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| Legislative Report - April 30, 2009 |
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Budget issues continue to dominate the legislative process in 2009, with very little progress in the past two months. No further action on the current year (FY2008-09) budget is planned, since the state will use federal stimulus monies to fund any additional deficit that arises in the next two months. Some budget cuts from the February 1 budget adjustment bill have now been mitigated, either through court action or legislative correction. These include restoration of some DES and DHS cuts, such as developmental disability, child care and behavioral health. In addition, the AHCCCS recheck of eligibility was moved back from 6 months to 12 months, so that the state could qualify for $1.6 billion in health care stimulus funds (this change can be reversed later by the legislature if it wishes).
However, the projected deficit for the FY2009-10 budget has grown larger, and now exceeds $3 billion. As a result, nearly all areas of the budget are back on the table, with cuts to be based on the amount of federal stimulus money that will be available. On April 27, the Republican leadership released its newest budget proposal, with some potentially serious impacts. AHCCCS is targeted for a 5% cut on all reimbursement rates (about $50 million), which would affect all providers. A coalition led by the AHCCCS health plans and the hospital association (including nearly all provider groups) is working to eliminate or reduce this cut, and allow AHCCCS discretion in how to generate savings. AHCCCS has been working on the entire benefits package it now provides, including all therapies, so we will continue to seek parity for OT with other therapy coverages. Please note that all therapy providers are at risk that AHCCCS may scale back some or all benefits that are not mandated by federal law. School districts are also at risk, with the possibility of cuts in state aid to education, personnel layoffs, and pay or hiring freezes. The key issue for schools appears to be how much federal stimulus money will be available, and whether the legislature will try to sweep the fund balances that most districts keep for emergencies and budget shortfalls. ArizOTA continues to team with other health care groups to mitigate cuts and fund sweeps wherever it can. So far, there are no further sweeps proposed for the Arizona Board of Occupational Therapy Examiners, and some lawsuits have been filed on the FY2008-09 sweeps. With respect to bills of interest, there has been virtually no activity. The Senate continues to hold to its position that no Senate bills will be assigned to committee until the budget work is completed. The House has slowly moved a small number of bills to the floor, but they will be blocked up even if they are moved to the Senate. Only four bills have passed and been sent to the Governor, and they are all related to the budget. The status of bills being tracked is as follows. HB 2015: County Retiree Health Coverage Ban. Amended in Committee. HB 2158: Adult Immunization Information System. Awaits Floor Action. HB 2205: Behavioral Health Task Force. Not Heard. HB 2207: Regulation of Behavioral Analysts. Amended on Floor. HB 2237: Verify Immigration Status for AHCCCS. Amended on Floor. HB 2238: AHCCCS Fraud Reduction. Awaits Floor Action. HB 2324: Individual Health Policy Coverage Exemptions. Amended on Floor. HB 2358: Learning Disability Designations. Passed Committee. HCR 2005: Mental Health Coverage Resolution. Not Heard. Budget negotiations have not yet begun in earnest, so the session appears likely to last until June, even if most of the bills are not moved forward. |
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