MEDICAID PROVIDER RATE CUT
June 10, 2010

THE ISSUE

In the 2009 legislative session, the General Assembly gave the Secretary of Health and Human Services the authority to reduce Medicaid provider rates to accomplish reduction in funds that were put into the budget. The provision did say access to care should be considered. Because the budget was not passed until after the close of the fiscal year, the cuts were implemented over 9 months rather than 12 months. The result was a 9% rate cut. The cut achieved the budgeted savings of $76.4M and more.

The current budget draft does not adjust the cut back to the intended 5% for the coming year. If the legislature does not change the rate cut from 9% to 5% in the coming year’s budget - it will cut $100M rather than the budgeted $82M. And it comes out of provider rates, primarily those for outpatient services.

Not adjusting the cut to meet the budgeted target means that Medicaid will be over-collecting.

WHERE THINGS ARE IN THE BUDGET PROCESS

The Senate passed its budget in mid-May. The House rejected that version and passed its own version late last week. Any items that are not in agreement – like this one as there are slightly different versions – are in contention. A conference committee of House and Senate members has been appointed to work out differences with a goal of passing a budget by June 30.

THE MESSAGE PROVIDERS NEED TO SEND
Access to licensed mental health professionals is critical to providing quality mental health services in the Medicaid program. Providers took an unprecedented 9% rate cut as a result of last year's budget reductions. These rates have not been adjusted to meet the $82 million savings put in place during last year’s session for 2010-11. Instead, an additional $18 million is being collected, over the $82 million, on the backs of physicians and mental health professionals. Please support special provision language that sets a floor for professionals’ rates at 90% of the Medicare rate. Excessive rate cuts are likely to drive professionals out of the Medicaid program, reducing access to care for Medicaid recipients.

ACTION STEPS

Contact the members of the House and Senate leadership – see list below
Contact the members of the House and Senate Health and Human Services conference committee
Contact your OWN House member and Senator and ask them to support this effort by talking to their leadership and to the members of the HHS conference committee.
Use the message above in making contact – particularly asking them to support setting a floor for the professionals’ Medicaid rate at 90% of the Medicare rate. Let them know this is an access to care issue.

MAKING THE CONTACT

Given the timeframe, the best way to make contact to the persons in #1 & 2 is by e-mail to all of the members on the list below.

To contact your own Representative and Senator, please call their office and also send an e-mail. To find your Representative and Senator go to: http://www.ncleg.net/GIS/RandR07/Home.html and use the link under Registration that works for you.

House/Senate Conference Leadership

Title
First Name
Last Name
Leg Phone
E-Mail
Rep.
Alma
Adams
733-5902
alma.adams@ncleg.net
Senator
Charles
Albertson
733-5705
charlie.albertson@ncleg.net
Rep.
Martha
Alexander
733-5807
martha.alexander@ncleg.net
Senator
Marc
Basnight
733-6854
marc.basnight@ncleg.net
Rep.
Jim
Crawford
733-5824
jim.crawford@ncleg.net
Senator
Charlie
Dannelly
733-5955
charlie.dannelly@ncleg.net
Senator
Linda
Garrou
733-5620
linda.garrou@ncleg.net
Rep.
Pryor
Gibson
715-3007
pryor.gibson@ncleg.net
Rep.
Joe
Hackney
733-3451
joe.hackney@ncleg.net
Rep.
Phillip
Haire
715-3005
phillip.haire@ncleg.net
Rep.
Hugh
Holliman
715-0873
hugh.holliman@ncleg.net
Rep.
Maggie
Jeffus
733-5191
maggie.jeffus@ncleg.net
Rep.
Paul
Luebke
733-7663
paul.luebke@ncleg.net
Rep.
Mickey
Michaux
715-2528
mickey.michaux@ncleg.net
Rep.
Bill
Owens
733-0010
bill.owens@ncleg.net
Senator
A.B.
Swindell
715-3030
ab.swindell@ncleg.net
Rep.
Joe
Tolson
715-3024
joe.tolson@ncleg.net
Rep.
William
Wainwright
733-5995
william.wainwright@ncleg.net
Rep.
Jennifer
Weiss
715-3010
jennifer.weiss@ncleg.net
Rep.
Douglas
Yongue
733-5821
douglas.yongue@ncleg.net