Health and Human Services Budget

There has been a lot of discussion about the House’s proposals to cut close to $254 million from the Department of Health and Human Services. My seatmate, Senator Doug Berger, a co-Chairman on the Senate Appropriations Sub-Committee on Health and Human Services wrote the following about these cuts and what it will mean for these programs and has given me permission to send it to you.

The House is currently working on the budget and their approach to balancing it is decidedly different than that of the Senate. Currently the House’s budget will have no tax increase in it. That means that they will have to gut a slew of state programs, to the point where it is harmful to the general public. Eliminating some programs and reducing funds to others is inevitable with the state of the economy. Everyone is going to feel the pinch. However, approaching this crisis from a “cuts only” angle is neither realistic nor wise.

The Senate budget included a $54 million cut in personal care services and a $15 million cut in community based support programs for the mentally ill. The House budget goes much further, reducing personal care services by $131 million over two years. Their budget would also eliminate almost all community support services for mentally ill adults.

The Governor's proposed budget and the budget adopted by the Senate included an expansion of 15,583 additional children to be covered by Health Choice, which provides health insurance to the children of low and middle income working families who may be unable to afford health insurance from another source. The House budget proposes placing a cap on enrollment for Health Choice.

The House budget also makes additional cuts to Medicaid benefits for adults. The House eliminates Physical Therapy, Occupational Therapy and Speech Therapy benefits for adults. They also reduce the adult dental and optical coverage available under Medicaid. The House’s budget called for $15 million and $22 million in spending cuts, respectively, on these programs. But cutting Medicaid programs also negatively affects State revenue.

Because of the Federal Stimulus program, the Federal Government now pays North Carolina three dollars for every one dollar that the State spends on Medicaid. The North Carolina Hospital Association estimates that hospitals lose four dollars in revenue for everyone one dollar the state cuts in spending. That money funds jobs within North Carolina’s large health care industry as well as the surrounding community. The NCHA estimated that because of associated jobs losses a $25.5 million cut would result in over $95 million worth of lost tax revenue and Federal funds.

The House’s budget also cuts Medicaid reimbursements to physicians, dentists, hospitals and other healthcare providers by 5.5%. This amounts to a savings of $148 million spent by the state. This cut would lessen the amount of providers willing to treat the poor who rely on Medicaid for their insurance coverage.

The impact of these cuts on children, on the elderly, on the poor and on the disabled can not be overstated. But these cuts also impact those of us who have private insurance. When hospitals provide an emergency health service to the uninsured, or provide a discount to an individual going through hard times, or receive a payment from Medicaid that does not cover the full overhead cost of the service, they are forced to make up the difference elsewhere. To remain open hospitals will often increase what they charge private insurance companies, or individuals who pay for care out of pocket. One study found that approximately $1,017 of every family insurance policy purchased in the United States goes to cover cost increases linked to providing care for the uninsured. You can read about that study here.

Currently 21% of our State’s population is uninsured. In addition to the cost of providing uncompensated care, N.C. also loses between $4.2 billion to $8.3 billion annually in lost productivity due to uninsured sick workers, or caretakers of uninsured dependents needing to miss work. To read more about how the uninsured affect our state visit here.

Silver Alerts

Silver Alerts are issued in the instance of an individual who suffers from dementia or other cognitive impairment disappears. There has been some confusion on the age requirements for Silver Alerts. This week, we passed House Bill 1129, which clarifies that a Silver Alert can be issued for a person of any age. This will allow authorities to more quickly find non-adults, such as youth with autism or other developmental or mental disabilities.

Apple Computers Coming to North Carolina

Apple Computers, the maker of the popular iPod, iPhone and one of the world’s largest computer and computer accessory manufacturers has announced this week that they are building a $1 billion datacenter in North Carolina. The datacenter itself is expected to employ 50 people. According to the North Carolina Department of Commerce, Apple Computers is expected to have a $5-6 million annual economic impact in the state. The new datacenter should also lead to an increase of 250 outside jobs, ranging from security to HVAC to construction.

North Carolina has consistently been ranked as a state with a “Top Business Climate” according to Site Selection, a magazine dedicated to economic development. Last November, the magazine stated North Carolina had the top business climate for the fourth consecutive year and seven of the last eight years. We are deeply interested in maintaining this ranking as it will increase the State’s ability to attract quality jobs from companies such as Apple Computers.

Business Week article on Apple Computer’s announcement can be found here.

School Bus Safety

This week the Senate passed House Bill 440, Nicholas Adkins School Bus Safety Act, named for a 16-year-old Rockingham County student who was struck and killed as he crossed the street to board the school bus. The bill allows for school systems to install cameras on the school bus stop arms.

The legislation also increases the penalties for drivers who ignore the school bus stop signs and killed a person and also stipulates that evidence collected from the cameras is admissible in court.

Do Not Call Registry

We also passed House Bill 686 to modernize the state’s “Do Not Call” registry. You already have the right to protect yourself from unwanted and annoying telemarketing phone calls—and some telemarketers aren’t just a bother, they’re criminals out to steal your money and your personal information.

This update requires utility companies to notify you annually (by bill insert or email) of the registry and your right to stop unwanted calls. You can add your phone numbers by calling toll free (888) 382-1222 or join by email at www.donotcall.gov .