Health Legislation, Budget and Reform Update The 2011 NM - PowerPoint PPT Presentation

Health Legislation, Budget and Reform Update The 2011 NM Legislative Session and Federal Health Budget Cuts March 30 th , 2011 Family & Community Medicine Grand Rounds Dan Derksen, MD Professor, Department of Family & Community Medicine Senior Fellow, Robert Wood Johnson Center for Health Policy

New Mexico Last in Access to Care* 32/33 Counties HPSA/MUA/P Uninsured 23% (49/50) Hispanic 44% Native Am 10% *Commonwealth 2009 Study: Accessed 3/29/11 http://www.commonwealthfund.org/Maps-and-Data/State-Data-Center/State-Scorecard.aspx

NM Legislature • Begins the third Tuesday in January • Odd years = 60 day session • Even years = 30 days (budget, appropriations, priority items on the “Governor‟s call”) • 50 th Session: Jan 18 – Mar 19, 2011

NM Legislature • 42 Senators (27 D and 15 R) • 70 Representatives (36 D, 33 R, 1 unaffiliated) • Nation‟s only unpaid volunteer citizens‟ Legislature (per diem of $159 day)

Who Represents You? • www.legis.state.nm • www.bernco.gov - then go to “Elected Officials” then to “Clerk” then “Where Do I Vote” • When to advocate – between sessions (setting agenda, formulating policy), during a session (informing policy), after a session (implementing policy), campaign

Ten Essential Services of Public Health

NM General Fund Expenditures „09 NM $ NM % US % Education K-12 $2.5 Billion 41.5% 35.8% Higher Education $0.87 Billion 14.3% 11.5% Medicaid $0.64 Billion 10.5% 15.7% Total Budget $6.08 Billion KFF State Health Facts 3/29/11 at: http://www.statehealthfacts.org/profileind.jsp?rgn=33&ind=33&cat=1

Governor‟s Proposed Budget FY‟12 • $5.4 Billion General Fund Spending • 4.4% Increase from 2011 • Balance budget w/o increasing taxes • Preserve spending in the classroom K-12 • Maintain health spending for vulnerable pop Gov. Martinez Executive Budget Accessed 3/29/11 at: http://budget.nmdfa.state.nm.us/cms/kunde/rts/budgetnmdfastatenmus/docs/1043714 049-01-10-2011-13-28-46.pdf

HB 2 Budget FY‟12 • $5.47 B General Fund Spending • Balanced w/o increasing taxes (state employees pay 3.5% more retirement) • Preserve spending in the classroom (1.5% cut non-classroom) • Maintain health spending for vulnerable populations (# on Medicaid will grow, GF support will approach $1 billion in 2012, 4:1 federal match) HB 2 accessed 3/29/11 at: http://www.nmlegis.gov/Sessions/11%20Regular/firs/HB0002.pdf

Health Bills Passed 2011 • Introduced: 1,511 total = bills + joint memorials + resolutions • Passed: 284 (129 House, 155 Senate) • Bills Passed = 18.8% • Governor has until April 8 to sign or veto • Unsigned = “pocket veto” Personal communication Michael Hely, NM Leg Council Service 3/29/11

Health Bills Passed 2011 • SB 14 Health Care Work Force Data, Analysis & Policy Act • SB 33/370 Health Insurance Exchange • SB 333 Amend the Medical Malpractice Act Gov. Martinez Executive Budget Accessed 3/29/11 at: http://budget.nmdfa.state.nm.us/cms/kunde/rts/budgetnmdfastatenmus/docs/1043714 049-01-10-2011-13-28-46.pdf

Addressing Access to Quality Care If we increase NM‟s primary care supply by 400 FTE‟s data shows we will: • Improve access to quality care. • Create 9,200 jobs in New Mexico • Generate $600 million in revenue for communities

Professional Liability Reform Principles of NM‟s Reform: 1)Decreased Statute of Limitations 2)Instituted Mandatory Screening Panel 3)Capped Non-Medical Damages, Since 1995: $600,000 ($200k primary, and $400,000 PCF)

Why Open Med Mal Act in 2011? • Protect individual physicians covered and their corporations • Create a separate hospital comp. fund, limit liability ( $1.5 million ) • Limit punitive damages (2X award) • Change to “Professional Liability Act”

But what we got for 2012… • Cap increased from 600,000 to $1 m • Cap increase 3%/yr or CPI (lesser of) • No separate hospital comp. fund • Corporations Covered • No limit punitive damages • Still “Medical Malpractice Act”

Regional Professional Liability Premiums Source: Medical Liability Monitor 2009 http://www.mymedicalmalpracticeinsurance.com/new-mexico-medical-malpractice-insurance.php#historicdata

New Mexico Public Payer Payer Source # New Mexicans Medicaid 550,000 Uninsured 450,000 Medicare 300,000 Other Public 150,000 CHAMPUS Tricare 50,000 Subtotal Public 1,500,000 Total Pop. NM 2,000,000

Starting in 2014 in New Mexico • 350,000 to 400,000 uninsured New Mexicans will have health insurance • This will increase demand 25-30% • We need to prime the health professions pipeline NOW!

New Mexico‟s Physician Shortage Numbers and Distribution Problems NM has a shortage of 2000 physicians currently The largest shortage is of primary care physicians (400 FTE‟s short) Of the 3,100 FTE active clinical physicians, 1,500 (48%) practice in Bernalillo County (which has 31% of NM‟s population)

UNM SOM Medical School and/or Residency Graduates by NM County - 2009 and NM Physicians with Active Licenses 40% ( N=1,769) 1 of NM‟s Taos Rio Arriba Colfax Total (N = 4,409) 2 San Juan Union 4/17 16/46 54/165 22/73 0/3 Los Alamos physicians with active Mora Harding 0/1 0/0 21/55 Sandoval McKinley license & NM Address Santa Fe San Miguel 26/102 54/128 21/54 131/489 Quay are grads of UNM 2/9 Bernalillo 1191/2412 Cibola Guadalupe 1/2 Valencia 4/15 SOM‟s medical school/ Torrance Curry 14/23 8/52 3/3 De Baca 0/0 residency programs Roosevelt Socorro 4/16 Catron 8/16 Lincoln 8/29 0/3 Chaves 38/115 Sierra Lea 1 UNM SOM Graduate Location Report 2010 3/10 Otero Grant 7/51 2 New Mexico Medical Board 2010 Official List of Active Physicians 20/65 Eddy 16/61 Doña Ana 10/62 Luna 80/307 2/23 Hidalgo 1/2

Can we keep more of our graduates in NM? YES - From 2005-2009, the # UNM grads practicing in NM increased by 103 per year From 2000-2005, the # UNM grads practicing in NM increased by 27 per year. From 1994-1999, the # UNM grads practicing in NM increased by 60 per year. < http://hsc.unm.edu/som/Locations/ >

HB 710 Medical Homes Rep. Danice Picraux Medical Home Pilots Medicaid CHIP SCI Signed by Gov. Richardson 4/09

Experiential Learning - RWJ Health Policy Fellowship Dan Derksen, M.D.

RWJ Health Policy Fellowship Embedded in the Congressional Staff Finance Committee Health, Education, Labor & Pensions (HELP) Committee POTUS U.S. Senator Jeff Bingaman D-NM Elected in 1982, 5 th Term Will Retire in 2012

HR 3590 Patient Protection and Affordable Health Care for America Act TITLE V – HEALTH CARE WORKFORCE Subtitle B – Innovations in the Health Care Workforce Sec. 5101. National health care workforce commission. Sec. 5102. State health care workforce development grants. Sec. 5103. Health care workforce assessment.

Health Workforce & the Affordable Care Act • $230 m Teaching Health Centers • $168 m PCP Training • $32 m Physician Asst Training • $45 m NP Training & Practice • $5 m State Hlth Workforce Grants • $1.5 b National Hlth Svc Corps

Affordable Care Act • Covers 32 million uninsured • Costs $794 billion • Reduces deficit $138 billion 2010- 19 Congressional Budget Office, Joint Commission on Taxation Accessed 8/23/10: < http://www.cbo.gov> < HTTP://www.thomas.gov >

HR 3590 “Patient Protection and Affordable Health Care Act” What happened 2010 : • Prohibits lifetime limits and recission of coverage • Requires coverage of preventive services • Reviews premium increases & “medical loss ratio” • Prohibits coverage denial children w pre-existing conditions • Reauthorizes, amends Indian Health Care Improvement Act

HR 3590 “Patient Protection and Affordable Health Care Act” What Happens In 2011: • 10% Medicare bonus payment primary care • Creates CMS Innovation Center • Requires insurers to spend 85% premiums on claims • Expands CHC, NHSC by $10 billion over 5 years In 2013 • Increases Medicaid up to Medicare rates for primary care • States must demonstrate ability to operate a health insurance exchange

HR 3590 “Patient Protection and Affordable Health Care Act” In 2014: • Creates health insurance exchanges • Requires guaranteed issue, adjusted community rating • Subsidizes premiums for 133 to 400% FPL • FPL family of 3 = $18,310 • Expands Medicaid to those <133% FPL (100% 3 yr FMAP)

Affordable Care Act In 2014 – THE MANDATE : • Taxes individuals without coverage 2.5% of household income or $695 - $2,085 yr • Taxes businesses >50 employees w/o insurance $2000/fte

Growing Uninsured…. Uninsured in U.S. That‟s a 32% 2000 38.4 Million Increase in Ten Years! 2009 50.7 Million US Census Bureau: Accessed 2/10/11 < http://www.census.gov/ >.

Congressional Budget Office: Peter Orszag

$2.4 Trillion on Health (17% GDP)* $0.7 to 1.2 Trillion Waste (5% GDP, 30-50% health spending)** $1.2 Trillion Wasted $210 B - Overtesting $210 B - Claims Processing $155 B - Defensive Medicine $100 B - Ignoring MD Orders