficiency to: the Legislature's rejection of the Executive's proposed Medicaid cost-containment package in SFY 2001-02, $138,900,000; additional litigation and Federal mandate requirements, $25,600,000; and the implementation of the new Disaster Relief Medicaid/Family Health Plus Program, $15,100,000. For State Fiscal Year 2002-03, the Executive proposes a total General Fund Medicaid appropriation of $6,156,000,000, a net increase of $21,700,000, or 0.4 percent over the SFY 2001-02 adjusted appropriation. The Executive estimates an increase in Medicaid General Fund expenditures in SFY 2002-03 of $441,800,000 associated with year-to-year program growth. In addition, the Executive increases the General Fund Medicaid appropriation by $81,000,000 to reflect the loss of a portion of the nursing home Inter-Governmental Transfer (IGT), and by $17,800,000 for costs associated with litigation and Federal mandate requirements. These increases in General Fund Medicaid spending are offset by $364,700,000 in SFY 2002-03 due to the passage of a health care package (S.6084/A.9610) in January 2002, prior to the release of the Executive Budget. Specifically, the bill: re-establishes the six percent assessment on residential health care facilities for $288,600,000 in savings; mandates the generic substitution of brand name pharmaceuticals unless a physician secures prior approval from the Department, for $2,500,000 in savings; increases the Inter- Governmental Transfer (IGT) on public hospitals and updates the base year from 1995 to 2000 for savings of $18,700,000; and extends the Medicaid Upper Payment Limit (UPL) benefit to outpatient services for $54,900,000. Medicaid General Fund spending is further decreased in the Executive Budget by $73,400,000, transferring both the Working Disabled 1619-B Program and the Medicaid Physicians Services Program from the General Fund to the HCRA 2000 Tobacco Control and Insurance Initiatives Pool. The Executive also proposes a $81,000,000 Medicaid General Fund savings related to Bad Debt and Charity Care, $72,000,000; various pharmacy initiatives, $1,500,000; and savings generated from the Office of Alcoholism and Substance Abuse Services (OASAS) from a new community-based detox program, $7,500,000. Health Care Reform Act of 2000 (HCRA 2000) In actions taken in January 2002, prior to the release of the Executive Budget, the Legislature passed a major health care package (S.6084/ A.9610) that significantly adds to HCRA 2000. In addition, portions of the package, mentioned below, take action to provide savings in the Medicaid/Health budget. Specifically, the bill re- establishes the six percent assessment on residential health care facilities for three years, which would generate a State share savings of $288,600,000 in SFY 2002-03. The bill also mandates the generic substitution of brand name pharmaceuticals under the Medicaid Program unless a physician secures prior approval from the Department, which would generate a $2,500,000 State Share savings in SFY 2002-03, and increases the Inter-Governmental Transfer on public hospitals and updates the base year from 1995 to 2000, which would offset General Fund spending by $18,700,000 in SFY 2002-03. In addition, the bill extends the Medicaid Upper Payment Limit (UPL) benefit to outpatient services, which would create a $54,900,000 General Fund savings in SFY 2002-03. In other savings actions, the bill also requires insurance companies to cover appropriate medical and therapeutic services in the Early Intervention (EI) Program. Although no savings are anticipated in SFY 2002-03 for this initiative, it is anticipated that this action would generate $60,000,000 in General Fund savings by the end of SFY 2004- 05. In the Elderly Pharmaceutical Insurance Coverage (EPIC) Program, the bill cuts pharmacy reimbursement to mirror that of the Medicaid program by reducing reimbursement for all pharmacists to the Average Wholesale Price (AWP) minus 10 percent. This action would generate a savings of $25,000,000 in SFY 2002-03 to the EPIC program. In addition, the bill changes the drug rebate methodology in the EPIC program, which would generate $6,600,000 in SFY 2002-03 in savings to the EPIC program. The bill also requires private health insurers to match membership files, starting April 1, 2002, with EPIC enrollees files to facilitate the coordination of benefits. This action is expected to generate a savings of $2,000,000 in SFY 2002-03. The bill also provides for the transfer of the expansion of the Elderly Pharmaceutical Insurance Coverage (EPIC) program, as well as of certain public health programs, from the General Fund to the HCRA 2000 to provide General Fund relief of $211,900,000 in SFY 2002-03. The bill also removes various obstacles to enrollment in the Child Health Plus, Family Health Plus, and Medicaid programs. Specifically, the bill eliminates the face-to-face interview during the recertification process for the Medicaid program; directs the Commissioner of Health to develop a simplified recertification form for persons renewing coverage in the Child Health Plus, the Family Health Plus, and the Medicaid Program; allows persons who are applying for community-based Medicaid to self-attest to their resource level; provides a grace period (60 days) during the recertification process for persons renewing Child Health Plus B coverage; allows individuals to self-attest to income during the recertification process in the Child Health Plus B program; and includes the use of an ambulance as an added service under the Child Health Plus benefit package. The bill also provides $2,700,000 to support administrative costs in SFY 2002-03 related to a Medicaid Buy-In Program for the working disabled. The program would provide Medicaid coverage for disabled persons, up to 250 percent of the Federal Poverty Level (FPL), and with assets up to $10,000, effective April 1, 2003. Workers with incomes above 150 percent of the FPL will pay a premium for coverage based on a sliding fee scale. In addition, the bill provides $900,000 in SFY 2002-03 for Medicaid coverage up to 250 percent of the FPL to uninsured and underinsured women diagnosed with breast cancer or cervical cancer who are screened through the Center for Disease Control's program, effective October 1, 2002. Article VII In an Article VII bill, the Executive proposes: -- authorizing the transfer of the Working Disabled 1619-b program from the General Fund to the Health Care Reform Act of 2000. The scheduled allocation amounts proposed by the Executive are $6,400,000 in Calendar Year (CY) 2002 and $4,300,000 from January 1, 2003 to June 30, 2003 from the HCRA 2000 Tobacco Control and Insurance Initiatives Pool; -- authorizing the transfer of the Medicaid Physicians Services Program from the General Fund to the Health Care Reform Act of 2000. The scheduled allocation amounts proposed by the Executive are $52,000,000 in CY 2002 and up to $43,000,000 from January 1, 2003 to June 30, 2003 from the HCRA 2000 Tobacco Control and Insurance Initiatives Pool; -- directing all of the cigarette tax receipts from the 39 cent increase to be deposited into the HCRA 2000 Tobacco Control and Initiatives Pool; -- increasing the HCRA 2000 allocations by $15,700,000 for the period January 1, 2002 to December 31, 2002, and $9,000,000 for the period January 1, 2003 to June 30, 2003 for the Elderly Pharmaceutical Insurance Coverage (EPIC) Program. Capital Projects The Executive recommends an All Funds Capital Projects appropriation of $156,600,000, an increase of $41,341,000 or 35.9 percent over SFY 2001-02 due to an increase in the Capital Projects Fund - 1996 Clean Water/Clean Air (CWA) (Bondable) and the Federal Capital Projects Fund. |
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