House Approves Spending Plan – Next Stop: Conference Committee

During the week of May 31, the House of Representatives reviewed, debated and amended its proposal to adjust the 2010 Budget, S 897. The bill was approved in separate votes on June 3 and in the early hours of June 4.
The House’s plan included a provision to preserve Medicaid funds for provider reimbursement, to the extent that funds permit. While the Secretary of Health and Human Services has the ability to make adjustments, the House’s proposal makes clear that provider reimbursements are to be preserved. Language directing cuts in rehabilitation therapies lines was not included. That does not mean, however, that DMA will refrain from implementing cost-saving measures for which it already has authority – or had its authority strengthened, as a function of the current budget debate.
Like the Senate, House budget writers assumed receiving an estimated $490 million from the federal government under a presumed extension of the FMAP formula through ARRA Because indications are that Congress has not agreed to providing the funding in its budget package, this line item became a major issue of contention between members. Lawmakers report that budget writers may include in the conference report or in a subsequent budget bill a provision directing that a special session to adjust the 2010 Budget be called if the ARRA funds are not appropriated. If that funding does not come to North Carolina, it could lead to further, significant cuts throughout the North Carolina budget, especially in the Health and Human Services area. Should lawmakers need to search for additional cuts, NCOTA is concerned that proposals to reach the necessary savings could include changes to optional Medicaid services – including OT, PT and ST -- or even service elimination. NCOTA encourages members to contact their legislators to explain the impact of such a cut.
To read the entire budget proposal, please visit the following link for information: http://www.ncleg.net/ The latest versions of the text of the bill and the money report are available on this page.
To identify your legislator or for more information about the North Carolina General Assembly, please visit www.ncleg.net .

©2010 Evelyn Hawthorne, NCOTA Government Relations Representative