Maryland Health Care for All Coalition

Statement on 2012 Health Care Exchange Legislation

Suzanne Schlattman — Wed, 02 May 2012 15:39:46 +0000

STATEMENT BY VINCENT DEMARCO, PRESIDENT
MARYLAND CITIZENS’ HEALTH INITIATIVE

COMMENDING GOVERNOR O’MALLEY AND THE MARYLAND GENERAL ASSEMBLY ON TODAY’S
SIGNING OF THE 2012 HEALTH CARE EXCHANGE LEGISLATION

On behalf of the over 1200 faith, community, labor, business and health care organizations in the Maryland Health Care For All! Coalition, we commend Governor Martin O’Malley and the Maryland General Assembly on today’s signing landmark legislation which will empower the Maryland Health Benefits Exchange Board to make health care more affordable for Marylanders.

As proposed by the Governor and passed by the General Assembly, this legislation gives the Exchange Board the authority to use effective methods such as team based patient centered medical care, value based insurance design, and active purchasing which will reduce the cost and improve the quality of health care for Marylanders insured by the new Exchange.

This legislation will also address cultural competency and health disparities so that every Marylander can get the health care they need.

We look forward to working with the Governor, Lt. Governor Anthony Brown, and Health Secretary and Exchange Board Chair Josh Sharfstein to make sure that the Board uses these new powers effectively to keep Maryland at the forefront of fully implementing the federal Affordable Care Act.

Maryland Health Benefit Exchange Act of 2012, House Bill 443

Detailed Outline

Summary of the legislation

Baltimore leaders, clergy push for budget fix

Suzanne Schlattman — Tue, 01 May 2012 12:16:08 +0000

WBAL TV
Local News
Story posted 2012.04.30 at 08:19 PM EDT

There are signs of progress on a possible special session to deal with the state budget as legislative leaders are expected to meet this week; however, no accord has been reached, which has fueled public pressure.

On Friday, House Speaker Michael Busch met with his budget team, which would support the version of the budget agreed to by negotiators on the last day of the session; however, there was no word Monday night on whether they’ve reached out to Senate President Mike Miller, who supports a slightly different tax package.

Meanwhile on Monday, members of Baltimore City’s clergy and city leaders added their voices to calls for a special session.
This is the scenario labor unions, some elected Democrats and a growing number of clergy envision if the so-called “doomsday budget” takes effect July 1.

“We stand here today representing 31 faith leaders throughout the state of Maryland, who demand the destruction of the doomsday budget before it destroys the state of Maryland,” said the Rev. Dr. Peter Nord, General Presbyter at The Presbytery of Baltimore.

Faith community leaders said they support increasing the sales tax on little cigars and other tobacco products to 70 percent — doing so would help expand health care coverage. They also support increasing the state income tax rate.

“Health care issues, education issues, issues of public security, all of those things are of great concern for us,” said the Rev. Fred Weimert, president of the Central Maryland Ecumenical Council.

“You are talking about laying off state’s attorneys, laying off police officers,” said Baltimore City Council President Jack Young, who is shepherding a resolution in support of a special session.

The doomsday scenario cuts $10 million in grants from the Baltimore City Police Department’s $360 million budget — that $10 million currently funds 90 positions.

Additionally, Baltimore City stands to lose $60 million in state aid for schools, and it reduces funding for higher education by 10 percent. (Related: City lays out possible cuts)

“These decisions, which the Legislature failed to make, trickle down very hard on our communities,” said the Rev. John Deckenback, of the Chesapeake Association of the Central Atlantic Conference, United Church of Christ.

When Busch’s budget leadership team met last Friday, they agreed to support a compromise reached by budget conferees before the session ended. The compromise includes raising the income tax rate on taxpayers who earn $100,000 or more a year. Last Tuesday, Miller had broken an impasse in a letter he sent to Busch and the governor, calling for the figure to be lowered to $75,000 (More: Senate president suggests compromise in letter).

“Now is not the time for the political brinkmanship that is being played out in this state,” said Bishop Douglas Miles, co-chair of Baltimoreans United in Leadership Development.

Those who favor cuts over tax increases are making just as much noise. Republicans pointed out the $35 billion doomsday budget actually increases spending by $700 million (More: GOP OK with doomsday budget). Americans for Prosperity, a grassroots organization supporting economic freedom, is circulating an online petition against a special session.

Meanwhile, Gov. Martin O’Malley is still waiting for the presiding officers of the General Assembly to agree on a plan before calling a special session. “These guys have been arguing with each other since January. They are tired, they are frustrated, they are angry and they are not completely responsible for their own behavior,” said Matthew Crenson, professor emeritus at the Johns Hopkins University Department of Political Science.

Busch and Miller have agreed that a special session should be called by mid-May to give local jurisdictions time to balance their books. (Related: County Executive Kevin Kamenetz on how Baltimore County is preparing, and how Baltimore County has balanced its budget sans tax increases)

The governor has a bill signing ceremony scheduled Wednesday, but if an agreement is not reached by then, talk of a special session may once again overshadow accomplishments made during the regular session.

Story posted 2012.04.30 at 08:19 PM EDT

Faith Leaders Want Budget Cuts Restored

Suzanne Schlattman — Tue, 01 May 2012 12:03:11 +0000

Fox 45
Mon, 30 Apr 2012 07:54:16 EDT

Faith leaders want the Maryland legislature to restore budget cuts that came with the so-called doomsday budget passed by the General Assembly earlier this month.

Religious leaders are scheduled to release a letter Monday morning asking the lawmakers to do away with the more than $500 million in cuts and enact a tax increase on some tobacco products.

Lawmakers are expected to return to Annapolis in mid-May to address the budget situation which also threatens 500 state employee jobs.

The cuts came as legislators unexpectedly failed to pass an income tax hike during the regular session, setting off a series of cuts to education and public services.

Religious leaders trying to prevent ‘doomsday’ in Maryland

Suzanne Schlattman — Tue, 01 May 2012 12:00:23 +0000

The Gazette
Danielle E. Gaines Staff Writer
Posted: 04/30/2012 4:44 PM

More than 30 religious leaders called on Maryland’s political leaders Monday to conduct a special session without further delay, arguing cuts from the so-called “doomsday” budget would hurt the state’s low-income residents and vulnerable populations.

“In just about every incidence of political tug of war, you find that children end up the losers,” said Bishop Douglas Miles, co-chair of Baltimoreans United in Leadership Development.

“Baltimore has made tremendous strides in education over the past few years, after many years of continuing decline in test scores and graduation rates, and now is not the time to throw a roadblock in the way of that progress.”

Miles said the state legislature must reconvene as soon as possible so school districts across the state will know what funds will be in their budgets, and have time to effectively plan for the next school year.

The Rev. Dr. Peter Nord, general presbyter of The Presbytery of Baltimore, said the group stood to “demand the destruction of the doomsday budget before it destroys the state of Maryland.”

Nord said the doomsday budget goes against the teachings of religion and the U.S. Constitution because it fails to protect the general welfare of Marylanders.

“If we allow the doomsday budget to remain, it will doom the hopes of those who seek an education,” Nord said.

“It will doom the hopes of those who yearn for adequate health care for all. It will doom the hopes of those who want to explore the life-saving potential of stem cell research. It will doom the hopes of all for great public safety. It will doom the hopes of those who will see their jobs disappear: police officers, firefighters, educators, librarians, 500 state workers who serve the public.”

The doomsday, or default, budget came into play when state lawmakers failed to pass a tax package and secondary budget bill that contains the revenues needed to support the General Assembly’s fiscal 2013 spending plan before adjourning April 9.

If the legislature does not act, the default budget, with more than $500 million in cuts, takes effect July 1. Gov. Martin O’Malley (D) has said he wants the legislature to reconvene in mid-May to reconsider the budget.

A resolution is necessary before May 23, when the state’s Board of Public Works will meet to consider how $130 million in cuts will be allocated to balance the doomsday budget, O’Malley said.

House Republicans argue a special session is not worth the cost to taxpayers and the state should accept the default budget, which is nearly $700 million more than the fiscal 2012 spending plan, the group says.

A special session could cost about $25,000 per day, according to the Department of Legislative Services. dgaines@gazette.net

Top Maryland Faith Leaders Call For Restoring Doomsday Cuts

Suzanne Schlattman — Mon, 30 Apr 2012 13:08:55 +0000

A group of top Maryland faith leaders will release a letter from over 30 faith signers representing hundreds of thousands of Maryland congregants calling upon the Governor, Speaker of the House and President of the Senate to convene a Special Session to restore the so-called “Doomsday” Cuts and to enact the life-saving tobacco tax increase which they nearly passed during the 2012 regular Session.

Among the major faith denominations and organizations signing onto the letter are the Central Maryland Ecumenical Council, the Episcopal Diocese of Maryland, the Baltimore Board of Rabbis and the Baltimore Jewish Council, the Evangelical Lutheran Church in America, Baltimoreans United in Leadership Development (BUILD), the Church Women United, the United Church of Christ, the Presbytery of Baltimore, and the Seventh-day Adventists.

WHY: For moral and humane reasons, faith leaders urge the Governor and General Assembly to hold a Special Session that undoes the Doomsday budget’s devastating consequences, and restores the addiction and death-preventing tobacco tax.

WHEN: Monday April 30, 2012 at 10am

WHERE: Episcopal Diocesan Center, 4 E. University Parkway, Baltimore

WHO: Rev. Fred Weimert, President of the Central Maryland Ecumenical Council Bishop Douglas Miles, Baltimoreans in Leadership for Leadership Development (BUILD) John Deckenback, Conference Minister, Central Atlantic Conference, United Church of Christ Rev. Dr. Peter Nord, the General Presbyter of the Presbytery of Baltimore Toba Rainess, Deputy Director of the Baltimore Jewish Council

PDF of the Letter

Health care reform: good for business

Suzanne Schlattman — Mon, 02 Apr 2012 13:08:32 +0000

Columbia auto shop owner already seeing benefits from Obamacare

The Baltimore Sun, Op-Ed
8:00 AM EDT, April 1, 2012
By Brian England

Last week, the U.S. Supreme Courtheard six hours of oral arguments for and against the constitutionality of the new health care law. As a small business owner, I am not a constitutional scholar, but I can definitively say this: the Affordable Care Act is cutting my health care costs and helping my business.

My wife and I run an auto repair shop in Columbia. We started as a small, family-business in 1978. Now, we’re a well-respected business with 19 employees, a long string of awards and a reputation for service.

One of the biggest barriers to growing a successful business has been the rising cost of health insurance. We’re committed to offering insurance coverage, but over the past 10 years it has become a real struggle to keep up with the costs.

We’ve become accustomed to rates going up 10 percent to 20 percent each year (sometimes even more), and we’ve had to look at many different ways to deal with the extra expense. We’ve got a great agent who does a lot of research and works hard to find the best options for us. But in the end, we’re the ones who have to decide what to do — and foot the bill.

We renew our insurance in August every year, so around June is when I usually start to get nervous. Last year, we heard a lot of speculation about how rates were going to go up even more because of health care reform. I was worried about the sticker shock, and what we might have to do to our insurance — like cut way back on the benefits — to continue affording it.

When we sat down with our agent at the end of July, I was bracing myself for the bad news. But when he pulled out our quotes, my worry turned to disbelief. The “bad” news: Our rates were going down 6 percent! I almost fell off my chair.

We had no major changes in our small group, the same average age as the year before, the same policy. On top of that, our agent told us that we’d also be gaining access to more preventive care, with no deductibles.

Premiums going down? This had never happened before in all the years we’ve been offering health coverage. We’d been getting squeezed by escalating health insurance costs all that time.

The first thing we asked was, “why?” We just couldn’t make sense of it.

Our agent explained that our rate correction was thanks to the “medical loss ratio” requirement in the Affordable Care Act — a piece of the law that requires insurance companies to spend at least 80 percent of the premiums they collect on actual health care costs, as opposed to CEO salaries, advertising and administration.

As a small business owner, I take customer value seriously. I know it’s what makes or breaks a successful small business. We’re committed to providing good value to our customers. It seems only fair that we should be able to expect the same from our health insurance companies, and now, thanks to the 80/20 value for premiums rule, we can.

We are so glad that something has been done about health care and that we’re already seeing some real savings from the Affordable Care Act. But now, with the shadow of the court challenge hanging over our head, we have something new to worry about: Are these savings here to stay, or will they be yanked away before we even get to our next renewal?

I’ve been dismayed to hear that one of the groups arguing against the health care law before the Supreme Court is a group that claims to represent the best interests of small businesses. This group certainly doesn’t represent me, and I hope it doesn’t get its way.

The health care law is already working for my business. It passes my inspection test with flying colors. There’s no good reason to take it off the road.

Brian England and his wife Jennifer own British American Auto Care in Columbia. Mr. England is a small business leader in the national Main Street Alliance network, which has filed a “friend of the court” brief to the U.S. Supreme Court presenting a small business case for upholding the Affordable Care Act. His email is beengland@comcast.net.

Note: Brian England is also a member of MCHI’s Board of Directors. Thank you for your leadership Brian!

Momentum for tobacco tax increase builds

Suzanne Schlattman — Thu, 08 Mar 2012 13:04:05 +0000

Bill: Tax Increase Would Generate $20M For Maryland

WBAL Television
March 7, 2012

ANNAPOLIS, Md. — A push by public health advocates to increase the tax on cigarettes, cigars and smokeless tobacco has gained momentum in Annapolis.

The argument in support of the legislation is straightforward: teens who cannot afford to purchase cigarettes turn to the more economical small cigars. The legislation would tax cigars and other tobacco products at the same rate as cigarettes, WBAL-TV 11 News reporter David Collins said.

Critics contend that doing so would create another financial burden for consumers and business owners.

Supporters countered that raising the price has proven effective in stopping people from picking up the habit — especially kids with limited incomes. A poll taken last fall supports the point that even kids are budget-minded.

“We know from the cigarette tax increases that costs count with kids. Children basically stop buying and stop using cigarettes when the costs gets beyond their means. Other tobacco products have not kept pace and now we have them flavored in everything that an ice cream cone can be flavored in. Certainly they are marketed to our children and we say cost them out of their reach,” said Baltimore City Councilwoman Mary Pat Clarke, D-District 14, who spoke at a rally Wednesday in Annapolis.

The tax on cigars and other tobacco products has not changed since 1999. An increase would generate $20 million for Maryland, Collins reported.

A Senate committee heard testimony Wednesday, and the House is scheduled to take up similar measures on Friday.

Health exchanges will benefit Maryland families

Suzanne Schlattman — Thu, 08 Mar 2012 12:49:27 +0000

Competitive insurance marketplace will drive down costs, improve quality

By Vincent DeMarco
The Baltimore Sun
1:13 p.m. EST, February 15, 2012

It’s no wonder Maryland families are so hard pressed to find good, affordable health insurance — premiums have outpaced earnings, and the field of insurance options is confusing. Even if a family is fortunate enough to have coverage, it’s hard to know if what you’re paying for is going to be there for you when you need it. That’s why our Health Care for All Coalition is so excited about Gov.Martin O’Malley’s health care bill (SB 238). By setting up a competitive insurance marketplace for private health insurance, also known as an exchange, this bill will give Marylanders more choice, more control and more peace of mind about their health care.

In Maryland, the average premium for family coverage in an HMO went up 42 percent in just six years, from $9,573 in 2004 to $13,613 in 2010. At the same time, the median family income declined 2 percent (adjusted for inflation). As a result of this disparity, 14.5 percent of non-elderly Marylanders, or 720,000 people, are uninsured. Given the recent economic turmoil, this would have been even worse but for the expansion of health care coverage in recent years to more than 300,000 Marylanders, funded in large part by a lifesaving increase in the state tobacco tax.

Fortunately, the federal health care law known as the Affordable Care Act has created a tremendous opportunity for states to make health care more affordable by creating exchanges that are better marketplaces for private health insurance. The O’Malley administration’s bill takes advantage of this opportunity and leads the country in implementing a stronger, redesigned health care system.

First, the bill makes health care more affordable by changing the state’s health insurance rules to assure fair competition among health plans. This bill gives the exchange the power to get health insurers to compete to offer the best plans. We believe that it will be the catalyst toward moving our health care system to be more effective, efficient and responsive to patients’ needs. Fair competition on cost and quality is an important step toward accessible, affordable, high-quality health care.

Second, the bill gives Maryland consumers more control over their coverage. Consumers can choose whether to buy their coverage in the exchange or not. Those who elect to do so may earn considerable savings in the form of tax credits and federal subsidies. The exchange will have certified “Navigators” in our communities to help small businesses and individuals understand all of their insurance options and assist them in signing up for the best deal for them.

Most importantly, Governor O’Malley’s bill will give Maryland families peace of mind that the coverage they are paying for will be quality, affordable care. Changing the way health care is delivered in this new exchange will encourage doctors to spend more face time with their patients, make preventive services more affordable by offering them at no cost to the patient, expand the use of electronic medical records, and encourage team-based, patient-centered medical care. And thanks to the federal health care law, Marylanders can rest assured that insurance companies can’t drop us or limit our benefits when we get sick or deny us coverage because of a pre-existing condition.

If you are currently getting health insurance through your employer or purchasing insurance through a broker, this bill won’t change anything you like about your situation. The current health care insurance markets don’t go away. But if you want to shop around for a better deal, need help paying for your premium or haven’t yet gotten covered, the exchange will be there for you if this bill is passed.

There is a lot to do to get the health insurance exchange up and running by Jan. 1, 2014, as required by the federal health care law. We believe this bill puts Maryland on the path to build one of the best health insurance exchanges in the country. We plan to work closely with the administration and the General Assembly to improve the bill as much as possible before it is finally passed.

Vincent DeMarco is president of the Maryland Citizens’ Health Initiative. His email is demarco@mdinitiative.org.

Response to the Response: Health care reform is needed because the current system isn’t working

7:30 AM EST, February 27, 2012

Randy Hart’s letter implies everything is great in our health insurance markets right now and that the federal health reform will wreck everything (“Insurance exchanges won’t reduce health care costs,” Feb. 21). I think Maryland’s small businesses and families that are struggling to afford health care would disagree. To paraphrase the late Sen. Patrick Moynihan, Mr. Hart is entitled to his own opinion, but not to his own facts.

Mr. Hart asserts that nine in 10 Marylanders have coverage through their employer. While we wish this were the case, the real number is just 68 percent.

Moreover, I have no idea why he thinks no one will enjoy the same health plans they have today when 63 percent of Maryland employees work for employers that “self-insure” and thus won’t be affected by Maryland’s health insurance regulations.

These companies offer good benefits to attract the best talent and will continue to do so in order to compete for the best workers even after the law is fully implemented.

According to Helen Darling, president of the National Business Group on Health, which represents large employers on health care issues, most large employers favored the federal health reform law that was passed!

Mr. Hart also claims that government programs can’t bend the cost curve and that the only thing that will reduce health care costs is for people to use fewer services. It is true that health care costs have been going up, but the costs in government programs have been going up more slowly than private plans that offer comparable benefits.

Research has found that it is not increased use of services that is the primary driver of costs in the U.S. but the prices we are paying for them, which are largely due to high administrative costs.

It is well documented that when faced with high deductibles, people reduce both needed care as well as unnecessary care because when you are sick and not a doctor, it’s hard to know which is which. Is that the kind of health care system we want?

Mary Jo Braid-Forbes, Silver Spring

Mary Jo Braid-Forbes is a policy adviser to the Maryland Citizens’ Health Initiative.

Coalition calls MD’s alcohol tax a success

Suzanne Schlattman — Wed, 08 Feb 2012 14:27:06 +0000

Capital News Service
By Kelsey Miller
January 27, 2012

ANNAPOLIS —- A coalition that pushed an alcohol tax increase last year is calling the tax a success and turning its efforts toward assuring that the new revenue is spent the way it was intended.

Representatives of the Lorraine Sheehan Alcohol Tax Coalition said Tuesday that the recent increase of the alcohol tax from 6 percent to 9 percent has been successful at achieving its two main goals: raising money for health care and potentially decreasing underage drinking and alcohol abuse.

Of the $70 million in expected revenue from the tax, $64 million in Gov. Martin O’Malley’s fiscal year 2013 budget is proposed for health care and community services.

The group now aims to keep the current budget plan intact as it goes to the General Assembly.

“The story’s not done, we need to convince the legislature to keep the budget as the governor proposed it,” said Vincent DeMarco, president of the Maryland Citizens’ Health Initiative.

Projections based on other states with similar increases show the tax should cause a nearly 2 percent decrease in alcohol consumption, according to testimony provided last year by Dr. David H. Jernigan, a professor in the Department of Health, Behavior and Society at Johns Hopkins University.

Most funds raised by the tax went to schools in the first year, DeMarco said.

“We were fine using some of the money for school construction because it was just one year,” he said. “Now that money is all being used for health care and community services.”

Part of the tax revenue was budgeted in fiscal year 2012 to help more Marylanders with developmental disabilities receive community service. This $15 million remains in the current plan.

This year, the governor budgeted $5.3 million to support recovery for those suffering from substance abuse, and $4 million to minimize health disparities.

O’Malley included $14.3 million for rebalancing, or favoring community-based care instead of long-term institutions.

Also included is $500,000 to support a fund for identification cards for the homeless, who need them to apply for jobs and receive necessary benefits, said Dr. Joshua Sharfstein, secretary of the Department of Health and Mental Hygiene.

Bruce Bereano, a lobbyist who opposed the tax last year, said the increase hit businesses hard.

“It really did dramatically hurt a number of small retail businesses,” he said.

However, despite these difficulties, Bereano hopes to see the revenue go toward its original intent.

“The tax was proposed for a specific reason and purpose,” he said.

Md. health advocates cheer allocation of proceeds from alcohol tax increase

Suzanne Schlattman — Wed, 25 Jan 2012 14:22:55 +0000

The Washington Post
Associated Press
January 24, 2012

ANNAPOLIS, Md. — Most of the money raised by a 50 percent increase in Maryland’s sales tax on alcohol has been allocated for health needs under Gov. Martin O’Malley’s budget, said health advocates who cheered the result Tuesday.

Vincent DeMarco, president of Maryland Citizens’ Health Initiative, said roughly $64 million has been set aside for health care purposes and the developmentally disabled.

“In sum, the alcohol tax increase money is being used for the health care and the community service programs we wanted it used for,” DeMarco said.

Last year, the General Assembly approved raising the tax on alcohol from 6 percent to 9 percent. About $15 million went to help about 500 developmentally disabled residents get off a 5,000-person waiting list to receive community services. Schools received about $47.5 million in the current fiscal year’s budget in a one-time allocation, and it was unclear last session how the money would be used in future years.

In the governor’s budget proposal, $27 million will be set aside to help the developmentally disabled, including the $15 million to continue the waiting list initiative.

About $18 million will support community health services, including $7.4 million to keep enrollment open in the primary adult care program, which covers outpatient primary care, substance abuse and pharmacy benefits. About $5.3 million will support long-term recovery and housing for substance abuse patients across the state.

Another $14.3 million will be used to expand community-based services to reduce the need to rely on institutions for long-term care.

The governor’s budget also includes $4 million to support a pilot project aimed at reducing health disparities through community-based expansions of care and services.

“We thank the governor and health secretary so much for making this happen,” DeMarco said. “Now, we’re going to work to make sure the General Assembly approves this budget.”