Public Policy Update: May 20, 2010

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Healthcare Legislation

May 20, 2010

 
 
 
 
 

 
Some Representatives Waver Over FMAP Extension; Contact Your Rep Today!
 
The House of Representatives is set to vote this week on $26 billion in additional funding to help state Medicaid programs. This funding would be used to extend the current increase in the Federal Medical Assistance Percentage (FMAP) by six months, to June 30, 2011. More than half of the Representatives in the House have previously expressed support for swift passage of the FMAP extension – but now, some lawmakers are wavering over the cost of unrelated provisions in the bill. The debate is currently centered around what revenue-raising provisions will be used to offset the costs of the bill, how much of the total cost needs to be offset, and the design and cost of a proposed “fix” for Medicare physician payment rates.
 
Meanwhile, the outcome of the FMAP extension is hanging in the balance – and we need you to tip the scales in favor of passage! Your hard work and advocacy on the FMAP extension have been crucial in getting us to where we are today, but we can’t stop now. States and individuals served by Medicaid are counting on an extension of the FMAP increase, and if Congress fails to act, states may be forced to make cuts to services or provider reimbursement. If you have not already done so, click here to write your Representative today, and urge him or her to vote for H.R. 4213. 
 
The National Council has signed on to an advertisement, scheduled to run Thursday in the popular Capitol Hill newspaper Roll Call, encouraging lawmakers to vote for the FMAP extension. Click here to view the ad and see the other organizations that have signed on. If the House votes to approve  H.R. 4213, it will then go to the Senate for a final vote. Stay tuned to our Action Alerts and the Public Policy Update for the latest news and opportunities to get involved.
 
 
Obama Administration Issues Guidance on Small Employer Tax Credits for Health Insurance 
 
This week, the Obama Administration has released new resources for small businesses to take advantage of a tax credit enacted under the Patient Protection and Affordable Care Act. Employers may use the tax credit to cover up to 35% of the cost of their employees’ health insurance. Employers of 10 or fewer workers who earn an average of $25,000 or less are eligible for the full credit of 35%, but the value of the credit phases out as the number of employees and their salaries rise. Businesses with 25 employees or those whose employees earn an average of $50,000 or more are ineligible for the credit. The government mailed postcards to 4 million businesses that may be eligible for the tax credit, although the National Federation of Independent Businesses estimates that only 1.8 million will be able to take advantage of it. The Internal Revenue Service has also released a step-by-step guide to claiming the tax credit and a document with answers to frequently asked questions. 
 
 
National Council Signs Letter in Support of Budget Increase for Health & Education Funding
 
The National Council has joined nearly 400 other organizations from the healthcare, education, and social services fields in requesting a $21 billion increase in discretionary spending on our sectors’ programs in the FY 2011 budget. The letter urges the Senate and House Appropriations Committees to increase the FY 2011 “302(b) allocation” for the Labor, Health and Human Services, Education, and Related Agencies Appropriations Subcommittee in order to respond to increased demand for these Agencies’ programs and stem deep cuts that have eroded programs in recent years.
 
“302(b) allocation” is the term given to the levels of discretionary spending permitted for each section of the budget. An important part of the budget process occurs when the House and Senate Appropriations Committees determine how to divide budget spending among their Subcommittees. The Subcommittees must then work out program allocations that stay within those spending limits (known as 302(b) allocations) – meaning that the outcome of any given program’s funding is strictly limited by the level of discretionary spending that was set at the beginning.
 
During the recession, many health and social services programs have seen deep cuts as state and federal revenues decline. Although Congress has worked to restore some of these cuts, many programs remain below their 2005 level of funding, and some have lost all funding completely. Visit the Federal Budget page of our website for more resources and information.
 
 
District of Columbia & Connecticut Set to Begin Early Expansions of Medicaid
 
The District of Columbia and Connecticut have become the first two jurisdictions to file plans with the Centers for Medicare and Medicaid Services to begin an early expansion of their Medicaid programs. Under the healthcare reform law, states are required to expand Medicaid eligibility to all individuals under 133% of poverty by 2014 – but may implement this requirement early if they choose.
 
Beginning July 1, the District would switch 35,000 low-income individuals from a city-funded insurance program over to Medicaid, where the majority of costs are paid by the federal government. As a result, D.C. estimates it will save $56 million over the next four years. Connecticut’s plan would add 45,000 people to Medicaid and save the state $53 million in just the next 15 months. As the economic recession continues, other states are considering early Medicaid expansions as a strategy for drawing down additional federal aid.
 
 
Hill Day 2010: Advocacy Training from the Best
 
New this year at the Public Policy Institute & Hill Day, the National Council is offering three exciting breakout sessions:
  • Advocacy 101: Learn how to make the most of your Hill visits in this workshop led by Kevin Scalia, Executive Vice President of Corporate Development for Netsmart Technologies, an experienced lobbyist with years of expertise in the field. 
  • Advocacy 201: Led by expert lobbyist Al Guida, President of Guide Consulting Services, this coaching session for experienced advocates will help you gain new skills to influence your elected officials. 
  • Applying for Federal Grants: Federal officials and experts will present advice and tips on successfully applying for grant funding. Help us plan the content of this breakout session by responding to our brief survey on your organization’s development needs. 
Sign up for your breakout session today! Just log in to your registration and click “RSVP” next to the section for Breakout Sessions located under your name. Sessions will take place on June 29th from 3:00-5:00p.m. at the Hyatt Regency.
 
Special Hill Day Hotel Rate Ends May 27! If you have not done so already, the National Council encourages you to call today to make your hotel reservations for Hill Day. Don’t wait – the specially discounted rates for our Hill Day room blocks will expire on May 21st for the Hyatt Regency and on May 27th for The Liaison. If you have any problems securing your room, please contact Rebecca Farley at 202-684-7457 ext. 235 or rebeccaf@thenationalcouncil.org.
 

Medicaid Mental Health

Real Stories

National Council member organizations across the country work hard to give nearly 6 million adults, children, and families with mental illnesses and addiction disorders a chance to recover and lead productive lives. Read their stories