Appropriations Committee Budget 2002-2003 Health Issues

An analysis of health related items from the budget passed by the Connecticut legislature's Appropriations Committee on 3/26/02 for state Fiscal Year 2003 (FY 03, 7/1/02 to 6/30/03).

Uninsured

• Delays implementation of premium assistance program to next year, provides $400,000 for program design
• HB-5023 - AAC Implementing the Governor's Budget Regarding the Department of Social Services - died in the Human Services Committee
• Expands income eligibility for HUSKY parents at reduced cost to consumers with benefit reductions
• Converts benefit package to HUSKY Part B for parents over 100% federal poverty level (FPL) ($15,020 for a family of three) 
• Charges parents over 100% FPL $15/month for coverage -- the Governor had proposed premiums of $30/month as for HUSKY Part B 
• Charges parents over 100% FPL copays as under HUSKY Part B -- $5 for physician visits, $3 for generic drugs, $6 for brand-name drugs 
• Expands eligibility from 150% to 185% FPL (from $22,530 to $27,787 for a family of three) 
• Estimated overall increase of 7700 CT low-income parents with coverage 
• Committee expects an additional 11,000 new HUSKY parents to enroll in the program 
• Committee recognizes that the imposition of even modest cost sharing will cause an estimated 3300 of the current 22,000 HUSKY parents to drop coverage 
• Net costs only $200,000 in FY03 -- $5.9 million annual when fully implemented
• Restores medical assistance for legal immigrants - otherwise due to expire 7/1/02 (costs $1.2 million) o SB-444 - AAC State Support for Legal Immigrants was approved by the Human Services Committee and is now in the Appropriations Committee

HUSKY, MEDICAID

• Delay capitated payments to Medicaid managed care plans for one month - saves $40 million 
• Restore physician rate relief for those who serve patients eligible for both Medicare and Medicaid - costs $3.9 million 
• Reverses Governor's proposal to raise provider rates by 2% 
• $2.5 million to provide smoking cessation services under Medicaid 
• Restores most funding for HUSKY outreach, Healthy Start and Children's Health Council

SAGA - State Administered General Assistance

• Restores Governor's proposed SAGA cuts for vision, durable medical equipment and other practitioner services ($2 million) 
• Did not restore home health services ($2.1 million) 
• Agrees to contract with community health centers to provide medications under SAGA - allows access to lower federal drug prices and improved access for consumers

Prescription Drugs

• Eliminates proposed asset test for ConnPACE 
• Restores Governor's proposed reductions in dispensing fees and prices paid to pharmacies for all programs 
• Establish a preferred drug list for Medicaid and ConnPACE for drugs which would not require prior authorization, negotiate a supplemental rebate with companies with drugs on the list - antipsychotics, anticonvulsants, antidepressants and HIV related antiretroviral drugs would be exempt from prior authorization

Public Health

• $580,000 for HIV prevention education 
• $240,000 to fund infertility prevention programming including a regional community health van 
• Retains OHCA as an independent department, independent of DPH 
• Retain Blue Hills Hospital substance abuse treatment center in Hartford

For the full Appropriations Committee Budget, go to http://www.cga.state.ct.us/ofa/RecentReports.htm 

By the Connecticut Health Policy Project
March 27, 2002

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