Tennessee Health Care Campaign

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Beth Uselton
Executive Director
THCC
1103 Chapel Ave.
Nashville, TN 37206
615-227-7500
877-431-7083
Fax 615-846-1946
Email

THCC's Current State Policy Efforts


THCC's 2011 state legislative focus is:

Hospital Assessment: Most feasible revenue option.

THCC supports the Hospital Assessment. Without the assessment, cuts to the TennCare program would be draconian. THCC is currently discussing the pros and cons for increasing the assessment from 4.52% to the maximum allowed by federal law, 5.5%, and effective 9/1/11, it can be increased to 6%. Click here for Fact Sheet for increasing assessment. For information on the Tennessee Hospitals Association Fact Sheet, click here.

Status: Senate - Referred to the Senate Finance Committee. House - Referred to the Health and Human Resources Committee. Here is the link.

Tennessee Small Business Protection Act:

Tennessee's business tax laws allow multi-state companies to avoid taxes by setting up subsidiaries in Delaware or Nevada to transfer ownership to their real estate or trademarks and logos. For More information, click here. But what you need to know is that this could raise up to $110 million dollars per year. With matching federal funds, this is more than enough to stop cuts to TennCare and to mental health.

Mental health services are at the breaking point:

Mental Health Cuts were averted last year with one time stimulus money from the federal government, but for this year, unless new revenues are found, services will be cut. The Tennessee Coalition for Mental Health and Substance Abuse Services put forth a White Paper on the harm of continued cuts in the program. Click here for an Executive Summary. For the full White Paper, click here.

Health Care Compact: Talking points. Click Here.

*SB 0326 by *Beavers, Tracy, Gresham, Haile, Ramsey, Roberts. (HB 0369 by *White, Shipley, Casada, Carr, Williams K, Evans, Maggart, Rich, Hensley, Ramsey, Lollar, Todd, Weaver, Keisling, Coley, Campbell.)

Fiscal Summary
(CORRECTED) Increase State Expenditures - $52,000/FY12-13 and Subsequent Years Increase Federal Expenditures - $1,232,742,500/FY12-13 and Subsequent Years Other Fiscal Impact - Beginning in FY12-13, the state will take over the administration of and benefits provided through the Medicare program reflecting a total shift to Tennessee of approximately $11,505,596,700 in federal funds. Of this amount, $10,272,854,200 is for services currently provided to Tennessee citizens and $1,232,742,500 is for administrative costs currently incurred by the federal government that will be redirected to Tennessee for administrative purposes (shown as Increased Federal Expenditures above). This shift will not change the total amount of federal funds being spent on the program. The total amount of services and covered benefits that enrollees are receiving will remain unchanged. The program will remain 100 percent federally funded.

Bill Summary: This bill enacts the Health Care Compact which:

    1. Specifies that each member state of the compact would have the authority to enact state laws that supersede any and all federal laws regarding health care within its state;
    2. Specifies that each member state would have the right to mandatory federal funds to support the exercise of member state authority under this compact and that this funding would not be conditional on any action, regulation, policy, law, or rule of any kind of the member state. According to an appendix of the Compact, in 2010, such federal funding in Tennessee was $16.389 billion; and
    3. Creates the interstate advisory health care commission, described below. Under this bill, the interstate advisory health care commission would consist of members appointed by each member state through a process to be determined by the laws of each member state. No state may appoint more than two members to the commission, and at any time a member state may withdraw its members from the commission. The commission may not act unless a majority of the members are present, and no action would be binding on the commission unless approved by a majority of the total number of members. The commission will meet at least once a year. The commission may study the issues of health care regulation of particular concern to the member states, such as the elimination of interstate barriers to the provision of health care. After consideration, the commission may make non binding recommendations to the member states. Additionally, the commission would collect information and data to assist the member states in their regulation of health care, including assessing the performance of various state health care programs and compiling information on the cost of health care. The commission would make this information and data available to the legislatures of the member states.

Status as of 3/30/2011: Senate - Passed the Senate Welfare Committee and sent to the Senate Finance Committee. House - The Health and Human Resources Sub-Committee will vote on the bill on Tuesday morning, April 5, 2011. Click here for a list of House Health Sub-committee members to call.

Concerns:

    1. Undermines the new federal health law
    2. Allows insurers to sell across state lines, weakening benefits and protection
    3. According to this bill, the state could take over Medicare Tennessee Health Care
    4. Under the new federal health law, in 2016 compacts may only be approved by HHS if it is determined that the compact will provide coverage that is at least as comprehensive and affordable as coverage provided through the state Exchanges. This state law would not have to abide by any federal laws.

Tennessee Health Freedom Act:

*SB 0079 by *Beavers, Johnson, Tracy, Summerville, Yager, Watson, Bell, Gresham, Campfield, Haile, Faulk, Ramsey. (HB 0115 by *Weaver, Campbell, Brooks K, Coley, Ramsey, Lollar, Dean, Rich, Hensley, Butt, Matlock, Faison, Miller D, Hall, Harrison, Williams R, Sanderson, McCormick, Powers, Maggart, Holt, Sargent, Wirgau, Shipley, Halford, Hurley, Casada, DeBerry J, Evans, Dennis, Sexton, Eldridge, Forgety, Sparks, Womick, Carr, Gotto, Tidwell, Alexander, Watson, Hill, Matheny, Pody, Niceley, Marsh, Ragan, Hawk, Lundberg, McManus, Brooks H, Johnson C, White, Haynes.)

Fiscal Summary: NOT SIGNIFICANT

Bill Summary: This bill declares it to be the public policy of Tennessee that:

    1. Every person within the state is free to choose or to decline to choose any mode of securing health care services without penalty or threat of penalty; and
    2. Every person within the state has the right to purchase health insurance or to refuse to purchase health insurance.
    3. This bill prohibits the state government from interfering with a citizen's right to purchase health insurance or with a citizen's right to refuse to purchase health insurance. This bill declares any law passed in violation of the policy expressed in this bill to be void ab initio. This bill prohibits any public official, employee, or agent of this state or any of its political subdivisions from acting to impose any penalty in Tennessee that violates the public policy set forth in this bill.

ON FEBRUARY 23, 2011, THE SENATE ADOPTED AMENDMENTS #1 AND #2 AND PASSED SENATE BILL 79, AS AMENDED.

AMENDMENT #1 clarifies that it is not the public policy of this state that the right of citizens to choose or decline to choose health care coverage prevents courts from ordering parents to provide health care coverage for their children in child support cases.
AMENDMENT #2 clarifies that it is not the public policy of this state that the right of citizens to choose or decline to choose health care coverage prevents an employer from requiring that the employer's employees participate in a health insurance plan as a condition of employment.

Status: Passed in both the House and Senate and signed by the Governor.

Concerns:

    1. This would negate the individual mandate, requiring everyone to have insurance. According to studies only about 1⁄2 of people, and most likely sick people, would purchase health insurance.
    2. Healthy people would wait to purchase insurance when they get sick.
    3. Such a system would make premiums rise at an alarming rate.
    4. This ultimately will have to be decided by the Supreme Court