AAP Division of State Government Affairs

July 16, 2010 

This edition focuses on an update on the state fiscal crisis and its impact on Medicaid, and 2010 AAP Child Health Advocate Award winner, Utah State Representative Tim Cosgrove.


STATE BUDGETS AT MIDYEAR: IMPLICATIONS OF FMAP

As we reach the middle of July, and with most states having concluded their regular legislative business for the remaining calendar year, it is evident that the fiscal crisis gripping state capitals is far from over. While the broader economy is showing signs of stabilization, the most recent economic downturn is continuing to depress state revenues, and state level recovery is showing only modest improvement. Compounding matters is the ongoing debate in Washington, DC over the extension of $24.2 billion in Federal Medical Assistance Percentage (FMAP) funding from last year's stimulus legislation, now stalled in the US Senate, leaving states to wonder if they will be left without the additional funding anticipated, and in many cases, budgeted for in the coming fiscal year.

More than half of the states accounted for the extra funds in their budget planning for fiscal 2011, and without the additional FMAP funds to support state Medicaid programs, states will have to make additional program cuts, raise taxes, or find other cost saving measures to keep their budgets balanced. One of the prime targets for these additional cuts is in physician Medicaid payment. Over the past year, cuts have already been made in Kansas, Michigan, Mississippi, North Carolina, Oklahoma, Virginia, and Texas, and others may follow suit.

Due to maintenance of effort requirements included in the recent federal health reform legislation, states will be disqualified from receiving additional matching federal Medicaid funds if they roll back enrollment or eligibility. While these requirements ensure that states will not shortchange their commitments to state Medicaid programs, they also leave provider payment as one of the only viable remaining funding streams from which states will be able to draw to sustain their programs. Paradoxically, this will likely serve to discourage physician participation in the program - at a time when there are not only greater demands for its services, but as states prepare for its expansion as part of health reform.

Additional resources:
Recent Dallas Morning News story illustrating how cuts are already impacting provider participation in Medicaid.

Wall Street Journal article examining the implications to states if FMAP funding is not released.
• A Kaiser Family Foundation interview with Kansas Governor Mark Parkinson.

The Division of State Government Affairs will update AAP chapters on these issues as more information becomes available. Please contact the AAP Division of State Government Affairs at 800.433.9016, ext 7799 or at stgov@aap.org with any questions that you may have about state budget cuts or the current status of state Medicaid programs.


2010 AAP Child Health Advocate Award

2010 AAP CHILD HEALTH ADVOCATE AWARD
UTAH STATE REPRESENTATIVE TIM COSGROVE

The AAP Committee on State Government Affairs is pleased to announce Utah State Representative Tim Cosgrove as the recipient of the 2010 AAP Child Health Advocate Award. Representative Cosgrove was nominated by the AAP Utah Chapter in recognition of his advocacy work on behalf of children in Utah.

For the past 13 years, Representative Cosgrove has served as a child advocacy specialist at Primary Children’s Medical Center. There, he led the development of a grassroots advocacy group, The Child Connection, which brings together physicians and citizen advocates working in local communities to improve the health, safety, and well-being of children.

In 2004, Mr Cosgrove was elected to serve the 44th District of the Utah State House of Representatives. Representative Cosgrove was instrumental in the enactment of child passenger safety legislation and reinstatement of open enrollment for the Children’s Health Insurance Program, and has been a champion for graduate medical education and school nurse program funding, child abuse prevention, and welfare reform.

The AAP thanks Representative Cosgrove for his career-long commitment to child health and safety issues, and the Utah chapter for submitting his nomination. If you have any questions about the AAP Child Health Advocate Award, please contact Jeff Hudson in the AAP Division of State Government Affairs at jhudson@aap.org or 800/433-9016, ext 7799.



The Division of State Government Affairs sends this update to the Academy's Executive Committee, Board of Directors, District Vice-Chairs, Chapter Presidents, Chapter Vice Presidents, Chapter Legislative Contacts, Committee on State Government Affairs, Committee on Federal Government Affairs, Chapter Executive Directors, and other interested AAP members and staff.

For additional state legislative information, strategy suggestions, in-depth resources on issues of pediatric interest, and past editions of this update, log onto the AAP Member Center and see the State Government Affairs area at http://www.aap.org/moc/stgovaffairs/.

New and Notable

Health Care Reform: 6 Ways it Will Affect States - Council on State Governments

State Early Childcare and Education Appropriations -
National Conference of State Legislatures

Immigrants in the Child Welfare System -
First Focus

 

State Advocacy News

Judge Hears Arguments on Health Overhaul Challenge - NY Times

July 1 Brings Scores of New State Laws - Stateline.org

Judge Orders State
Custody, Medical Care for Oregon Faith Healers’ Child
- The Oregonian

What's Up Doc? (article on pediatric subspecialist shortage) - Worcester (MA) Telegram & Gazette

The Rise of Attorneys General - Governing

 

2010 State Primary Elections

GA: July 20
OK: July 27

KS, MI, MO: August 3
TN: August 5
CO, CT, MN: August 10
WA, WY: August 17
AK, AZ, FL, VT: August 24
DE, MD, MA, NH, NY, RI, WI: September 14
HI: September 18
LA: October 2

For more information on the issues contained in this e-mail update, please contact Ian Van Dinther at 800-433-9016, ext 7092 or at ivandinther@aap.org.