Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON HEALTH AND HUMAN SERVICES

Date:03/29/2010
ATTENDANCE
Time:02:34 PM to 04:20 PM
Acree
Apuan
Place:SupCt
Gerou
Kefalas
This Meeting was called to order by
Kerr J.
Representative Riesberg
Primavera
Roberts
This Report was prepared by
Swalm
Kelly Stapleton
Tyler
Gagliardi
Riesberg
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
Briefing JBC-


02:34 PM -- Joint Budget Committee (JBC) Presentation on the FY 2010-11 Budget

The committee came to order. Representative Ferrandino began the presentation related to the proposed FY 2010-11 budget. He spoke to the long bill narrative regarding the Department of Health Care Policy and Financing's budget. Representative Ferrandino stated that the department received a 6.1 percent increase in total funding which is mainly due to the Medicaid caseload increase. He pointed out that the JBC sponsored House Bill 10-1382 which eliminates a delay of Medicaid payments to providers. He explained that the JBC decided that it was in the best interest of the state to make those payments on time and that it would not have saved the state as much money to delay those payments as originally thought. He stated that the Hospital Provider Fee bill will be bringing in approximately $13.5 million to the state to help offset the cost of uncompensated care and increase Medicaid reimbursement rates. Representative Kerr asked whether the department is shifting FTEs in the department if there will be an increase in order to implement the bill. Representative Ferrandino stated there will be an increase of 23 FTE.

02:41 PM

Representative Ferrandino stated that they estimate an 11.1 increase in Medicaid caseload and a 8.6 percent increase in cost. He stated that the American Reinvestment and Recovery Act funds have been extended for another 6 months, which will maintain the Federal Medicaid Assistance Percentage (FMAP) match. He commented that there will be a 1 percent reduction to providers for Medicaid reimbursement for a total of a 5.5 percent reduction over the last several years. Representative Swalm asked how much the state will be required to pay under the new federal health care reform legislation. Representative Ferrandino responded that the Hospital Provider Fee bill has put the state in a good position and that the initial expansion of Medicaid is 100 percent covered by the federal government and the cost to states is phased in over time. He stated that the department is currently in the process of assessing the cost to the state.






02:52 PM

Representative Ferrandino stated that there is an increase of $26 million for mental health clients participating in Medicaid. The increase is due to caseload increase. He commented that reimbursement rates for mental health providers have also been cut 5.5 percent over the past several years. He spoke to the Children's Basic Health Plan (CHP+) caseload increases. He spoke to the historical trends of the increase in caseload to the CHP+ program. The committee discussed how to fund the various populations who are eligible for Medicaid or CHP+. The committee discussed the tobacco settlement dollars and the declining tobacco tax revenue. Representative Roberts asked how the JBC estimates the Medicaid caseload. Representative Ferrandino stated that the numbers come from the state demographer. He commented that the state has had a net growth in population during the recession. He discussed how the Medicaid caseload numbers are estimated for the 5-year projection.

03:11 PM

The committee discussed the impacts of cutting provider rates. Representative Ferrandino stated that the Hospital Provider Fee bill also increases reimbursement rates to providers. Representative Roberts expressed concern that the caseload for Medicaid is growing and that fewer physicians accept Medicaid. Discussion ensued regarding how to address the issue.

03:18 PM -- JBC Presentation on the Department of Human Services

Representative Ferrandino spoke to the Department of Human Services' budget. He stated there is a 5.7 percent reduction in FTE. He stated that the department will see a 10 percent reduction in staffing due to the consolidation of the Office of Information Technology (OIT). Representative Ferrandino spoke to the consolidation of the OIT division and the cost savings associated with it.

03:29 PM

Representative Ferrandino stated that child welfare providers will receive a 2.5 percent reduction in reimbursement rates. He stated that about $13 million is being used from the county reserve dollars to fund the Colorado Works program. Discussion ensued about the closure of some of the units at the Grand Junction Regional Center. The committee discussed the closure of the Mental Health Institute at Ft. Logan. The committee also discussed the status of the Trinidad State Nursing Home.

03:43 PM

Representative Ferrandino spoke to the programs that serve individuals with developmental disabilities within the Department of Human Services. He stated that the division will receive a $8.5 million reduction. He stated that the JBC funded an increase of $1.7 million for early intervention programs.

03:48 PM -- JBC Presentation on the Department of Public Health and Environment

Representative Ferrandino spoke to the Department of Public Health and Environment's budget. He stated that the department is mostly funded with federal dollars and cash funds. He discussed the medical marijuana cash fund. He stated that there will be an increase in FTE to process the applications coming into the department. The committee discussed cuts to the budget in future years and what is the best approach to deal with the decline in revenue.

04:07 PM

The committee discussed Amendment 35 dollars and where those moneys are being allocated.




04:10 PM

Representative Ferrandino spoke to the legislative bills that the JBC is sponsoring that affect the various departments discussed.

04:17 PM

The committee adjourned.