2010 Georgia General Assembly

Legislative Update

March 5, 2010

The 2010 Georgia Assembly is in recess until March 8, which will then be its 21st legislative day in its 40-day term. The legislators have adjourned to wait on February revenue numbers to be known, as the state's falling revenues and its budget deficits have dominated this 2010 session. The Governor has proposed a 2% reimbursement cut in the Medicaid, which would impact all physicians; and a 1.6% tax on hospitals to help fill the Medicaid gap.  The Chapter opposes both measures and along with many other groups, has urged the legislature to pass an increase in the state's tobacco tax. Raising it to the national average would raise about $400M in new revenue.

As of today, here's a list of the bills we're following at the session now:

Budget Bills:

 (Note: The General Assembly must pass amendments to the current year budget (FY 2010); and then also pass the state budget for next year, FY 2011, which begins on July 1, 2010.  They take up the 2010 budget first.

FY 2010 Medicaid Budget:  House and Senate have passed this, but it has not yet been finalized by the Conference Committee. It contained no cuts in Medicaid reimbursement. However, because of falling revenues, the Governor may need to reduce revenue estimates, necessitating further cuts.

FY 2011 Budget: The budget writers are waiting to see February’s revenue numbers before proceeding with 2011, but the deficit appears nearly $1B dollars. It contains a 2% reduction in all provider fees, except hospitals.  And hospitals are to be taxed at 1.6% so that they receive a 6-8% rate hike.  However, only about a third of them are net winners. We and many others continue to push the tobacco tax as part of the answer.

House Bills: 

HB 23, (Ramsey, 72^nd), Would prohibit use of cell phones by teens while driving. Passed the House last year but now in a study committee.

HB 39, (Stephens, 164^th), increase in tobacco tax, would increase tax on cigarettes from .37 to $1.37 a pack and on smokeless tobacco from 10% to 25% of the wholesale cost price.  Not moving, but lots of talk.

HB 426, (Dempsey, 13^th), Requires expanded Insurance Coverage for Autism. Not moving.

HB 736, Flu mist: Adds nasal vaccine to injectable form which pharmacists may give to those 13 and older.

HB 834, Philosophical exemption to immunizations: Would permit under current Ga. Law. Not moving

HB 871, Voluntary vaccination:  Would make now required vaccinations in event of declared pandemic voluntary.  Not moving.

HB 927, Bullying: Would require schools to develop programs, expands definition of bullying and permits schools to separate parties when needed, and educate parents.

HB 938, Would prohibit texting while driving. Not moving.

HB 1184: Would permit sale of inter-state insurance policies. Chapter's concern is that the bill, as presently written, would exempt policies written by out of state companies from observing Georgia's mandated benefit laws, including coverage for well-child visits, 48-hour maternity stays, etc. This is part of the Governor's package. In House Insurance committee.

HB 1250, NPs and PA expansion: Would permit NP’s to prescribe Schedule II drugs, and to sign (also PA’s) any forms physician can now sign; and to be “recorded” as the provider of the patient’s care.  Assigned to a sub-committee of the House Non Civil Judiciary Committee, chaired by Rep. Ed Setzler. R-Acworth.

Senate Bills:

SB 5, (Thomas, 54^th), Require the use of seat belts in pick-up trucks & SUVs. Passed Senate last year; stuck in House Agriculture Committee.

SB 50, (Hudgens, 47^th),  MAG’s rental network bill, would prohibit plans from “renting” existing networks, without disclosure and transparency to providers. Passed Senate last week; now goes to House Insurance.

SB 62, (Hudgens, 47^th), would subject Third Party Administrators to the state’s prompt pay law. Passed Senate last year; but stuck this year in House Appropriations subcommittee.

SB 132, ( Fort, 39^th), would raise mandatory school age requirement from 16 years to 17.  Not moving.

SB 161, (Grant, 25^th), Autism, mandated benefits. Would mandate insurers to cover certain benefits for treatment of autism spectrum disorders. (Twin bill to HB 426.) Sponsors haven’t tried to move it.

SB 289, PT, OT, & SH Tx services for children in CMO’s: Makes certain improvements in receiving these services in Medicaid CMOs. Bill brought by their associations.  In Senate Health Committee.

SB 367, Flu mist: Adds nasal flu vaccine to the injectable form which pharmacists may give to those 13 and older.  Passed Senate.

SB 443: CMO Legislative Oversight: would create the Medicaid CMO Oversight committee to review consumer and provider complaints.  In Senate Insurance Committee and a hearing is expected next week. Author: Preston Smith, R-Rome.

 For more information on any of these of other bills, Chapter members may contact Rick Ward, at the Chapter office, at rward@gaaap.org.

Tobacco Tax Increase Talking Points:

1. The Medicaid budget profoundly effects the healthcare of children. Over 30% of all pediatricians recently surveyed the the Chapter have over half their practice in Medicaid.  Another 30% have almost half their practice in Medicaid (40% of the practice) That means that almost 2/3 of pediatricians have more than half of their practice covered by Medicaid.

3. Pediatricians are at the Tipping Point. Nearly 70% of these pediatricians indicated they can't keep providing care for less than their cost and will have to drop Medicaid patients if there are further cuts. Or they will reduce hiring and office hours and staff in order to try to make ends meet, not something the state economy needs now. Private medical practices are, at their core, small businesses.

4. Cutting Medicaid rates is penny-wise and pound-foolish, because it is a false economy. It will save money on one budget item, but cost more elsewhere.
Medicaid patients who are not seen in offices, will instead go to ER's (where they have to be seen, at higher cost) or wait till they are very sick, needing more and longer hospitalization. This will end up costing the state more, not less.

5. The current Georgia tobacco tax is far lower than the national average. The Georgia tobacco tax is lower than most states in the southeast.

6. Raising the Georgia tobacco tax by $1 per pack (to $1.37) will put it at about the national average.

7. Raising the tobacco tax will be good for children's health, because they are far less likely to start smoking if the price is higher. (Kids are more price-elastic than adults and the research has proven this.)

8. In order to keep providing care to children on Medicaid, the state needs to find an alternate revenue source as, the system cannot absorb any more cuts. The tobacco tax is ideal for that. It provides needed revenue and will lead to fewer teens smoking.
 

Mickey Channell, Greensboro - Vice Chair
404-656-7856
mickey.channell@house.ga.gov
 

Donna Sheldon, Dacula - Secretary
404-656-5025
donna.sheldon@house.ga.gov

Mark Burkhalter, Alpharetta
404- 656-5072
mark.burkhalter@house.ga.gov

Ed Rynders, Albany
404-656-7855
erynders@bellsouth.net

Jay Shaw, Lakeland
404-656-7859
jay.shaw@house.ga.gov

Ron Stephens, Savannah
404.656.5099
quickrxdrugs@aol.com

Pat Gardner, Atlanta
404-656-0265
pat@patgardner.org