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State Policy Check-up

January 8, 2007

Arizona

The Department of Health Services will hold a January 30 hearing to consider revisions to and simplification of the State's Healthcare Group Program, which offers small group coverage to residents with a history of medical problems.

John Spain at jps@stateside.com

Arkansas

The Arkansas Department of Human Services Drug Review Committee will meet January 11 to receive public comments regarding short- and long-acting Beta Agonists.

Robert Axelrod at ar@stateside.com

The Arkansas Department of Human Services Drug Utilization Review Board will hold a hearing January 17 to discuss proposed clinical criteria and edits for Protopic and Elidel, to update the Arkansas Medicaid Evidence-based Prescription Drug Program regarding the December review for second generation antidepressants, and to re-review quantity limit edits and dose-optimization for C-II stimulants.

Robert Axelrod at ar@stateside.com

California

The California Department of Health Services (CDHS) will hold a hearing January 15 to discuss the State's recommendations for the use of Preventive Health and Health Services Block Grant funds for 2007. The Federal Centers for Disease Control and Prevention have made the block grant available to the CDHS for the development and implementation of programs to decrease the mortality rates of preventable diseases and injuries.

Eathen Gums IV at eg@stateside.com

Connecticut

The Connecticut Department of Consumer Protection has amended regulations governing the administration of influenza vaccine by pharmacists. The amendments revise pharmacist qualifying training requirements, systems for control, and reporting requirements. The amendments were adopted by the Secretary of the State November 30, 2006.

Eathen Gums IV at eg@stateside.com


Governor M. Jodi Rell (R) unveiled a proposal December 27 to provide affordable, comprehensive health insurance to uninsured adults in Connecticut. The initiative, called the Charter Oak Health Plan, will be open to adults of all income levels and will cost each participant about $250 a month in premiums. The Charter Oak Health Plan will offer a full prescription drug package with co-pays ranging from $10 to $15. Enrollees with pre-existing medical conditions would not be restricted from coverage.

Josh Fisher at jkf@stateside.com

Florida

The Consumer Health Information and Policy Physicians Data Technical Workgroup of the Agency for Healthcare Administration will meet January 11 to discuss implementation of Florida statutes that mandate transparency in health care through public reporting of health care data.

John Spain at jps@stateside.com

The Agency for Healthcare Administration will meet January 26 to discuss technical aspects of the Enhanced Benefits Program, under which Florida Medicaid Reform Health Plan members can receive pharmacy credits by taking part in activities that improve health.

John Spain at jps@stateside.com

The Office of Insurance Regulation will hold a hearing January 31 to set standards of review for charges over $30 within its Discount Medical Plan program.

John Spain at jps@stateside.com

Idaho

On January 9, interim committee reports will be given to the state legislature by several committees, including the Mental Health and Health Care committees.

Emily Wolkoff at egw@stateside.com

Iowa

The Iowa Human Services Department has proposed increases to maximum income for individuals and households seeking Medicaid supplementary assistance. The revisions increase the maximum family life home payment and maximum residential care per-diem of individuals eligible for Medicaid supplementary assistance. Written comments regarding the amendments are due on or before January 24. The Department will hold a hearing January 24.

Eathen Gums IV at eg@stateside.com

Kansas

The Kansas Health Policy Authority is accepting comments until January 13 regarding provider participation, scope of services and reimbursements for the Medicaid Program. A hearing to address the submitted comments will be held on January 16.

Robert Axelrod at ra@stateside.com

Kentucky

The Kentucky Cabinet for Health Services Pharmacy and Therapeutics Advisory Committee will meet January 18 to discuss its plans for implementing measures to control the cost of prescription drugs in the Medicaid program. The Committee was established in 2002 to review and develop a preferred drug list.

Eathen Gums IV at eg@stateside.com

Louisiana

The House Committee on Insurance is scheduled to meet January 9 and 10 to discuss possible health insurance reform legislation.

Daniel Clark at dwc@stateside.com

Maryland

The Health Care Commission is scheduled to meet January 18. The Commission's responsibilities include developing a comprehensive standard health benefit plan, establishing the HMO Quality and Performance Evaluation System and adopting a state health plan related to Certificate of Need decisions.

Josh Fisher at jkf@stateside.com

Missouri

The Missouri Drug Utilization Review Board will meet January 17 to discuss prior authorization and other pharmacy cost control issues.

Eathen Gums IV at eg@stateside.com

South Carolina

Governor Mark Sanford (R) released his executive budget January 3. The budget recommends a $60 million increase in Medicaid funding, as well as $4 million for prevention partnership grants and $2 million for chronic disease prevention to the Department of Health and Environmental Control (DHEC).

Josh Fisher at jkf@stateside.com


The South Carolina Department of Health & Human Services Pharmacy & Therapeutics Committee is scheduled to meet on February 1. The agenda is not available at present.

Josh Fisher at jkf@stateside.com

Tennessee

The Tennessee Department of Finance and Administration's Bureau of TennCare will hold a hearing January 17 to consider amendments to regulations governing cost-effective alternative services and claims for services denied which exceed benefit limits. The amendments allow provision of cost-effective alternative services when they are either alternative to covered Medicaid services that are cost-effective, or preventative in nature and offered to avoid the necessity of more costly treatment in the future.

Eathen Gums IV at eg@stateside.com

Texas

The Texas State Board of Pharmacy has proposed amendments to provisions regarding pharmacy records. The amendments would allow pharmacies to document information regarding the dispensing of a prescription either as a printed hard-copy or electronically in the pharmacy's data processing system. Comments on the proposed amendments are due by January 26. The earliest possible date of adoption is January 14.

Eathen Gums IV at eg@stateside.com


The Texas State Board of Pharmacy has proposed amendments to provisions concerning pharmacy operational standards. The revisions would allow institutional pharmacies to distribute prepackaged drugs for other institutional pharmacies under common ownership in compliance with Senate Bill 492 passed by the 79th Texas Legislature, Regular Session. Comments must be received by January 26. The earliest possible date of adoption is January 14.

Eathen Gums IV at eg@stateside.com

Wyoming

The Wyoming Joint Labor, Health, and Social Services Committee will meet January 8 with the State Healthcare Commission to discuss policy recommendations for the upcoming session.

Maggie Young at my@stateside.com

Spotlight on...

Electronic Health Technology

The adoption of electronic health record technology is widely regarded as critical to enhancing the performance and quality of the nation's health care system. Policymakers view these technology initiatives as a real opportunity to advance health care quality by improving compliance with recommended care for patients with acute and chronic conditions, reducing disparities in treatment and medical errors, and lowering overall health care costs for both private and public payers. While the benefits of electronic health records are clear, there are privacy and security considerations that need to be addressed before widespread implementation.

A recent study released by the Markle Foundation indicates that Americans overwhelmingly want to have electronic copies of their medical records and believe that having greater access to their information will reduce medical mistakes and costly repeat procedures. Despite the overwhelming interest in being a more active participant in their own health care, and having their medical information available online to themselves and their physicians, those polled also have very serious concerns about the privacy and security of their medical information. The same study found that eight in 10 Americans are very concerned about identity theft or fraud and the possibility of their data being used by marketers without their permission, with three-quarters of those surveyed saying the government has a role in establishing privacy and confidentiality protections for electronic health information.

Recently, five of the largest employers in the U.S. joined forces to provide a secure, confidential repository for their employee's medical records. Wal-Mart Stores, Intel, BP America, Pitney Bowes and Applied Materials are launching an initiative under which they will invest at least $5 million to provide electronic portable personal health records to employees through a web-based framework. Other employers and states are being invited to pay a fee to join the coalition, which is expected to launch its service in mid-2007. A key element of the health record initiative is that individuals control the information in their own health records. The records are expected to be held by an independent, not-for-profit organization.

Electronic health records have also garnered a great deal of attention within the states. In 2006, there was a significant increase in legislative measures addressing health information technology. While only fifteen states introduced electronic health care measures in 2005, state legislatures introduced over 100 bills during the 2006 legislative session. To date, a total of 14 states have enacted legislation addressing health information technology issues. The majority of the measures enacted in 2006 created offices or study committees to develop and implement a strategy for the adoption and use of electronic health records. Other bills, such as those introduced in Louisiana, New York, and Michigan, support the National Governors' Association (NGA) e-Health initiatives by creating an infrastructure for an interoperable health care information exchange infrastructure.

The NGA secured a $2 million one-year contract from the Department of Health and Human Services to create the State Alliance for e-Health. The initiative is a collaborative state effort to improve the nation's health care system by identifying barriers and establishing best practices to resolve state-level health IT problems that affect multiple states and pose challenges for interoperable electronic health information exchange. This is an opportunity for Governors to identify inter- and intra-state based health information technology policies and best practices.

Not surprisingly, privacy of health care information is a huge concern for privacy advocates. Many are concerned with the vulnerability and sensitivity of electronic health records, while others have expressed fears that employers would be enabled to access and use electronic health information, which could impact employment decisions or be sold for marketing purposes. And yet other privacy advocates have raised concerns about the protection of information, citing the possibility that electronic health records present yet another opportunity for identity thieves and hackers to steal very personal information.

In the aftermath of the 2005 hurricanes, access to electronic health records would have greatly assisted health providers who treated displaced residents far from their Gulf Coast homes. Most individuals can easily envision the benefits of electronic health records, especially in emergency situations. However, the challenges regarding security and confidentiality still need to be addressed in the eyes of critics, who worry that with the recent initiatives proposed by major employers, misuse of information is even more likely. As privacy advocates have argued, if patients are not confident about confidentiality, they may withhold critical information from their physicians, jeopardizing their care and the integrity of an electronic health records system.

As such, not only will this issue be revisited in 2007 by most states, but the debate will likely now also be shaped by industry initiatives to make a system of electronic health records a reality.

Phyllis Mitchell at pm2@stateside.com

Every two weeks, members of Stateside Associates' Health Care Practice select some health care-related state events and public policy issues to highlight in State Policy Check-up. Providing consulting, strategic planning, lobbyist management and legislative and regulatory monitoring services, the professionals of the Health Care Practice support both corporate and association clients.

For more information about these or for assistance in managing your health care issue needs, please contact Kate Viar or Phyllis Mitchell at (703) 525-7466.