SB-0172, As Passed Senate, April 26, 2011

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 172

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to make appropriations for the department of community

 

health and certain state purposes related to mental health, public

 

health, and medical services for the fiscal year ending September

 

30, 2012; to provide for the expenditure of those appropriations;

 

to provide anticipated appropriations for the fiscal year ending

 

September 30, 2013; to create funds; to require and provide for

 

reports; to prescribe the powers and duties of certain local and

 

state agencies and departments; and to provide for disposition of

 

fees and other income received by the various state agencies.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

PART 1

 

LINE-ITEM APPROPRIATIONS

 

FOR FISCAL YEAR 2011-2012

 

     Sec. 101. Subject to the conditions set forth in this act, the


 

amounts listed in this part are appropriated for the department of

 

community health for the fiscal year ending September 30, 2012,

 

from the funds indicated in this part. The following is a summary

 

of the appropriations in this part:

 

DEPARTMENT OF COMMUNITY HEALTH

 

APPROPRIATION SUMMARY

 

   Full-time equated unclassified positions.......... 6.0

 

   Full-time equated classified positions........ 4,029.5

 

   Average population.............................. 893.0

 

GROSS APPROPRIATION.................................... $ 13,833,859,600

 

   Interdepartmental grant revenues:

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................         4,528,700

 

ADJUSTED GROSS APPROPRIATION........................... $ 13,829,330,900

 

   Federal revenues:

 

Total other federal revenues...........................     8,686,999,400

 

   Special revenue funds:

 

Total local revenues...................................       248,426,200

 

Total private revenues.................................        96,494,700

 

Merit award trust fund.................................        86,744,500

 

Total other state restricted revenues..................     2,069,581,200

 

State general fund/general purpose..................... $  2,641,084,900

 

   Sec. 102. DEPARTMENTWIDE ADMINISTRATION

 

   Full-time equated unclassified positions.......... 6.0

 

   Full-time equated classified positions.......... 175.2

 

Director and other unclassified--6.0 FTE positions..... $        583,900

 

Departmental administration and management--165.2


 

   FTE positions........................................        16,667,000

 

Worker's compensation program..........................         8,772,300

 

Rent and building occupancy............................        10,628,100

 

Developmental disabilities council and

 

   projects--10.0 FTE positions.........................         2,855,700

 

GROSS APPROPRIATION.................................... $     39,507,000

 

    Appropriated from:

 

   Federal revenues:

 

Total other federal revenues...........................        14,092,400

 

   Special revenue funds:

 

Total private revenues.................................            35,100

 

Total other state restricted revenues..................         2,502,900

 

State general fund/general purpose..................... $     22,876,600

 

   Sec. 103. MENTAL HEALTH/SUBSTANCE ABUSE SERVICES

 

ADMINISTRATION AND SPECIAL PROJECTS

 

   Full-time equated classified positions.......... 111.5

 

Mental health/substance abuse program

 

   administration--110.5 FTE positions.................. $     17,386,800

 

Gambling addiction--1.0 FTE position...................         3,000,000

 

Protection and advocacy services support...............           194,400

 

Community residential and support services.............         1,777,200

 

Federal and other special projects.....................         2,697,200

 

Family support subsidy.................................        19,470,500

 

Housing and support services...........................         9,306,800

 

GROSS APPROPRIATION.................................... $     53,832,900

 

    Appropriated from:

 

   Federal revenues:


 

Total federal revenues.................................        37,301,600

 

   Special revenue funds:

 

Total private revenues.................................           190,000

 

Total other state restricted revenues..................         3,000,000

 

State general fund/general purpose..................... $     13,341,300

 

   Sec. 104. COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE

 

SERVICES PROGRAMS

 

   Full-time equated classified positions............ 9.5

 

Medicaid mental health services........................ $  2,055,796,700

 

Community mental health non-Medicaid services..........       268,839,200

 

Medicaid adult benefits waiver.........................        32,056,100

 

Mental health services for special populations.........         6,873,800

 

Medicaid substance abuse services......................        42,410,600

 

CMHSP, purchase of state services contracts............       134,201,900

 

Civil service charges..................................         1,499,300

 

Federal mental health block grant--2.5 FTE positions...        15,397,500

 

Community substance abuse prevention, education, and

 

   treatment programs...................................        81,737,500

 

Children's waiver home care program....................        18,944,800

 

Nursing home PAS/ARR-OBRA--7.0 FTE positions...........        12,179,300

 

Children with serious emotional disturbance waiver.....         8,188,000

 

GROSS APPROPRIATION.................................... $  2,678,124,700

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

Interdepartmental grant from the department of human

 

   services.............................................         2,769,000

 

   Federal revenues:


 

Total other federal revenues...........................     1,519,433,700

 

   Special revenue funds:

 

Total local revenues...................................        25,228,900

 

Total other state restricted revenues..................        22,314,900

 

State general fund/general purpose..................... $  1,108,378,200

 

   Sec. 105. STATE PSYCHIATRIC HOSPITALS, CENTERS FOR

 

PERSONS WITH DEVELOPMENTAL DISABILITIES, AND

 

FORENSIC AND PRISON MENTAL HEALTH SERVICES

 

   Total average population........................ 893.0

 

   Full-time equated classified positions........ 2,194.2

 

Caro regional mental health center - psychiatric

 

   hospital - adult--468.3 FTE positions................ $     56,772,200

 

   Average population.............................. 185.0

 

Kalamazoo psychiatric hospital - adult--483.1 FTE

 

   positions............................................        54,782,400

 

   Average population.............................. 189.0

 

Walter P. Reuther psychiatric hospital -

 

   adult--433.3 FTE positions...........................        52,297,800

 

   Average population.............................. 234.0

 

Hawthorn center - psychiatric hospital - children

 

   and adolescents--230.9 FTE positions.................        27,075,900

 

   Average population............................... 75.0

 

Center for forensic psychiatry--578.6 FTE positions....        66,767,900

 

   Average population.............................. 210.0

 

Revenue recapture......................................           750,000

 

IDEA, federal special education........................           120,000

 

Special maintenance....................................           332,500


 

Purchase of medical services for residents of

 

   hospitals and centers................................           445,600

 

Gifts and bequests for patient living and treatment

 

   environment..........................................         1,000,000

 

GROSS APPROPRIATION.................................... $    260,344,300

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

   Federal revenues:

 

Total other federal revenues...........................        29,921,200

 

   Special revenue funds:

 

CMHSP, purchase of state services contracts............       134,201,900

 

Other local revenues...................................        17,494,500

 

Total private revenues.................................         1,000,000

 

Total other state restricted revenues..................        15,948,400

 

State general fund/general purpose..................... $     61,778,300

 

   Sec. 106. PUBLIC HEALTH ADMINISTRATION

 

   Full-time equated classified positions........... 91.7

 

Public health administration--7.3 FTE positions........ $      1,557,200

 

Minority health grants and contracts--3.0 FTE

 

   positions............................................           612,700

 

Promotion of healthy behaviors.........................           975,900

 

Vital records and health statistics--81.4 FTE

 

   positions............................................         9,442,800

 

GROSS APPROPRIATION.................................... $     12,588,600

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

Interdepartmental grant from the department of human


 

   services.............................................         1,171,500

 

   Federal revenues:

 

Total other federal revenues...........................         4,887,900

 

   Special revenue funds:

 

Total private revenues.................................           300,000

 

Total other state restricted revenues..................         4,974,700

 

State general fund/general purpose..................... $      1,254,500

 

   Sec. 107. HEALTH POLICY, REGULATION, AND

 

PROFESSIONS

 

   Full-time equated classified positions.......... 462.1

 

Health systems administration--199.6 FTE positions..... $     22,369,300

 

Emergency medical services program state staff--23.0

 

   FTE positions........................................        4,850,300

 

Radiological health administration--21.4 FTE positions.         3,179,700

 

Emergency medical services grants and services.........           660,000

 

Health professions--163.0 FTE positions................        26,945,900

 

Background check program--5.5 FTE positions............         2,720,500

 

Health policy and regulation administration--30.2

 

   FTE positions........................................         3,756,600

 

Nurse scholarship, education, and research

 

   program--3.0 FTE positions...........................         1,744,200

 

Certificate of need program administration--14.0 FTE

 

   positions............................................         2,071,100

 

Rural health services--1.0 FTE position................         1,410,300

 

Michigan essential health provider.....................           872,700

 

Primary care services--1.4 FTE positions...............         3,086,600

 

GROSS APPROPRIATION.................................... $     73,667,200


 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

Interdepartmental grant from the department of

 

   treasury, Michigan state hospital finance authority..           116,300

 

   Federal revenues:

 

Total other federal revenues...........................        25,410,200

 

   Special revenue funds:

 

Total local revenues...................................           100,000

 

Total private revenues.................................           455,000

 

Total other state restricted revenues..................        41,793,400

 

State general fund/general purpose..................... $      5,792,300

 

   Sec. 108. INFECTIOUS DISEASE CONTROL

 

   Full-time equated classified positions........... 50.7

 

AIDS prevention, testing, and care programs--12.7

 

   FTE positions........................................ $     59,449,300

 

Immunization local agreements..........................        11,975,200

 

Immunization program management and field

 

   support--15.0 FTE positions..........................         1,786,300

 

Pediatric AIDS prevention and control--1.0 FTE

 

   position.............................................         1,231,400

 

Sexually transmitted disease control local agreements..         3,360,700

 

Sexually transmitted disease control management and

 

   field support--22.0 FTE positions....................         3,743,300

 

GROSS APPROPRIATION.................................... $     81,546,200

 

    Appropriated from:

 

   Federal revenues:

 

Total other federal revenues...........................        43,490,200


 

   Special revenue funds:

 

Total private revenues.................................        27,707,700

 

Total other state restricted revenues..................         7,470,600

 

State general fund/general purpose..................... $      2,877,700

 

   Sec. 109. LABORATORY SERVICES

 

   Full-time equated classified positions.......... 111.0

 

Laboratory services--111.0 FTE positions............... $      17,183,900

 

GROSS APPROPRIATION.................................... $     17,183,900

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

Interdepartmental grant from the department of

 

   environmental quality................................           471,900

 

   Federal revenues:

 

Total federal revenues.................................         2,092,300

 

   Special revenue funds:

 

Total other state restricted revenues..................         8,267,600

 

State general fund/general purpose..................... $      6,352,100

 

   Sec. 110. EPIDEMIOLOGY

 

   Full-time equated classified positions.......... 126.7

 

AIDS surveillance and prevention program...............         2,254,100

 

Asthma prevention and control--2.6 FTE positions.......           856,900

 

Bioterrorism preparedness--66.6 FTE positions..........        49,286,900

 

Epidemiology administration--40.0 FTE positions........         8,202,000

 

Lead abatement program--7.0 FTE positions..............         2,647,700

 

Newborn screening follow-up and treatment

 

   services--10.5 FTE positions.........................         5,337,800

 

Tuberculosis control and prevention....................           867,000


 

GROSS APPROPRIATION.................................... $     69,452,400

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................        61,271,300

 

   Special revenue funds:

 

Total private revenues.................................            25,000

 

Total other state restricted revenues..................         6,367,900

 

State general fund/general purpose..................... $      1,788,200

 

   Sec. 111. LOCAL HEALTH ADMINISTRATION AND GRANTS

 

   Full-time equated classified positions............ 2.0

 

Essential local public health services................. $     37,386,100

 

Implementation of 1993 PA 133, MCL 333.17015...........            20,000

 

Local health services--2.0 FTE positions...............           500,000

 

Medicaid outreach cost reimbursement to local health

 

   departments..........................................         9,000,000

 

GROSS APPROPRIATION.................................... $     46,906,100

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................         9,500,000

 

   Special revenue funds:

 

Total local revenues...................................         5,150,000

 

State general fund/general purpose..................... $     32,256,100

 

   Sec. 112. CHRONIC DISEASE AND INJURY PREVENTION AND

 

HEALTH PROMOTION

 

   Full-time equated classified positions........... 75.5

 

Cancer prevention and control program--12.0 FTE

 

   positions............................................ $     14,298,200


 

Chronic disease control and health promotion

 

   administration--33.4 FTE positions...................         5,950,100

 

Diabetes and kidney program--12.2 FTE positions........         1,777,600

 

Injury control intervention project....................           170,000

 

Public health traffic safety coordination--1.0 FTE

 

   position.............................................            87,500

 

Smoking prevention program--14.0 FTE positions.........         2,075,000

 

Violence prevention--2.9 FTE positions.................         2,123,200

 

GROSS APPROPRIATION.................................... $     26,481,600

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................        23,969,200

 

   Special revenue funds:

 

Total private revenues.................................            61,600

 

Total other state restricted revenues..................           649,700

 

State general fund/general purpose..................... $      1,801,100

 

   Sec. 113. FAMILY, MATERNAL, AND CHILDREN'S HEALTH

 

SERVICES

 

   Full-time equated classified positions........... 55.1

 

Childhood lead program--6.0 FTE positions.............. $      1,598,400

 

Dental programs--3.0 FTE positions.....................           992,000

 

Dental program for persons with developmental

 

   disabilities.........................................           151,000

 

Family, maternal, and children's health services

 

   administration--43.6 FTE positions...................         6,047,700

 

Family planning local agreements.......................         9,085,700

 

Local MCH services.....................................         7,018,100


 

Pregnancy prevention program...........................           602,100

 

Prenatal care outreach and service delivery support....            42,500

 

Special projects--2.5 FTE positions....................         8,546,500

 

Sudden infant death syndrome program...................           321,300

 

GROSS APPROPRIATION.................................... $     34,405,300

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................        30,552,600

 

   Special revenue funds:

 

Total local revenues...................................            75,000

 

State general fund/general purpose..................... $      3,777,700

 

   Sec. 114. WOMEN, INFANTS, AND CHILDREN FOOD AND

 

NUTRITION PROGRAM

 

   Full-time equated classified positions........... 45.0

 

Women, infants, and children program administration

 

   and special projects--45.0 FTE positions............. $     13,825,200

 

Women, infants, and children program local

 

   agreements and food costs............................       254,200,800

 

GROSS APPROPRIATION.................................... $    268,026,000

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................       209,412,200

 

   Special revenue funds:

 

Total private revenues.................................        58,613,800

 

State general fund/general purpose..................... $              0

 

   Sec. 115. CHILDREN'S SPECIAL HEALTH CARE SERVICES

 

   Full-time equated classified positions........... 47.8


 

Children's special health care services

 

   administration--45.0 FTE positions................... $      5,245,700

 

Bequests for care and services--2.8 FTE positions......         1,511,400

 

Outreach and advocacy..................................         3,773,500

 

Nonemergency medical transportation....................         2,679,300

 

Medical care and treatment.............................       278,471,300

 

GROSS APPROPRIATION.................................... $    291,681,200

 

    Appropriated from:

 

   Federal revenues:

 

Total other federal revenues...........................       166,222,000

 

   Special revenue funds:

 

Total private revenues.................................           996,800

 

Total other state restricted revenues..................         3,843,600

 

State general fund/general purpose..................... $    120,618,800

 

   Sec. 116. CRIME VICTIM SERVICES COMMISSION

 

   Full-time equated classified positions........... 13.0

 

Grants administration services--13.0 FTE positions..... $      1,811,300

 

Justice assistance grants..............................        19,106,100

 

Crime victim rights services grants....................        16,570,000

 

GROSS APPROPRIATION.................................... $     37,487,400

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................        23,467,200

 

   Special revenue funds:

 

Total other state restricted revenues..................        14,020,200

 

State general fund/general purpose..................... $              0

 

   Sec. 117. OFFICE OF SERVICES TO THE AGING


 

   Full-time equated classified positions........... 43.5

 

Office of services to aging administration--43.5 FTE

 

   positions............................................ $      6,408,800

 

Community services.....................................        34,289,000

 

Nutrition services.....................................        35,430,200

 

Foster grandparent volunteer program...................         1,898,600

 

Retired and senior volunteer program...................           533,300

 

Senior companion volunteer program.....................         1,363,700

 

Employment assistance..................................         3,792,500

 

Respite care program...................................         5,868,700

 

GROSS APPROPRIATION.................................... $     89,584,800

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................        57,159,200

 

   Special revenue funds:

 

Total private revenues.................................           677,500

 

Merit award trust fund.................................         4,468,700

 

Total other state restricted revenues..................         1,400,000

 

State general fund/general purpose..................... $     25,879,400

 

   Sec. 118. MEDICAL SERVICES ADMINISTRATION

 

   Full-time equated classified positions.......... 415.0

 

Medical services administration--415.0 FTE positions... $     65,057,000

 

Facility inspection contract...........................           132,800

 

MIChild administration.................................         4,327,800

 

GROSS APPROPRIATION.................................... $     69,517,600

 

    Appropriated from:

 

   Federal revenues:


 

Total other federal revenues...........................        47,476,900

 

   Special revenue funds:

 

Total local revenues...................................           105,900

 

Total private revenues.................................           100,000

 

Total other state restricted revenues..................           110,100

 

State general fund/general purpose..................... $     21,724,700

 

   Sec. 119. MEDICAL SERVICES

 

Hospital services and therapy.......................... $  1,138,897,800

 

Hospital disproportionate share payments...............        45,000,100

 

Physician services.....................................       290,369,500

 

Medicare premium payments..............................       409,169,400

 

Pharmaceutical services................................       318,717,600

 

Home health services...................................         6,791,100

 

Hospice services.......................................       144,637,700

 

Transportation.........................................        15,009,800

 

Auxiliary medical services.............................         6,252,200

 

Dental services........................................       158,500,800

 

Ambulance services.....................................         9,271,600

 

Long-term care services................................     1,717,837,500

 

Medicaid home- and community-based services waiver.....       205,940,500

 

Adult home help services...............................       289,032,900

 

Personal care services.................................        14,421,500

 

Program of all-inclusive care for the elderly..........        30,707,800

 

Health plan services...................................     3,936,122,200

 

MIChild program........................................        51,753,100

 

Plan first family planning waiver......................        13,089,200

 

Medicaid adult benefits waiver.........................       105,877,700


 

Special indigent care payments.........................        88,518,500

 

Federal Medicare pharmaceutical program................       185,599,300

 

Maternal and child health..............................        20,279,500

 

Subtotal basic medical services program................     9,201,797,300

 

School-based services..................................        91,296,500

 

Special Medicaid reimbursement.........................       329,823,200

 

Subtotal special medical services payments.............       421,119,700

 

GROSS APPROPRIATION.................................... $  9,622,917,000

 

    Appropriated from:

 

   Federal revenues:

 

Total other federal revenues...........................     6,337,148,100

 

   Special revenue funds:

 

Total local revenues...................................        66,070,000

 

Total private revenues.................................         6,332,200

 

Merit award trust fund.................................        82,275,800

 

Total other state restricted revenues..................     1,933,691,000

 

State general fund/general purpose..................... $  1,197,399,900

 

   Sec. 120. INFORMATION TECHNOLOGY

 

Information technology services and projects........... $     34,881,700

 

Michigan Medicaid information system...................        25,723,700

 

GROSS APPROPRIATION.................................... $     60,605,400

 

    Appropriated from:

 

   Federal revenues:

 

Total federal revenues.................................        44,191,200

 

   Special revenue funds:

 

Total other state restricted revenues..................         3,226,200

 

State general fund/general purpose..................... $     13,188,000


 

 

 

 

 

PART 2

 

PROVISIONS CONCERNING APPROPRIATIONS

 

FOR FISCAL YEAR 2011-2012

 

GENERAL SECTIONS

 

     Sec. 201. Pursuant to section 30 of article IX of the state

 

constitution of 1963, total state spending from state resources

 

under part 1 for fiscal year 2011-2012 is $4,797,410,600.00 and

 

state spending from state resources to be paid to local units of

 

government for fiscal year 2011-2012 is $1,333,598,700.00. The

 

itemized statement below identifies appropriations from which

 

spending to local units of government will occur:

 

DEPARTMENT OF COMMUNITY HEALTH

 

MENTAL HEALTH/SUBSTANCE ABUSE SERVICES ADMINISTRATION

 

  AND SPECIAL PROJECTS

 

Community residential and support services............. $        170,100

 

Housing and support services...........................           599,800

 

COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES PROGRAMS

 

Community substance abuse prevention, education, and

 

    treatment programs.................................. $     12,792,500

 

Medicaid mental health services........................       650,333,100

 

Community mental health non-Medicaid services..........       268,839,200

 

Medicaid adult benefits waiver.........................        10,854,200

 

Mental health services for special populations.........         6,873,800

 

Medicaid substance abuse services......................        14,360,200

 

Children's waiver home care program....................         5,906,800


 

Nursing home PASARR....................................         2,717,200

 

Health policy, regulation, and professions

 

Primary care services.................................. $         88,900

 

INFECTIOUS DISEASE CONTROL

 

AIDS prevention, testing, and care programs............ $      1,000,000

 

Sexually transmitted disease control local agreements..           226,200

 

LABORATORY SERVICES

 

Laboratory services.................................... $         13,700

 

LOCAL HEALTH ADMINISTRATION AND GRANTS

 

Implementation of 1993 PA 133, MCL 333.17015........... $          8,000

 

Essential local public health services.................        32,236,100

 

CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH PROMOTION

 

Cancer prevention and control program.................. $        450,000

 

Chronic disease control and health promotion

 

administration ........................................           261,600

 

Diabetes and kidney program............................            54,500

 

Smoking prevention program.............................           800,000

 

FAMILY, MATERNAL, AND CHILDREN'S HEALTH SERVICES

 

Childhood lead program................................. $         51,100

 

Pregnancy prevention program...........................            90,000

 

CHILDREN'S SPECIAL HEALTH CARE SERVICES

 

Medical care and treatment............................. $        895,700

 

Outreach and advocacy..................................         1,237,500

 

MEDICAL SERVICES

 

Dental services........................................ $      2,005,600

 

Long-term care services................................      269,214,200

 

Transportation.........................................         2,572,700


 

Medicaid adult benefits waiver.........................         6,186,600

 

Hospital services and therapy..........................         5,316,800

 

Physician services.....................................         4,251,500

 

OFFICE OF SERVICES TO THE AGING

 

Community services..................................... $     11,310,000

 

Nutrition services.....................................         8,787,000

 

Foster grandparent volunteer program...................           577,800

 

Retired and senior volunteer program...................           148,800

 

Senior companion volunteer program.....................           182,700

 

Respite care program...................................         5,384,800

 

CRIME VICTIM SERVICES COMMISSION

 

Crime victim rights services grants.................... $       6,800,000

 

TOTAL OF PAYMENTS TO LOCAL UNITS

 

OF GOVERNMENT.......................................... $   1,333,598,700

 

     Sec. 202. (1) The appropriations authorized under this act are

 

subject to the management and budget act, 1984 PA 431, MCL 18.1101

 

to 18.1594.

 

     (2) Funds for which the state is acting as the custodian or

 

agent are not subject to annual appropriation.

 

     Sec. 203. As used in this act:

 

     (a) "AIDS" means acquired immunodeficiency syndrome.

 

     (b) "ARRA" means the American recovery and reinvestment act of

 

2009, Public Law 111-5.

 

     (c) "CMHSP" means a community mental health services program

 

as that term is defined in section 100a of the mental health code,

 

1974 PA 258, MCL 330.1100a.

 

     (d) "Current fiscal year" means the fiscal year ending


 

September 30, 2012.

 

     (e) "Department" means the department of community health.

 

     (f) "Director" means the director of the department.

 

     (g) "DSH" means disproportionate share hospital.

 

     (h) "EPSDT" means early and periodic screening, diagnosis, and

 

treatment.

 

     (i) "Federal health care reform legislation" means the patient

 

protection and affordable care act, Public Law 111-148, and the

 

health care and education reconciliation act of 2010, Public Law

 

111-152.

 

     (j) "Federal poverty level" means the poverty guidelines

 

published annually in the federal register by the United States

 

department of health and human services under its authority to

 

revise the poverty line under 42 USC 9902.

 

     (k) "FMAP" means federal medical assistance percentages.

 

     (l) "FTE" means full-time equated.

 

     (m) "GME" means graduate medical education.

 

     (n) "Health plan" means, at a minimum, an organization that

 

meets the criteria for delivering the comprehensive package of

 

services under the department's comprehensive health plan.

 

     (o) "HEDIS" means healthcare effectiveness data and

 

information set.

 

     (p) "HIV/AIDS" means human immunodeficiency virus/acquired

 

immune deficiency syndrome.

 

     (q) "HMO" means health maintenance organization.

 

     (r) "IDEA" means the individuals with disabilities education

 

act, 20 USC 1400 to 1482.


 

     (s) "IDG" means interdepartmental grant.

 

     (t) "MCH" means maternal and child health.

 

     (u) "MIChild" means the program described in section 1670.

 

     (v) "MIHP" means the maternal infant health program.

 

     (w) "PASARR" means the preadmission screening and annual

 

resident review required under the omnibus budget reconciliation

 

act of 1987, section 1919(e)(7) of the social security act, and 42

 

USC 1396r.

 

     (x) "PIHP" means a specialty prepaid inpatient health plan for

 

Medicaid mental health services, services to individuals with

 

developmental disabilities, and substance abuse services as

 

described in section 232b of the mental health code, 1974 PA 258,

 

MCL 330.1232b.

 

     (y) "Title XVIII" and "Medicare" mean title XVIII of the

 

social security act, 42 USC 1395 to 1395iii.

 

     (z) "Title XIX" and "Medicaid" mean title XIX of the social

 

security act, 42 USC 1396 to 1396w-2.

 

     (aa) "Title XX" means title XX of the social security act, 42

 

USC 1397 to 1397f.

 

     (bb) "WIC program" means the women, infants, and children

 

supplemental nutrition program.

 

     Sec. 205. (1) A hiring freeze is imposed on the state

 

classified civil service. State departments and agencies are

 

prohibited from hiring any new full-time state classified civil

 

service employees and prohibited from filling any vacant state

 

classified civil service positions. This hiring freeze does not

 

apply to internal transfers of classified employees from 1 position


 

to another within a department.

 

     (2) The state budget director may grant exceptions to this

 

hiring freeze when the state budget director believes that the

 

hiring freeze will render a state department or agency unable to

 

deliver basic services, will cause loss of revenue to the state,

 

will result in the inability of the state to receive federal funds,

 

or will necessitate additional expenditures that exceed any savings

 

from maintaining a vacancy. The state budget director shall report

 

annually to the chairpersons of the senate and house standing

 

committees on appropriations the number of exceptions to the hiring

 

freeze approved during the previous quarter and the reasons to

 

justify the exception.

 

     Sec. 206. (1) In addition to the funds appropriated in part 1,

 

there is appropriated an amount not to exceed $100,000,000.00 for

 

federal contingency funds. These funds are not available for

 

expenditure until they have been transferred to another line item

 

in this act under section 393(2) of the management and budget act,

 

1984 PA 431, MCL 18.1393.

 

     (2) In addition to the funds appropriated in part 1, there is

 

appropriated an amount not to exceed $20,000,000.00 for state

 

restricted contingency funds. These funds are not available for

 

expenditure until they have been transferred to another line item

 

in this act under section 393(2) of the management and budget act,

 

1984 PA 431, MCL 18.1393.

 

     (3) In addition to the funds appropriated in part 1, there is

 

appropriated an amount not to exceed $20,000,000.00 for local

 

contingency funds. These funds are not available for expenditure


 

until they have been transferred to another line item in this act

 

under section 393(2) of the management and budget act, 1984 PA 431,

 

MCL 18.1393.

 

     (4) In addition to the funds appropriated in part 1, there is

 

appropriated an amount not to exceed $10,000,000.00 for private

 

contingency funds. These funds are not available for expenditure

 

until they have been transferred to another line item in this act

 

under section 393(2) of the management and budget act, 1984 PA 431,

 

MCL 18.1393.

 

     Sec. 208. The department shall use the Internet to fulfill the

 

reporting requirements of this act. This requirement may include

 

transmission of reports via electronic mail to the recipients

 

identified for each reporting requirement, or it may include

 

placement of reports on the Internet or Intranet site.

 

     Sec. 209. Funds appropriated in part 1 shall not be used for

 

the purchase of foreign goods or services, or both, if

 

competitively priced and of comparable quality American goods or

 

services, or both, are available. Preference shall be given to

 

goods or services, or both, manufactured or provided by Michigan

 

businesses if they are competitively priced and of comparable

 

quality. In addition, preference shall be given to goods or

 

services, or both, that are manufactured or provided by Michigan

 

businesses owned and operated by veterans if they are competitively

 

priced and of comparable quality.

 

     Sec. 210. The director shall take all reasonable steps to

 

ensure businesses in deprived and depressed communities compete for

 

and perform contracts to provide services or supplies, or both. The


 

director shall strongly encourage firms with which the department

 

contracts to subcontract with certified businesses in depressed and

 

deprived communities for services, supplies, or both.

 

     Sec. 211. (1) If the revenue collected by the department from

 

fees and collections exceeds the amount appropriated in part 1, the

 

revenue may be carried forward with the approval of the state

 

budget director into the subsequent fiscal year. The revenue

 

carried forward under this section shall be used as the first

 

source of funds in the subsequent fiscal year.

 

     (2) The department shall provide a report to the senate and

 

house appropriations subcommittees on community health and the

 

senate and house fiscal agencies on the balance of each of the

 

restricted funds administered by the department as of September 30

 

of the current fiscal year.

 

     Sec. 212. (1) On or before February 1 of the current fiscal

 

year, the department shall report to the house and senate

 

appropriations subcommittees on community health, the house and

 

senate fiscal agencies, and the state budget director on the

 

detailed name and amounts of federal, restricted, private, and

 

local sources of revenue that support the appropriations in each of

 

the line items in part 1 of this act.

 

     (2) Upon the release of the next fiscal year executive budget

 

recommendation, the department shall report to the same parties in

 

subsection (1) on the amounts and detailed sources of federal,

 

restricted, private, and local revenue proposed to support the

 

total funds appropriated in each of the line items in part 1 of the

 

next fiscal year executive budget proposal.


 

     Sec. 214. The use of state restricted tobacco tax revenue

 

received for the purpose of tobacco prevention, education, and

 

reduction efforts and deposited in the healthy Michigan fund shall

 

not be used for lobbying as defined in section 5 of 1978 PA 472,

 

MCL 4.415, and shall not be used in attempting to influence the

 

decisions of the legislature, the governor, or any state agency.

 

     Sec. 215. (1) The department shall report to the house and

 

senate appropriations subcommittees on the budget for the

 

department, the joint committee on administrative rules, and the

 

senate and house fiscal agencies by no later than April 1 of the

 

current fiscal year on each specific policy change made by the

 

department to implement a public act affecting that department that

 

took effect during the preceding calendar year.

 

     (2) Funds appropriated in part 1 shall not be used by the

 

department to adopt a rule that will apply to a small business and

 

that will have a disproportionate economic impact on small

 

businesses because of the size of those businesses if the

 

department fails to reduce the disproportionate economic impact of

 

the rule on small businesses as provided under section 40 of the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.240.

 

     (3) As used in this section:

 

     (a) "Rule" means that term as defined under section 7 of the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.207.

 

     (b) "Small business" means that term as defined under section

 

7a of the administrative procedures act of 1969, 1969 PA 306, MCL

 

24.207a.

 

     Sec. 216. (1) In addition to funds appropriated in part 1 for


 

all programs and services, there is appropriated for write-offs of

 

accounts receivable, deferrals, and for prior year obligations in

 

excess of applicable prior year appropriations, an amount equal to

 

total write-offs and prior year obligations, but not to exceed

 

amounts available in prior year revenues.

 

     (2) The department's ability to satisfy appropriation

 

deductions in part 1 shall not be limited to collections and

 

accruals pertaining to services provided in the current fiscal

 

year, but shall also include reimbursements, refunds, adjustments,

 

and settlements from prior years.

 

     (3) The department shall report by March 15 of the current

 

fiscal year to the house of representatives and senate

 

appropriations subcommittees on community health on all

 

reimbursements, refunds, adjustments, and settlements from prior

 

years.

 

     Sec. 218. The department shall include the following in its

 

annual list of proposed basic health services as required in part

 

23 of the public health code, 1978 PA 368, MCL 333.2301 to

 

333.2321:

 

     (a) Immunizations.

 

     (b) Communicable disease control.

 

     (c) Sexually transmitted disease control.

 

     (d) Tuberculosis control.

 

     (e) Prevention of gonorrhea eye infection in newborns.

 

     (f) Screening newborns for the conditions listed in section

 

5431 of the public health code, 1978 PA 368, MCL 333.5431, or

 

recommended by the newborn screening quality assurance advisory


 

committee created under section 5430 of the public health code,

 

1978 PA 368, MCL 333.5430.

 

     (g) Community health annex of the Michigan emergency

 

management plan.

 

     (h) Prenatal care.

 

     Sec. 219. (1) The department may contract with the Michigan

 

public health institute for the design and implementation of

 

projects and for other public health-related activities prescribed

 

in section 2611 of the public health code, 1978 PA 368, MCL

 

333.2611. The department may develop a master agreement with the

 

institute to carry out these purposes for up to a 3-year period.

 

The department shall report to the house and senate appropriations

 

subcommittees on community health, the house and senate fiscal

 

agencies, and the state budget director on or before November 1 and

 

May 1 of the current fiscal year all of the following:

 

     (a) A detailed description of each funded project.

 

     (b) The amount allocated for each project, the appropriation

 

line item from which the allocation is funded, and the source of

 

financing for each project.

 

     (c) The expected project duration.

 

     (d) A detailed spending plan for each project, including a

 

list of all subgrantees and the amount allocated to each

 

subgrantee.

 

     (2) On or before September 30 of the current fiscal year, the

 

department shall provide to the same parties listed in subsection

 

(1) a copy of all reports, studies, and publications produced by

 

the Michigan public health institute, its subcontractors, or the


 

department with the funds appropriated in part 1 and allocated to

 

the Michigan public health institute.

 

     Sec. 220. All contracts with the Michigan public health

 

institute funded with appropriations in part 1 shall include a

 

requirement that the Michigan public health institute submit to

 

financial and performance audits by the state auditor general of

 

projects funded with state appropriations.

 

     Sec. 223. The department may establish and collect fees for

 

publications, videos and related materials, conferences, and

 

workshops. Collected fees shall be used to offset expenditures to

 

pay for printing and mailing costs of the publications, videos and

 

related materials, and costs of the workshops and conferences. The

 

department shall not collect fees under this section that exceed

 

the cost of the expenditures.

 

     Sec. 264. (1) Upon submission of a Medicaid waiver, a Medicaid

 

state plan amendment, or a similar proposal to the centers for

 

Medicare and Medicaid services, the department shall notify the

 

house and senate appropriations subcommittees on community health

 

and the house and senate fiscal agencies of the submission.

 

     (2) The department shall provide written or verbal biannual

 

reports to the senate and house appropriations subcommittees on

 

community health and the senate and house fiscal agencies

 

summarizing the status of any new or ongoing discussions with the

 

centers for Medicare and Medicaid services or the federal

 

department of health and human services regarding potential or

 

future Medicaid waiver applications.

 

     Sec. 265. The departments and agencies receiving


 

appropriations in part 1 shall receive and retain copies of all

 

reports funded from appropriations in part 1. Federal and state

 

guidelines for short-term and long-term retention of records shall

 

be followed.

 

     Sec. 266. (1) Due to the current budgetary problems in this

 

state, out-of-state travel shall be limited to situations in which

 

1 or more of the following conditions apply:

 

     (a) The travel is required by legal mandate or court order or

 

for law enforcement purposes.

 

     (b) The travel is necessary to protect the health or safety of

 

Michigan citizens or visitors or to assist other states in similar

 

circumstances.

 

     (c) The travel is necessary to produce budgetary savings or to

 

increase state revenues, including protecting existing federal

 

funds or securing additional federal funds.

 

     (d) The travel is necessary to comply with federal

 

requirements.

 

     (e) The travel is necessary to secure specialized training for

 

staff that is not available within this state.

 

     (f) The travel is financed entirely by federal or nonstate

 

funds.

 

     (2) Not later than January 1 of each year, each department

 

shall prepare a travel report listing all travel by classified and

 

unclassified employees outside this state in the immediately

 

preceding fiscal year that was funded in whole or in part with

 

funds appropriated in the department's budget. The report shall be

 

submitted to the senate and house standing committees on


 

appropriations, the senate and house fiscal agencies, and the state

 

budget director. The report shall include the following

 

information:

 

     (a) The name of each individual receiving reimbursement for

 

travel outside this state or whose travel costs were paid by this

 

state.

 

     (b) The destination of each travel occurrence.

 

     (c) The dates of each travel occurrence.

 

     (d) A brief statement of the reason for each travel

 

occurrence.

 

     (e) The transportation and related costs of each travel

 

occurrence, including the proportion funded with state general

 

fund/general purpose revenues, the proportion funded with state

 

restricted revenues, the proportion funded with federal revenues,

 

and the proportion funded with other revenues.

 

     (f) A total of all out-of-state travel funded for the

 

immediately preceding fiscal year.

 

     Sec. 267. A department or state agency shall not take

 

disciplinary action against an employee for communicating with a

 

member of the legislature or his or her staff.

 

     Sec. 270. Within 180 days after receipt of the notification

 

from the attorney general's office of a legal action in which

 

expenses had been recovered pursuant to section 106(4) of the

 

social welfare act, 1939 PA 280, MCL 400.106, or any other statute

 

under which the department has the right to recover expenses, the

 

department shall submit a written report to the house and senate

 

appropriations subcommittees on community health, the house and


 

senate fiscal agencies, and the state budget office which includes,

 

at a minimum, all of the following:

 

     (a) The total amount recovered from the legal action.

 

     (b) The program or service for which the money was originally

 

expended.

 

     (c) Details on the disposition of the funds recovered such as

 

the appropriation or revenue account in which the money was

 

deposited.

 

     (d) A description of the facts involved in the legal action.

 

     Sec. 276. Funds appropriated in part 1 shall not be used by a

 

principal executive department, state agency, or authority to hire

 

a person to provide legal services that are the responsibility of

 

the attorney general. This prohibition does not apply to legal

 

services for bonding activities and for those activities that the

 

attorney general authorizes.

 

     Sec. 282. (1) The department, through its organizational units

 

responsible for departmental administration, operation, and

 

finance, shall establish uniform definitions, standards, and

 

instructions for the classification, allocation, assignment,

 

calculation, recording, and reporting of administrative costs by

 

the following entities:

 

     (a) Coordinating agencies on substance abuse and the Salvation

 

Army harbor light program that receive payment or reimbursement

 

from funds appropriated under section 104.

 

     (b) Area agencies on aging and local providers that receive

 

payment or reimbursement from funds appropriated under section 117.

 

     (2) By May 15 of the current fiscal year, the department shall


 

provide a written draft of its proposed definitions, standards, and

 

instructions to the house of representatives and senate

 

appropriations subcommittees on community health, the house and

 

senate fiscal agencies, and the state budget director.

 

     Sec. 287. Not later than December 1, 2011, the department

 

shall prepare and transmit a report that provides for estimates of

 

the total general fund/general purpose appropriation lapses at the

 

close of the previous fiscal year. This report shall summarize the

 

projected year-end general fund/general purpose appropriation

 

lapses by major departmental program or program areas. The report

 

shall be transmitted to the office of the state budget, the

 

chairpersons of the senate and house appropriations committees, and

 

the fiscal agencies.

 

     Sec. 292. (1) On a quarterly basis, the department shall

 

report on the number of full-time equated positions in pay status

 

by civil service classification to the senate and house of

 

representatives standing committees on appropriations subcommittees

 

on community health and the senate and house fiscal agencies.

 

     (2) From the funds appropriated in part 1, the department

 

shall develop, post, and maintain on a user-friendly and publicly

 

accessible Internet website all expenditures made by the department

 

within a fiscal year. The posting must include the purpose for

 

which each expenditure is made. Funds appropriated in part 1 from

 

the ARRA shall also be included on a publicly accessible website

 

maintained by the Michigan economic recovery office. The department

 

shall not provide financial information on its website under this

 

section if doing so would violate a federal or state law, rule,


 

regulation, or guideline that establishes privacy or security

 

standards applicable to that section.

 

     Sec. 294. (1) It is the intent of the legislature that, in

 

fiscal year 2012-2013, funding appropriated in fiscal year 2011-

 

2012 for all of the following line items and programs shall be

 

allocated on a competitive basis:

 

     (a) The mental health services for special populations line

 

item.

 

     (b) The multicultural grants and clinic grants funded from the

 

primary care services line item.

 

     (c) The GF/GP grants funded from the special projects line

 

item.

 

     (d) The injury control intervention line item.

 

     (e) School health centers funded from the health plan services

 

line item.

 

     (2) Each program identified in subsection (1) shall only be

 

eligible for the funding described in subsection (1) if it provides

 

information to the department on program allocations, goals, and

 

outcomes by July 1 of the current fiscal year.

 

     Sec. 295. It is the intent of the legislature that funds

 

appropriated in this act shall not be spent on efforts to implement

 

the federal health care reform legislation.

 

 

 

COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES PROGRAMS

 

     Sec. 401. Funds appropriated in part 1 are intended to support

 

a system of comprehensive community mental health services under

 

the full authority and responsibility of local CMHSPs or PIHPs. The


 

department shall ensure that each CMHSP or PIHP provides all of the

 

following:

 

     (a) A system of single entry and single exit.

 

     (b) A complete array of mental health services that includes,

 

but is not limited to, all of the following services: residential

 

and other individualized living arrangements, outpatient services,

 

acute inpatient services, and long-term, 24-hour inpatient care in

 

a structured, secure environment.

 

     (c) The coordination of inpatient and outpatient hospital

 

services through agreements with state-operated psychiatric

 

hospitals, units, and centers in facilities owned or leased by the

 

state, and privately-owned hospitals, units, and centers licensed

 

by the state pursuant to sections 134 through 149b of the mental

 

health code, 1974 PA 258, MCL 330.1134 to 330.1149b.

 

     (d) Individualized plans of service that are sufficient to

 

meet the needs of individuals, including those discharged from

 

psychiatric hospitals or centers, and that ensure the full range of

 

recipient needs is addressed through the CMHSP's or PIHP's program

 

or through assistance with locating and obtaining services to meet

 

these needs.

 

     (e) A system of case management or care management to monitor

 

and ensure the provision of services consistent with the

 

individualized plan of services or supports.

 

     (f) A system of continuous quality improvement.

 

     (g) A system to monitor and evaluate the mental health

 

services provided.

 

     (h) A system that serves at-risk and delinquent youth as


 

required under the provisions of the mental health code, 1974 PA

 

258, MCL 330.1001 to 330.2106.

 

     Sec. 402. (1) From funds appropriated in part 1, final

 

authorizations to CMHSPs or PIHPs shall be made upon the execution

 

of contracts between the department and CMHSPs or PIHPs. The

 

contracts shall contain an approved plan and budget as well as

 

policies and procedures governing the obligations and

 

responsibilities of both parties to the contracts. Each contract

 

with a CMHSP or PIHP that the department is authorized to enter

 

into under this subsection shall include a provision that the

 

contract is not valid unless the total dollar obligation for all of

 

the contracts between the department and the CMHSPs or PIHPs

 

entered into under this subsection for the current fiscal year does

 

not exceed the amount of money appropriated in part 1 for the

 

contracts authorized under this subsection.

 

     (2) The department shall immediately report to the senate and

 

house appropriations subcommittees on community health, the senate

 

and house fiscal agencies, and the state budget director if either

 

of the following occurs:

 

     (a) Any new contracts with CMHSPs or PIHPs that would affect

 

rates or expenditures are enacted.

 

     (b) Any amendments to contracts with CMHSPs or PIHPs that

 

would affect rates or expenditures are enacted.

 

     (3) The report required by subsection (2) shall include

 

information about the changes and their effects on rates and

 

expenditures.

 

     Sec. 403. (1) From the funds appropriated in part 1 for mental


 

health services for special populations, the department shall

 

ensure that CMHSPs or PIHPs meet with multicultural service

 

providers to develop a workable framework for contracting, service

 

delivery, and reimbursement.

 

     (2) Funds appropriated in part 1 for mental health services

 

for special populations shall not be utilized for services provided

 

to illegal immigrants, fugitive felons, and individuals who are not

 

residents of this state. The department shall maintain contracts

 

with recipients of multicultural services grants that mandate

 

grantees establish that recipients of services are legally residing

 

in the United States. An exception to the contractual provision

 

shall be allowed to address individuals presenting with emergent

 

mental health conditions.

 

     (3) The department shall require an annual report from the

 

independent organizations that receive mental health services for

 

special populations funding. The annual report, due January 1 of

 

the current fiscal year, shall include specific information on

 

services and programs provided, the client base to which the

 

services and programs were provided, information on any wrap around

 

services provided, and the expenditures for those services. The

 

department shall provide the annual reports to the senate and house

 

appropriations subcommittees on community health and the senate and

 

house fiscal agencies.

 

     Sec. 404. (1) Not later than May 31 of the current fiscal

 

year, the department shall provide a report on the community mental

 

health services programs to the members of the house and senate

 

appropriations subcommittees on community health, the house and


 

senate fiscal agencies, and the state budget director that includes

 

the information required by this section.

 

     (2) The report shall contain information for each CMHSP or

 

PIHP and a statewide summary, each of which shall include at least

 

the following information:

 

     (a) A demographic description of service recipients which,

 

minimally, shall include reimbursement eligibility, client

 

population, age, ethnicity, housing arrangements, and diagnosis.

 

     (b) Per capita expenditures by client population group.

 

     (c) Financial information that, minimally, includes a

 

description of funding authorized; expenditures by client group and

 

fund source; and cost information by service category, including

 

administration. Service category includes all department-approved

 

services.

 

     (d) Data describing service outcomes that includes, but is not

 

limited to, an evaluation of consumer satisfaction, consumer

 

choice, and quality of life concerns including, but not limited to,

 

housing and employment.

 

     (e) Information about access to community mental health

 

services programs that includes, but is not limited to, the

 

following:

 

     (i) The number of people receiving requested services.

 

     (ii) The number of people who requested services but did not

 

receive services.

 

     (f) The number of second opinions requested under the code and

 

the determination of any appeals.

 

     (g) An analysis of information provided by CMHSPs in response


 

to the needs assessment requirements of the mental health code,

 

1974 PA 258, MCL 330.1001 to 330.2106, including information about

 

the number of individuals in the service delivery system who have

 

requested and are clinically appropriate for different services.

 

     (h) Lapses and carryforwards during the immediately preceding

 

fiscal year for CMHSPs or PIHPs.

 

     (i) Information about contracts for mental health services

 

entered into by CMHSPs or PIHPs with providers, including, but not

 

limited to, all of the following:

 

     (i) The amount of the contract, organized by type of service

 

provided.

 

     (ii) Payment rates, organized by the type of service provided.

 

     (iii) Administrative costs for services provided to CMHSPs or

 

PIHPs.

 

     (j) Information on the community mental health Medicaid

 

managed care program, including, but not limited to, both of the

 

following:

 

     (i) Expenditures by each CMHSP or PIHP organized by Medicaid

 

eligibility group, including per eligible individual expenditure

 

averages.

 

     (ii) Performance indicator information required to be submitted

 

to the department in the contracts with CMHSPs or PIHPs.

 

     (k) An estimate of the number of direct care workers in local

 

residential settings and paraprofessional and other nonprofessional

 

direct care workers in settings where skill building, community

 

living supports and training, and personal care services are

 

provided by CMHSPs or PIHPs as of September 30 of the prior fiscal


 

year employed directly or through contracts with provider

 

organizations.

 

     (3) The department shall include data reporting requirements

 

listed in subsection (2) in the annual contract with each

 

individual CMHSP or PIHP.

 

     (4) The department shall take all reasonable actions to ensure

 

that the data required are complete and consistent among all CMHSPs

 

or PIHPs.

 

     Sec. 407. (1) The amount appropriated in part 1 for substance

 

abuse prevention, education, and treatment grants shall be expended

 

for contracting with coordinating agencies. Coordinating agencies

 

shall work with CMHSPs or PIHPs to coordinate care and services

 

provided to individuals with severe and persistent mental illness

 

and substance abuse diagnoses.

 

     (2) The department shall approve coordinating agency fee

 

schedules for providing substance abuse services and charge

 

participants in accordance with their ability to pay.

 

     (3) It is the intent of the legislature that the coordinating

 

agencies continue current efforts to collaborate on the delivery of

 

services to those clients with mental illness and substance abuse

 

diagnoses.

 

     (4) Coordinating agencies that are located completely within

 

the boundary of a PIHP shall conduct a study of the administrative

 

costs and efficiencies associated with consolidation with that

 

PIHP. If that coordinating agency realizes an administrative cost

 

savings of 5% or greater of their current costs, then that

 

coordinating agency shall initiate discussions regarding a


 

potential merger in accordance with section 6226 of the public

 

health code, 1978 PA 368, MCL 333.6226. The department shall report

 

to the legislature by April 1 of the current fiscal year on any

 

such discussions.

 

     Sec. 408. (1) By April 1 of the current fiscal year, the

 

department shall report the following data from the prior fiscal

 

year on substance abuse prevention, education, and treatment

 

programs to the senate and house appropriations subcommittees on

 

community health, the senate and house fiscal agencies, and the

 

state budget office:

 

     (a) Expenditures stratified by coordinating agency, by central

 

diagnosis and referral agency, by fund source, by subcontractor, by

 

population served, and by service type. Additionally, data on

 

administrative expenditures by coordinating agency shall be

 

reported.

 

     (b) Expenditures per state client, with data on the

 

distribution of expenditures reported using a histogram approach.

 

     (c) Number of services provided by central diagnosis and

 

referral agency, by subcontractor, and by service type.

 

Additionally, data on length of stay, referral source, and

 

participation in other state programs.

 

     (d) Collections from other first- or third-party payers,

 

private donations, or other state or local programs, by

 

coordinating agency, by subcontractor, by population served, and by

 

service type.

 

     (2) The department shall take all reasonable actions to ensure

 

that the required data reported are complete and consistent among


 

all coordinating agencies.

 

     Sec. 412. The department shall contract directly with the

 

Salvation Army harbor light program to provide non-Medicaid

 

substance abuse services.

 

     Sec. 418. On or before the tenth of each month, the department

 

shall report to the senate and house appropriations subcommittees

 

on community health, the senate and house fiscal agencies, and the

 

state budget director on the amount of funding paid to PIHPs to

 

support the Medicaid managed mental health care program in the

 

preceding month. The information shall include the total paid to

 

each PIHP, per capita rate paid for each eligibility group for each

 

PIHP, and number of cases in each eligibility group for each PIHP,

 

and year-to-date summary of eligibles and expenditures for the

 

Medicaid managed mental health care program.

 

     Sec. 424. Each PIHP that contracts with the department to

 

provide services to the Medicaid population shall adhere to the

 

following timely claims processing and payment procedure for claims

 

submitted by health professionals and facilities:

 

     (a) A "clean claim" as described in section 111i of the social

 

welfare act, 1939 PA 280, MCL 400.111i, shall be paid within 45

 

days after receipt of the claim by the PIHP. A clean claim that is

 

not paid within this time frame shall bear simple interest at a

 

rate of 12% per annum.

 

     (b) A PIHP shall state in writing to the health professional

 

or facility any defect in the claim within 30 days after receipt of

 

the claim.

 

     (c) A health professional and a health facility have 30 days


 

after receipt of a notice that a claim or a portion of a claim is

 

defective within which to correct the defect. The PIHP shall pay

 

the claim within 30 days after the defect is corrected.

 

     Sec. 428. Each PIHP shall provide, from internal resources,

 

local funds to be used as a bona fide part of the state match

 

required under the Medicaid program in order to increase capitation

 

rates for PIHPs. These funds shall not include either state funds

 

received by a CMHSP for services provided to non-Medicaid

 

recipients or the state matching portion of the Medicaid capitation

 

payments made to a PIHP.

 

     Sec. 435. A county required under the provisions of the mental

 

health code, 1974 PA 258, MCL 330.1001 to 330.2106, to provide

 

matching funds to a CMHSP for mental health services rendered to

 

residents in its jurisdiction shall pay the matching funds in equal

 

installments on not less than a quarterly basis throughout the

 

fiscal year, with the first payment being made by October 1 of the

 

current fiscal year.

 

     Sec. 442. (1) It is the intent of the legislature that the

 

$32,056,100.00 in funding transferred from the community mental

 

health non-Medicaid services line to support the Medicaid adult

 

benefits waiver program shall be used to provide state match for

 

increases in federal funding for primary care and specialty

 

services provided to Medicaid adult benefits waiver enrollees and

 

for economic increases for the Medicaid specialty services and

 

supports program.

 

     (2) The department shall assure that individuals enrolled in

 

the Medicaid adult benefits waiver program shall receive mental


 

health services as approved in the state plan amendment.

 

     (3) Capitation payments to CMHSPs for individuals who become

 

enrolled in the Medicaid adult benefits waiver program shall be

 

made using the same rate methodology as payments for the current

 

Medicaid beneficiaries.

 

     (4) If enrollment in the Medicaid adult benefits waiver

 

program does not achieve expectations and the funding appropriated

 

for the Medicaid adult benefits waiver program for specialty

 

services is not expended, the general fund balance shall be

 

transferred back to the community mental health non-Medicaid

 

services line. The department shall report quarterly to the senate

 

and house appropriations subcommittees on community health a

 

summary of eligible expenditures for the Medicaid adult benefits

 

waiver program by CMHSPs.

 

     Sec. 458. By April 15 of the current fiscal year, the

 

department shall provide each of the following to the house and

 

senate appropriations subcommittees on community health, the house

 

and senate fiscal agencies, and the state budget director:

 

     (a) An updated plan for implementing each of the

 

recommendations of the Michigan mental health commission made in

 

the commission's report dated October 15, 2004.

 

     (b) A report that evaluates the cost-benefit of establishing

 

secure residential facilities of fewer than 17 beds for adults with

 

serious mental illness, modeled after such programming in Oregon or

 

other states. This report shall examine the potential impact that

 

utilization of secure residential facilities would have upon the

 

state's need for adult mental health facilities.


 

     (c) In conjunction with the state court administrator's

 

office, a report that evaluates the cost-benefit of establishing a

 

specialized mental health court program that diverts adults with

 

serious mental illness alleged to have committed an offense deemed

 

nonserious into treatment prior to the filing of any charges.

 

     Sec. 462. (1) In order to implement the fiscal year 2011-2012

 

funding reduction to the community mental health non-Medicaid

 

services line, the department shall further implement the funding

 

formula that was partially implemented during fiscal year 2009-

 

2010.

 

     (2) The department shall report to the senate and house

 

appropriations subcommittees on community health and the senate and

 

house fiscal agencies on the parameters used to make the fiscal

 

year 2011-2012 funding formula adjustments as well as the impact of

 

the formula on each CMHSP.

 

     (3) In redetermining capitation rates for PIHPs in fiscal year

 

2011-2012, the department shall minimize the use of geographic

 

factors.

 

     Sec. 468. To foster a more efficient administration of and to

 

integrate care in publicly funded mental health and substance abuse

 

services, the department shall maintain criteria for the

 

incorporation of a city, county, or regional substance abuse

 

coordinating agency into a local community mental health authority

 

that will encourage those city, county, or regional coordinating

 

agencies to incorporate as local community mental health

 

authorities. If necessary, the department may make accommodations

 

or adjustments in formula distribution to address administrative


 

costs related to the maintenance of the criteria under this section

 

and to the incorporation of the additional coordinating agencies

 

into local community mental health authorities provided that all of

 

the following are satisfied:

 

     (a) The department provides funding for the administrative

 

costs incurred by coordinating agencies incorporating into

 

community mental health authorities. The department shall not

 

provide more than $75,000.00 to any coordinating agency for

 

administrative costs.

 

     (b) The accommodations or adjustments favor coordinating

 

agencies who voluntarily elect to integrate with local community

 

mental health authorities.

 

     (c) The accommodations or adjustments do not negatively affect

 

other coordinating agencies.

 

     Sec. 470. (1) For those substance abuse coordinating agencies

 

that have voluntarily incorporated into community mental health

 

authorities and accepted funding from the department for

 

administrative costs incurred pursuant to section 468, the

 

department shall establish written expectations for those CMHSPs,

 

PIHPs, and substance abuse coordinating agencies and counties with

 

respect to the integration of mental health and substance abuse

 

services. At a minimum, the written expectations shall provide for

 

the integration of those services as follows:

 

     (a) Coordination and consolidation of administrative functions

 

and redirection of efficiencies into service enhancements.

 

     (b) Consolidation of points of 24-hour access for mental

 

health and substance abuse services in every community.


 

     (c) Alignment of coordinating agencies and PIHPs boundaries to

 

maximize opportunities for collaboration and integration of

 

administrative functions and clinical activities.

 

     (2) By May 1 of the current fiscal year, the department shall

 

report to the house and senate appropriations subcommittees on

 

community health, the house and senate fiscal agencies, and the

 

state budget office on the impact and effectiveness of this section

 

and the status of the integration of mental health and substance

 

abuse services.

 

     Sec. 474. The department shall ensure that each contract with

 

a CMHSP or PIHP requires the CMHSP or PIHP to provide each

 

recipient and his or her family with information regarding the

 

different types of guardianship and the alternatives to

 

guardianship. A CMHSP or PIHP shall not, in any manner, attempt to

 

reduce or restrict the ability of a recipient or his or her family

 

from seeking to obtain any form of legal guardianship without just

 

cause.

 

     Sec. 480. The department shall provide to the senate and house

 

appropriations subcommittees on community health and the senate and

 

house fiscal agencies by March 30 of the current fiscal year a

 

report on the number and reimbursement cost of atypical

 

antipsychotic prescriptions by each PIHP for Medicaid

 

beneficiaries.

 

     Sec. 489. The department shall work with the Michigan

 

association of community mental health boards and individual CMHSPs

 

in an effort to mitigate necessary reductions to the community

 

mental health non-Medicaid services line by seeking alternative


 

funding sources.

 

     Sec. 490. (1) The department shall establish a workgroup to

 

develop a plan to maximize uniformity and consistency in the

 

standards required of providers contracting directly with PIHPs,

 

CMHSPs, and substance abuse coordinating agencies. These standards

 

shall apply to community living supports, personal care services,

 

substance abuse services, skill-building services, and other

 

similar supports and services providers who contract with PIHPs,

 

CMHSPs, and substance abuse coordinating agencies or their

 

contractors.

 

     (2) The workgroup shall include representatives of the

 

department, PIHPs, CMHSPs, substance abuse coordinating agencies,

 

and affected providers. The standards shall include, but are not

 

limited to, contract language, training requirements for direct

 

support staff, performance indicators, financial and program

 

audits, and billing procedures.

 

     (3) The department shall provide a status report on the

 

workgroup's efforts to the senate and house appropriations

 

subcommittees on community health, the senate and house fiscal

 

agencies, and the state budget director by June 1 of the current

 

fiscal year.

 

     Sec. 491. The department shall explore changes in program

 

policy in the habilitation supports waiver for persons with

 

developmental disabilities that would permit the movement of a slot

 

that has become available to a county that has demonstrated a

 

greater need for the services.

 

     Sec. 492. If a CMHSP has entered into an agreement with a


 

county or county sheriff to provide mental health services to the

 

inmates of the county jail, the department shall not prohibit the

 

use of state general fund/general purpose dollars by CMHSPs to

 

provide mental health services to inmates of a county jail.

 

     Sec. 494. The department shall work with state approved

 

national accrediting organizations, CMHSPs, and provider agencies

 

to minimize the number of gaps between state requirements and

 

national accrediting reviews during the accreditation process. The

 

department shall report to the legislature by March 1 of the

 

current fiscal year on the outcome of this effort.

 

     Sec. 495. The population data used in determining the

 

distribution of substance abuse block grant funds shall be from the

 

most recent federal census.

 

     Sec. 496. CMHSPs and PIHPs are permitted to offset state

 

funding reductions by limiting the administrative component of

 

their contracts with providers to a maximum of 9%.

 

 

 

STATE PSYCHIATRIC HOSPITALS, CENTERS FOR PERSONS WITH DEVELOPMENTAL

 

DISABILITIES, AND FORENSIC AND PRISON MENTAL HEALTH SERVICES

 

     Sec. 601. (1) In funding of staff in the financial support

 

division, reimbursement, and billing and collection sections,

 

priority shall be given to obtaining third-party payments for

 

services. Collection from individual recipients of services and

 

their families shall be handled in a sensitive and nonharassing

 

manner.

 

     (2) The department shall continue a revenue recapture project

 

to generate additional revenues from third parties related to cases


 

that have been closed or are inactive. Revenues collected through

 

project efforts shall be used for departmental costs and

 

contractual fees associated with these retroactive collections and

 

to improve ongoing departmental reimbursement management functions.

 

     Sec. 602. Unexpended and unencumbered amounts and accompanying

 

expenditure authorizations up to $1,000,000.00 remaining on

 

September 30 of the current fiscal year from the amounts

 

appropriated in part 1 for gifts and bequests for patient living

 

and treatment environments shall be carried forward for 1 fiscal

 

year. The purpose of gifts and bequests for patient living and

 

treatment environments is to use additional private funds to

 

provide specific enhancements for individuals residing at state-

 

operated facilities. Use of the gifts and bequests shall be

 

consistent with the stipulation of the donor. The expected

 

completion date for the use of gifts and bequests donations is

 

within 3 years unless otherwise stipulated by the donor.

 

     Sec. 604. (1) The CMHSPs or PIHPs shall provide annual reports

 

to the department on the following information:

 

     (a) The number of days of care purchased from state hospitals

 

and centers.

 

     (b) The number of days of care purchased from private

 

hospitals in lieu of purchasing days of care from state hospitals

 

and centers.

 

     (c) The number and type of alternative placements to state

 

hospitals and centers other than private hospitals.

 

     (d) Waiting lists for placements in state hospitals and

 

centers.


 

     (2) The department shall annually report the information in

 

subsection (1) to the house and senate appropriations subcommittees

 

on community health, the house and senate fiscal agencies, and the

 

state budget director.

 

     Sec. 605. (1) The department shall not implement any closures

 

or consolidations of state hospitals, centers, or agencies until

 

CMHSPs or PIHPs have programs and services in place for those

 

individuals currently in those facilities and a plan for service

 

provision for those individuals who would have been admitted to

 

those facilities.

 

     (2) All closures or consolidations are dependent upon adequate

 

department-approved CMHSP and PIHP plans that include a discharge

 

and aftercare plan for each individual currently in the facility. A

 

discharge and aftercare plan shall address the individual's housing

 

needs. A homeless shelter or similar temporary shelter arrangements

 

are inadequate to meet the individual's housing needs.

 

     (3) Four months after the certification of closure required in

 

section 19(6) of the state employees' retirement act, 1943 PA 240,

 

MCL 38.19, the department shall provide a closure plan to the house

 

and senate appropriations subcommittees on community health and the

 

state budget director.

 

     (4) Upon the closure of state-run operations and after

 

transitional costs have been paid, the remaining balances of funds

 

appropriated for that operation shall be transferred to CMHSPs or

 

PIHPs responsible for providing services for individuals previously

 

served by the operations.

 

     Sec. 606. The department may collect revenue for patient


 

reimbursement from first- and third-party payers, including

 

Medicaid and local county CMHSP payers, to cover the cost of

 

placement in state hospitals and centers. The department is

 

authorized to adjust financing sources for patient reimbursement

 

based on actual revenues earned. If the revenue collected exceeds

 

current year expenditures, the revenue may be carried forward with

 

approval of the state budget director. The revenue carried forward

 

shall be used as a first source of funds in the subsequent year.

 

     Sec. 608. Effective October 1, 2010, the department, in

 

consultation with the department of technology, management, and

 

budget, shall establish and implement a bid process to identify 1

 

or more private contractors to provide food service and custodial

 

services for the administrative areas at any state hospital

 

identified by the department as capable of generating a minimum of

 

7.5% savings through the outsourcing of such services.

 

 

 

PUBLIC HEALTH ADMINISTRATION

 

     Sec. 653. The department shall develop plans to address

 

potential state public health emergencies.

 

 

 

HEALTH POLICY, REGULATION, AND PROFESSIONS

 

     Sec. 704. The department shall continue to contract with

 

grantees supported through the appropriation in part 1 for the

 

emergency medical services grants and contracts to ensure that a

 

sufficient number of qualified emergency medical services personnel

 

exist to serve rural areas of the state.

 

     Sec. 708. Nursing facilities shall report in the quarterly


 

staff report to the department, the total patient care hours

 

provided each month, by state licensure and certification

 

classification, and the percentage of pool staff, by state

 

licensure and certification classification, used each month during

 

the preceding quarter. The department shall make available to the

 

public, the quarterly staff report compiled for all facilities

 

including the total patient care hours and the percentage of pool

 

staff used, by classification.

 

     Sec. 709. The funds appropriated in part 1 for the Michigan

 

essential health care provider program may also provide loan

 

repayment for dentists that fit the criteria established by part 27

 

of the public health code, 1978 PA 368, MCL 333.2701 to 333.2727.

 

     Sec. 711. The department may make available to interested

 

entities customized listings of nonconfidential information in its

 

possession, such as names and addresses of licensees. The

 

department may establish and collect a reasonable charge to provide

 

this service. The revenue received from this service shall be used

 

to offset expenses to provide the service. Any balance of this

 

revenue collected and unexpended at the end of the fiscal year

 

shall revert to the appropriate restricted fund.

 

     Sec. 714. The department shall report by April 1 of the

 

current fiscal year to the legislature on the timeliness of nursing

 

facility complaint investigations and the number of allegations

 

that are substantiated on an annual basis. The report shall consist

 

of the number of allegations filed by consumers and the number of

 

facility-reported incidents. The department shall make every effort

 

to contact every complainant and the subject of a complaint during


 

an investigation.

 

     Sec. 716. The department shall give priority in investigations

 

of alleged wrongdoing by licensed health care professionals to

 

instances that are alleged to have occurred within 2 years of the

 

initial complaint.

 

     Sec. 718. The department shall gather information on its most

 

frequently cited complaint deficiencies for the prior 3 fiscal

 

years. The department shall determine whether there is an increase

 

in the number of citations from 1 year to the next and assess the

 

cause of the increase, if any, and whether education and training

 

of nursing facility staff or department staff is needed. The

 

department shall implement any training indicated by the study. The

 

department shall provide the results of the study to the senate and

 

house appropriations subcommittees on community health and the

 

senate and house fiscal agencies by May 1 of the current fiscal

 

year.

 

     Sec. 722. A medical professional who was newly accepted into

 

the Michigan essential health provider program in fiscal year 2008-

 

2009 is eligible for 4 years of loan repayments.

 

     Sec. 726. (1) The department shall submit a report by April 1

 

of the current fiscal year to the house and senate appropriations

 

subcommittees on community health, the house and senate fiscal

 

agencies, and the state budget director, on an annual basis, that

 

includes all data on the amount collected from medical marihuana

 

program application and renewal fees along with the cost of

 

administering the medical marihuana program under the Michigan

 

medical marihuana act, 2008 IL 1, MCL 333.26421 to 333.26430.


 

     (2) If the required fees are shown to be insufficient to

 

offset all expenses of implementing and administering the medical

 

marihuana program, the department shall review and revise the

 

application and renewal fees accordingly to ensure that all

 

expenses of implementing and administering the medical marihuana

 

program are offset as is permitted under section 5 of the Michigan

 

medical marihuana act, 2008 IL 1, MCL 333.26425.

 

     Sec. 727. By October 1, 2011, the department shall establish

 

and implement a bid process to identify a private or public

 

contractor to provide management of the medical marihuana program.

 

By January 1 of the current fiscal year, the department shall

 

transfer responsibility for management of the medical marihuana

 

program to the contractor identified by the bid process.

 

     Sec. 729. The department shall identify counties in which

 

there are an insufficient number of health professionals providing

 

obstetrical and gynecological services. In addition, the department

 

shall identify the reasons why there are an insufficient number of

 

health professionals providing obstetrical and gynecological

 

services and identify possible policy or fiscal, or both, measures

 

considered necessary to address the shortage. The department shall

 

submit a report of its findings under this section to the house and

 

senate appropriations subcommittees on community health, house and

 

senate fiscal agencies, and state budget director no later than

 

December 1 of the current fiscal year.

 

 

 

INFECTIOUS DISEASE CONTROL

 

     Sec. 801. In the expenditure of funds appropriated in part 1


 

for AIDS programs, the department and its subcontractors shall

 

ensure that high-risk individuals ages 9 through 18 receive

 

priority for prevention, education, and outreach services.

 

     Sec. 803. The department shall continue the AIDS drug

 

assistance program maintaining the prior year eligibility criteria

 

and drug formulary. This section does not prohibit the department

 

from providing assistance for improved AIDS treatment medications.

 

If the appropriation in part 1 or actual revenue is not sufficient

 

to maintain the prior year eligibility criteria and drug formulary,

 

the department may revise the eligibility criteria and drug

 

formulary in a manner that is consistent with federal program

 

guidelines.

 

     Sec. 805. The department shall continue to fund the Michigan

 

care improvement registry at the same level as in fiscal year 2010-

 

2011.

 

 

 

EPIDEMIOLOGY

 

     Sec. 851. The department shall provide a report annually to

 

the house and senate appropriations subcommittees on community

 

health, the senate and house fiscal agencies, and the state budget

 

director on the expenditures and activities undertaken by the lead

 

abatement program. The report shall include, but is not limited to,

 

a funding allocation schedule, expenditures by category of

 

expenditure and by subcontractor, revenues received, description of

 

program elements, and description of program accomplishments and

 

progress.

 

 


 

LOCAL HEALTH ADMINISTRATION AND GRANTS

 

     Sec. 901. The amount appropriated in part 1 for implementation

 

of the 1993 additions of or amendments to sections 9161, 16221,

 

16226, 17014, 17015, and 17515 of the public health code, 1978 PA

 

368, MCL 333.9161, 333.16221, 333.16226, 333.17014, 333.17015, and

 

333.17515, shall be used to reimburse local health departments for

 

costs incurred related to implementation of section 17015(18) of

 

the public health code, 1978 PA 368, MCL 333.17015.

 

     Sec. 902. (1) If a county that has participated in a district

 

health department or an associated arrangement with other local

 

health departments takes action to cease to participate in such an

 

arrangement after October 1 of the current fiscal year, the

 

department shall have the authority to assess a penalty from the

 

local health department's operational accounts in an amount equal

 

to no more than 6.25% of the local health department's essential

 

local public health services funding. This penalty shall only be

 

assessed to the local county that requests the dissolution of the

 

health department.

 

     (2) The department shall explore changes in program policy

 

that would permit enhanced grants provided through the essential

 

local public health services line to local public health

 

departments that have successfully consolidated after October 1 of

 

the current fiscal year.

 

     Sec. 904. (1) Funds appropriated in part 1 for essential local

 

public health services shall be prospectively allocated to local

 

health departments to support immunizations, infectious disease

 

control, sexually transmitted disease control and prevention,


 

hearing screening, vision services, food protection, public water

 

supply, private groundwater supply, and on-site sewage management.

 

Food protection shall be provided in consultation with the

 

department of agriculture and rural development. Public water

 

supply, private groundwater supply, and on-site sewage management

 

shall be provided in consultation with the department of

 

environmental quality.

 

     (2) Local public health departments shall be held to

 

contractual standards for the services in subsection (1).

 

     (3) Distributions in subsection (1) shall be made only to

 

counties that maintain local spending in the current fiscal year of

 

at least the amount expended in fiscal year 1992-1993 for the

 

services described in subsection (1).

 

     (4) By April 1 of the current fiscal year, the department

 

shall make available a report to the senate and house

 

appropriations subcommittees on community health, the senate and

 

house fiscal agencies, and the state budget director on the planned

 

allocation of the funds appropriated for essential local public

 

health services.

 

 

 

CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH PROMOTION

 

     Sec. 1006. In spending the funds appropriated in part 1 for

 

the smoking prevention program, priority shall be given to

 

prevention and smoking cessation programs for pregnant women, women

 

with young children, and adolescents.

 

     Sec. 1031. (1) From the funds appropriated in part 1 for the

 

injury control intervention project, $170,000.00 shall be used to


 

continue 2 incentive-based pilot programs for level I and level II

 

trauma hospitals to ensure greater state utilization of an

 

interactive, evidence-based treatment guideline model for traumatic

 

brain injury.

 

     (2) One pilot program shall be placed in a county with a

 

population of less than 225,000. The other pilot program shall be

 

placed in a county with a population over 1,000,000.

 

 

 

FAMILY, MATERNAL, AND CHILDREN'S HEALTH SERVICES

 

     Sec. 1103. (1) It is the intent of the legislature that,

 

beginning March 31, 2013, the department shall issue a report to

 

the legislature detailing user rates and public expenditures for

 

family planning and sexual health. The report shall include at

 

least the following expenditures of state and federal funds for the

 

direct medical and clinical costs, as determined by the department,

 

due to out-of-wedlock sexual activity:

 

     (a) The percent of clients or users who are unmarried and

 

access family planning, pregnancy prevention, or sexually

 

transmitted disease prevention services.

 

     (b) The approximate expenditure of state and federal funds,

 

based on marital status, to provide family planning, pregnancy

 

prevention, and sexually transmitted disease prevention services.

 

     (c) The total annual public expenditure by the state, based on

 

marital status, on medical care to persons who have contracted

 

sexually transmitted diseases.

 

     (d) The total annual public expenditure by the state for out-

 

of-wedlock pregnancy, including prenatal care, birth expenses,


 

abortion expenses, and any expenditures the department determines

 

may reasonably be related to pregnancy or pregnancy outcome for a

 

period of 30 days after the date of delivery or termination of the

 

pregnancy.

 

     (2) Beginning on January 1 of the current fiscal year, the

 

department shall begin gathering the data necessary to create the

 

report described in subsection (1).

 

     (3) The department may utilize or amend any other existing

 

report to comply with the reporting requirement described in

 

subsection (1) unless prohibited by law. It is the intent of the

 

legislature that a service provider or agency that fails to comply

 

with the reporting requirements in this section shall not be

 

considered for funding for a period of at least 2 years.

 

     Sec. 1104. (1) Before April 1 of the current fiscal year, the

 

department shall submit a report to the house and senate fiscal

 

agencies and the state budget director on planned allocations from

 

the amounts appropriated in part 1 for local MCH services, prenatal

 

care outreach and service delivery support, family planning local

 

agreements, and pregnancy prevention programs. Using applicable

 

federal definitions, the report shall include information on all of

 

the following:

 

     (a) Funding allocations.

 

     (b) Actual number of women, children, and adolescents served

 

and amounts expended for each group for the immediately preceding

 

fiscal year.

 

     (c) A breakdown of the expenditure of these funds between

 

urban and rural communities.


 

     (2) The department shall ensure that the distribution of funds

 

through the programs described in subsection (1) takes into account

 

the needs of rural communities.

 

     (3) For the purposes of this section, "rural" means a county,

 

city, village, or township with a population of 30,000 or less,

 

including those entities if located within a metropolitan

 

statistical area.

 

     Sec. 1106. Each family planning program receiving federal

 

title X family planning funds under 42 USC 300 to 300a-8 shall be

 

in compliance with all performance and quality assurance indicators

 

that the office of family planning within the United States

 

department of health and human services specifies in the family

 

planning annual report. An agency not in compliance with the

 

indicators shall not receive supplemental or reallocated funds.

 

     Sec. 1108. The funds appropriated in part 1 for pregnancy

 

prevention programs shall not be used to provide abortion

 

counseling, referrals, or services.

 

     Sec. 1109. (1) From the amounts appropriated in part 1 for

 

dental programs, funds shall be allocated to the Michigan dental

 

association for the administration of a volunteer dental program

 

that provides dental services to the uninsured.

 

     (2) Not later than December 1 of the current fiscal year, the

 

department shall report to the senate and house appropriations

 

subcommittees on community health and the senate and house standing

 

committees on health policy the number of individual patients

 

treated, number of procedures performed, and approximate total

 

market value of those procedures from the immediately preceding


 

fiscal year.

 

     Sec. 1129. The department shall provide a report annually to

 

the house and senate appropriations subcommittees on community

 

health, the house and senate fiscal agencies, and the state budget

 

director on the number of children with elevated blood lead levels

 

from information available to the department. The report shall

 

provide the information by county, shall include the level of blood

 

lead reported, and shall indicate the sources of the information.

 

     Sec. 1133. The department shall release infant mortality rate

 

data to all local public health departments 72 hours or more before

 

releasing infant mortality rate data to the public.

 

     Sec. 1135. (1) If funds become available, provision of the

 

school health education curriculum, such as the Michigan model for

 

health or another comprehensive school health education curriculum,

 

shall be in accordance with the health education goals established

 

by the Michigan model steering committee. The steering committee

 

shall be composed of a representative from each of the following

 

offices and departments:

 

     (a) The department of education.

 

     (b) The department of community health.

 

     (c) The health administration in the department of community

 

health.

 

     (d) The mental health and substance abuse administration in

 

the department of community health.

 

     (e) The department of human services.

 

     (f) The department of state police.

 

     (2) Upon written or oral request, a pupil not less than 18


 

years of age or a parent or legal guardian of a pupil less than 18

 

years of age, within a reasonable period of time after the request

 

is made, shall be informed of the content of a course in the health

 

education curriculum and may examine textbooks and other classroom

 

materials that are provided to the pupil or materials that are

 

presented to the pupil in the classroom. This subsection does not

 

require a school board to permit pupil or parental examination of

 

test questions and answers, scoring keys, or other examination

 

instruments or data used to administer an academic examination.

 

 

 

WOMEN, INFANTS, AND CHILDREN FOOD AND NUTRITION PROGRAM

 

     Sec. 1153. The department shall ensure that individuals

 

residing in rural communities have sufficient access to the

 

services offered through the WIC program. The department shall

 

report to the legislature on its efforts to increase access to the

 

WIC program in rural areas.

 

 

 

CHILDREN'S SPECIAL HEALTH CARE SERVICES

 

     Sec. 1201. Funds appropriated in part 1 for medical care and

 

treatment of children with special health care needs shall be paid

 

according to reimbursement policies determined and published by the

 

Michigan medical services administration.

 

     Sec. 1202. The department may do 1 or more of the following:

 

     (a) Provide special formula for eligible clients with

 

specified metabolic and allergic disorders.

 

     (b) Provide medical care and treatment to eligible patients

 

with cystic fibrosis who are 21 years of age or older.


 

     (c) Provide medical care and treatment to eligible patients

 

with hereditary coagulation defects, commonly known as hemophilia,

 

who are 21 years of age or older.

 

     Sec. 1204. By October 1, 2011, the department shall report to

 

the senate and house appropriations committees on community health

 

and the senate and house fiscal agencies on its plan for enrolling

 

Medicaid eligible children's special health care services

 

recipients in the Medicaid health plans. The report shall include

 

information on which Medicaid health plans are participating, the

 

methods used to assure continuity of care and continuity of ongoing

 

relationships with providers, and projected savings from the

 

implementation of the proposal.

 

 

 

CRIME VICTIM SERVICES COMMISSION

 

     Sec. 1302. From the funds appropriated in part 1 for justice

 

assistance grants, up to $200,000.00 shall be allocated for

 

expansion of forensic nurse examiner programs to facilitate

 

training for improved evidence collection for the prosecution of

 

sexual assault. The funds shall be used for program coordination

 

and training.

 

     Sec. 1304. The department shall work with the department of

 

state police, the Michigan health and hospital association, the

 

Michigan state medical society, and the Michigan nurses association

 

to ensure that the recommendations included in the "Standard

 

Recommended Procedures for the Emergency Treatment of Sexual

 

Assault Victims" are followed in the collection of evidence.

 

 


 

OFFICE OF SERVICES TO THE AGING

 

     Sec. 1401. The appropriation in part 1 to the office of

 

services to the aging for community services and nutrition services

 

shall be restricted to eligible individuals at least 60 years of

 

age who fail to qualify for home care services under title XVIII,

 

XIX, or XX.

 

     Sec. 1403. (1) The office of services to the aging shall

 

require each region to report to the office of services to the

 

aging and to the legislature home-delivered meals waiting lists

 

based upon standard criteria. Determining criteria shall include

 

all of the following:

 

     (a) The recipient's degree of frailty.

 

     (b) The recipient's inability to prepare his or her own meals

 

safely.

 

     (c) Whether the recipient has another care provider available.

 

     (d) Any other qualifications normally necessary for the

 

recipient to receive home-delivered meals.

 

     (2) Data required in subsection (1) shall be recorded only for

 

individuals who have applied for participation in the home-

 

delivered meals program and who are initially determined as likely

 

to be eligible for home-delivered meals.

 

     Sec. 1413. Local counties may request to change membership in

 

the area agencies on aging if the change is to an area agency on

 

aging that is contiguous to that county pursuant to office of

 

services to the aging policies and procedures for area agency on

 

aging designation. The office of services to the aging shall adjust

 

allocations to area agencies on aging to account for any changes in


 

county membership. The office of services to the aging shall ensure

 

annually that county boards of commissioners are aware that county

 

membership in area agencies on aging can be changed subject to

 

office of services to the aging policies and procedures for area

 

agency on aging designation.

 

     Sec. 1417. The department shall provide to the senate and

 

house appropriations subcommittees on community health, senate and

 

house fiscal agencies, and state budget director a report by March

 

30 of the current fiscal year that contains all of the following:

 

     (a) The total allocation of state resources made to each area

 

agency on aging by individual program and administration.

 

     (b) Detail expenditure by each area agency on aging by

 

individual program and administration including both state-funded

 

resources and locally-funded resources.

 

     Sec. 1418. From the funds appropriated in part 1 for nutrition

 

services, the department shall maximize funding for home-delivered

 

meals to the extent allowable under federal law and regulation.

 

     Sec. 1420. The department shall create a pilot project to

 

establish an aging care management services program with services

 

provided solely by nurses. This pilot project shall be established

 

in a county with a population greater than 150,000 but less than

 

250,000.

 

 

 

MEDICAL SERVICES

 

     Sec. 1601. The cost of remedial services incurred by residents

 

of licensed adult foster care homes and licensed homes for the aged

 

shall be used in determining financial eligibility for the


 

medically needy. Remedial services include basic self-care and

 

rehabilitation training for a resident.

 

     Sec. 1603. (1) The department may establish a program for

 

individuals to purchase medical coverage at a rate determined by

 

the department.

 

     (2) The department may receive and expend premiums for the

 

buy-in of medical coverage in addition to the amounts appropriated

 

in part 1.

 

     (3) The premiums described in this section shall be classified

 

as private funds.

 

     (4) The department shall modify program policies to permit

 

individuals eligible for the transitional medical assistance plus

 

program, as structured in fiscal year 2009-2010, to access medical

 

assistance coverage through a 100% cost share.

 

     Sec. 1604. (1) A Medicaid recipient shall remain eligible and

 

a qualifying applicant shall be determined eligible for medical

 

assistance during a period of incarceration or detention. Medicaid

 

coverage is limited during such a period to off-site inpatient

 

hospitalization only.

 

     (2) A Medicaid recipient is considered incarcerated or

 

detained until released on bail, released as not guilty, released

 

on parole, released on probation, released on pardon, released upon

 

completing a sentence, or released under home detention or tether.

 

     Sec. 1605. The protected income level for Medicaid coverage

 

determined pursuant to section 106(1)(b)(iii) of the social welfare

 

act, 1939 PA 280, MCL 400.106, shall be 100% of the related public

 

assistance standard.


 

     Sec. 1606. For the purpose of guardian and conservator

 

charges, the department of community health may deduct up to $60.00

 

per month as an allowable expense against a recipient's income when

 

determining medical services eligibility and patient pay amounts.

 

     Sec. 1607. (1) An applicant for Medicaid, whose qualifying

 

condition is pregnancy, shall immediately be presumed to be

 

eligible for Medicaid coverage unless the preponderance of evidence

 

in her application indicates otherwise. The applicant who is

 

qualified as described in this subsection shall be allowed to

 

select or remain with the Medicaid participating obstetrician of

 

her choice.

 

     (2) An applicant qualified as described in subsection (1)

 

shall be given a letter of authorization to receive Medicaid

 

covered services related to her pregnancy. All qualifying

 

applicants shall be entitled to receive all medically necessary

 

obstetrical and prenatal care without preauthorization from a

 

health plan. All claims submitted for payment for obstetrical and

 

prenatal care shall be paid at the Medicaid fee-for-service rate in

 

the event a contract does not exist between the Medicaid

 

participating obstetrical or prenatal care provider and the managed

 

care plan. The applicant shall receive a listing of Medicaid

 

physicians and managed care plans in the immediate vicinity of the

 

applicant's residence.

 

     (3) In the event that an applicant, presumed to be eligible

 

pursuant to subsection (1), is subsequently found to be ineligible,

 

a Medicaid physician or managed care plan that has been providing

 

pregnancy services to an applicant under this section is entitled


 

to reimbursement for those services until such time as they are

 

notified by the department that the applicant was found to be

 

ineligible for Medicaid.

 

     (4) If the preponderance of evidence in an application

 

indicates that the applicant is not eligible for Medicaid, the

 

department shall refer that applicant to the nearest public health

 

clinic or similar entity as a potential source for receiving

 

pregnancy-related services.

 

     (5) The department shall develop an enrollment process for

 

pregnant women covered under this section that facilitates the

 

selection of a managed care plan at the time of application.

 

     (6) The department shall mandate enrollment of women, whose

 

qualifying condition is pregnancy, into Medicaid managed care

 

plans.

 

     (7) The department shall encourage physicians to provide

 

women, whose qualifying condition for Medicaid is pregnancy, with a

 

referral to a Medicaid participating dentist at the first

 

pregnancy-related appointment.

 

     Sec. 1610. The department shall provide an administrative

 

procedure for the review of cost report grievances by medical

 

services providers with regard to reimbursement under the medical

 

services program. Settlements of properly submitted cost reports

 

shall be paid not later than 9 months from receipt of the final

 

report.

 

     Sec. 1611. (1) For care provided to medical services

 

recipients with other third-party sources of payment, medical

 

services reimbursement shall not exceed, in combination with such


 

other resources, including Medicare, those amounts established for

 

medical services-only patients. The medical services payment rate

 

shall be accepted as payment in full. Other than an approved

 

medical services co-payment, no portion of a provider's charge

 

shall be billed to the recipient or any person acting on behalf of

 

the recipient. Nothing in this section shall be considered to

 

affect the level of payment from a third-party source other than

 

the medical services program. The department shall require a

 

nonenrolled provider to accept medical services payments as payment

 

in full.

 

     (2) Notwithstanding subsection (1), medical services

 

reimbursement for hospital services provided to dual

 

Medicare/medical services recipients with Medicare part B coverage

 

only shall equal, when combined with payments for Medicare and

 

other third-party resources, if any, those amounts established for

 

medical services-only patients, including capital payments.

 

     Sec. 1620. (1) For fee-for-service recipients who do not

 

reside in nursing homes, the pharmaceutical dispensing fee shall be

 

$2.75 or the pharmacy's usual or customary cash charge, whichever

 

is less. For nursing home residents, the pharmaceutical dispensing

 

fee shall be $3.00 or the pharmacy's usual or customary cash

 

charge, whichever is less.

 

     (2) The department shall require a prescription co-payment for

 

Medicaid recipients of $1.00 for a generic drug and $3.00 for a

 

brand-name drug, except as prohibited by federal or state law or

 

regulation.

 

     (3) It is the intent of the legislature that if the department


 

realizes savings as a result of the implementation of average

 

manufacturer's price for reimbursement of multiple source generic

 

medication dispensing as imposed pursuant to the federal deficit

 

reduction act of 2005, Public Law 109-171, the savings shall be

 

returned to pharmacies in the form of an increased dispensing fee

 

for medications not to exceed $2.00. The savings shall be

 

calculated as the difference in state expenditure between the

 

current methodology of payment, which is maximum allowable cost,

 

and the proposed new reimbursement method of average manufacturer's

 

price.

 

     Sec. 1623. (1) The department shall continue the Medicaid

 

policy that allows for the dispensing of a 100-day supply for

 

maintenance drugs.

 

     (2) The department shall notify all HMOs, physicians,

 

pharmacies, and other medical providers that are enrolled in the

 

Medicaid program that Medicaid policy allows for the dispensing of

 

a 100-day supply for maintenance drugs.

 

     (3) The notice in subsection (2) shall also clarify that a

 

pharmacy shall fill a prescription written for maintenance drugs in

 

the quantity specified by the physician, but not more than the

 

maximum allowed under Medicaid, unless subsequent consultation with

 

the prescribing physician indicates otherwise.

 

     Sec. 1627. (1) The department shall use procedures and rebate

 

amounts specified under section 1927 of title XIX, 42 USC 1396r-8,

 

to secure quarterly rebates from pharmaceutical manufacturers for

 

outpatient drugs dispensed to participants in the MIChild program,

 

maternal outpatient medical services program, and children's


 

special health care services.

 

     (2) For products distributed by pharmaceutical manufacturers

 

not providing quarterly rebates as listed in subsection (1), the

 

department may require preauthorization.

 

     Sec. 1629. The department shall utilize maximum allowable cost

 

pricing for generic drugs that is based on wholesaler pricing to

 

providers that is available from at least 2 wholesalers who deliver

 

in the state of Michigan.

 

     Sec. 1630. Medicaid coverage for adult dental and podiatric

 

services shall continue at not less than the level in effect on

 

October 1, 2002, except that reasonable utilization limitations may

 

be adopted in order to prevent excess utilization.

 

     Sec. 1631. (1) The department shall require co-payments on

 

dental, podiatric, and vision services provided to Medicaid

 

recipients, except as prohibited by federal or state law or

 

regulation.

 

     (2) Except as otherwise prohibited by federal or state law or

 

regulations, the department shall require Medicaid recipients to

 

pay the following co-payments:

 

     (a) Two dollars for a physician office visit.

 

     (b) Three dollars for a hospital emergency room visit.

 

     (c) Fifty dollars for the first day of an inpatient hospital

 

stay.

 

     (d) One dollar for an outpatient hospital visit.

 

     Sec. 1635. From the funds appropriated in part 1 for physician

 

services and health plan services, the department shall continue

 

the increase in Medicaid reimbursement rates for obstetrical


 

services implemented in fiscal year 2005-2006.

 

     Sec. 1636. From the funds appropriated in part 1 for physician

 

services and health plan services, the department shall continue

 

the increase in Medicaid reimbursement rates for physician well

 

child procedure codes and primary care procedure codes implemented

 

in fiscal year 2006-2007 and fiscal year 2008-2009. The increased

 

reimbursement rates in this section shall not exceed the comparable

 

Medicare payment rate for the same services.

 

     Sec. 1641. An institutional provider that is required to

 

submit a cost report under the medical services program shall

 

submit cost reports completed in full within 5 months after the end

 

of its fiscal year.

 

     Sec. 1642. The department shall allow ambulatory surgery

 

centers in this state to fully participate in the Medicaid program.

 

     Sec. 1648. The department shall maintain and make available an

 

online resource to enable medical providers to obtain enrollment

 

and benefit information of Medicaid recipients. There shall be no

 

charge to providers for the use of the online resource.

 

     Sec. 1649. From the funds appropriated in part 1 for medical

 

services, the department shall continue breast and cervical cancer

 

treatment coverage for women up to 250% of the federal poverty

 

level, who are under age 65, and who are not otherwise covered by

 

insurance. This coverage shall be provided to women who have been

 

screened through the centers for disease control and prevention

 

breast and cervical cancer early detection program, and are found

 

to have breast or cervical cancer, pursuant to the breast and

 

cervical cancer prevention and treatment act of 2000, Public Law


 

106-354.

 

     Sec. 1650. (1) The department may require medical services

 

recipients residing in counties offering managed care options to

 

choose the particular managed care plan in which they wish to be

 

enrolled. Individuals not expressing a preference may be assigned

 

to a managed care provider.

 

     (2) Individuals to be assigned a managed care provider shall

 

be informed in writing of the criteria for exceptions to capitated

 

managed care enrollment, their right to change HMOs for any reason

 

within the initial 90 days of enrollment, the toll-free telephone

 

number for problems and complaints, and information regarding

 

grievance and appeals rights.

 

     (3) The criteria for medical exceptions to HMO enrollment

 

shall be based on submitted documentation that indicates a

 

recipient has a serious medical condition, and is undergoing active

 

treatment for that condition with a physician who does not

 

participate in 1 of the HMOs. If the individual meets the criteria

 

established by this subsection, the department shall grant an

 

exception to mandatory enrollment at least through the current

 

prescribed course of treatment, subject to periodic review of

 

continued eligibility.

 

     Sec. 1651. (1) Medical services patients who are enrolled in

 

HMOs have the choice to elect hospice services or other services

 

for the terminally ill that are offered by the HMOs. If the patient

 

elects hospice services, those services shall be provided in

 

accordance with part 214 of the public health code, 1978 PA 368,

 

MCL 333.21401 to 333.21420.


 

     (2) The department shall not amend the medical services

 

hospice manual in a manner that would allow hospice services to be

 

provided without making available all comprehensive hospice

 

services described in 42 CFR part 418.

 

     Sec. 1652. Any new contracts with Medicaid health plans

 

negotiated or signed, or both, during the current fiscal year shall

 

include the following provisions regarding expansion of services by

 

the Medicaid HMOs to counties not previously served by that

 

Medicaid HMO:

 

     (a) The Medicaid HMO shall not sell, transfer, or otherwise

 

convey to any person all or any portion of the HMO's assets or

 

business, whether in the form of equity, debt or otherwise, for a

 

period of 3 years from the date the Medicaid HMO commences

 

operations in a new service area.

 

     (b) That any Medicaid HMOs that expand into a county with a

 

population of at least 1,500,000 shall also expand its coverage to

 

a county with a population of less than 100,000 which has 1 or

 

fewer HMOs participating in the Medicaid program.

 

     Sec. 1653. Implementation and contracting for managed care by

 

the department through HMOs shall be subject to the following

 

conditions:

 

     (a) Continuity of care is assured by allowing enrollees to

 

continue receiving required medically necessary services from their

 

current providers for a period not to exceed 1 year if enrollees

 

meet the managed care medical exception criteria.

 

     (b) The department shall require contracted HMOs to submit

 

data determined necessary for evaluation on a timely basis.


 

     (c) Mandatory enrollment of Medicaid beneficiaries living in

 

counties defined as rural by the federal government, which is any

 

nonurban standard metropolitan statistical area, is allowed if

 

there is only 1 HMO serving the Medicaid population, as long as

 

each Medicaid beneficiary is assured of having a choice of at least

 

2 physicians by the HMO.

 

     (d) Enrollment of recipients of children's special health care

 

services in HMOs shall continue to be voluntary for those enrolled

 

in the children's special health care services program. Children's

 

special health care services recipients shall be informed of the

 

opportunity to enroll in HMOs.

 

     (e) The department shall develop a case adjustment to its rate

 

methodology that considers the costs of individuals with HIV/AIDS,

 

end stage renal disease, organ transplants, and other high-cost

 

diseases or conditions and shall implement the case adjustment when

 

it is proven to be actuarially and fiscally sound. Implementation

 

of the case adjustment shall be budget neutral.

 

     (f) Prior to contracting with an HMO for managed care services

 

that did not have a contract with the department before October 1,

 

2002, the department shall receive assurances from the office of

 

financial and insurance regulation that the HMO meets the net worth

 

and financial solvency requirements contained in chapter 35 of the

 

insurance code of 1956, 1956 PA 218, MCL 500.3501 to 500.3580.

 

     Sec. 1654. Medicaid HMOs shall provide for reimbursement of

 

HMO covered services delivered other than through the HMO's

 

providers if medically necessary and approved by the HMO,

 

immediately required, and that could not be reasonably obtained


 

through the HMO's providers on a timely basis. Such services shall

 

be considered approved if the HMO does not respond to a request for

 

authorization within 24 hours of the request. Reimbursement shall

 

not exceed the Medicaid fee-for-service payment for those services.

 

     Sec. 1655. (1) The department may require a 12-month lock-in

 

to the HMO selected by the recipient during the initial and

 

subsequent open enrollment periods, but allow for good cause

 

exceptions during the lock-in period.

 

     (2) Medicaid recipients shall be allowed to change HMOs for

 

any reason within the initial 90 days of enrollment.

 

     Sec. 1656. (1) The department shall provide an expedited

 

complaint review procedure for Medicaid recipients enrolled in HMOs

 

for situations in which failure to receive any health care service

 

would result in significant harm to the enrollee.

 

     (2) The department shall provide for a toll-free telephone

 

number for Medicaid recipients enrolled in HMOs to assist with

 

resolving problems and complaints. If warranted, the department

 

shall immediately disenroll individuals from HMOs and approve fee-

 

for-service coverage.

 

     Sec. 1657. (1) Reimbursement for medical services to screen

 

and stabilize a Medicaid recipient, including stabilization of a

 

psychiatric crisis, in a hospital emergency room shall not be made

 

contingent on obtaining prior authorization from the recipient's

 

HMO. If the recipient is discharged from the emergency room, the

 

hospital shall notify the recipient's HMO within 24 hours of the

 

diagnosis and treatment received.

 

     (2) If the treating hospital determines that the recipient


 

will require further medical service or hospitalization beyond the

 

point of stabilization, that hospital shall receive authorization

 

from the recipient's HMO prior to admitting the recipient.

 

     (3) Subsections (1) and (2) do not require an alteration to an

 

existing agreement between an HMO and its contracting hospitals and

 

do not require an HMO to reimburse for services that are not

 

considered to be medically necessary.

 

     Sec. 1658. (1) HMOs shall have contracts with hospitals within

 

a reasonable distance from their enrollees. If a hospital does not

 

contract with the HMO in its service area, that hospital shall

 

enter into a hospital access agreement as specified in the Medical

 

Services Administration Bulletin Hospital 01-19.

 

     (2) A hospital access agreement specified in subsection (1)

 

shall be considered an affiliated provider contract pursuant to the

 

requirements contained in chapter 35 of the insurance code of 1956,

 

1956 PA 218, MCL 500.3501 to 500.3580.

 

     Sec. 1659. The following sections of this act are the only

 

ones that shall apply to the following Medicaid managed care

 

programs, including the comprehensive plan, MIChoice long-term care

 

plan, and the mental health, substance abuse, and developmentally

 

disabled services program: 401, 402, 404, 418, 424, 428, 474, 1204,

 

1607, 1650, 1651, 1652, 1653, 1654, 1655, 1656, 1657, 1658, 1660,

 

1661, 1662, 1684, 1689, 1690, 1699, 1711, 1764, 1787, 1815, 1819,

 

1822, 1826, 1835, 1850, and 1853.

 

     Sec. 1660. (1) The department shall assure that all Medicaid

 

children have timely access to EPSDT services as required by

 

federal law. Medicaid HMOs shall provide EPSDT services to their


 

child members in accordance with Medicaid EPSDT policy.

 

     (2) The primary responsibility of assuring a child's hearing

 

and vision screening is with the child's primary care provider. The

 

primary care provider shall provide age-appropriate screening or

 

arrange for these tests through referrals to local health

 

departments. Local health departments shall provide preschool

 

hearing and vision screening services and accept referrals for

 

these tests from physicians or from Head Start programs in order to

 

assure all preschool children have appropriate access to hearing

 

and vision screening. Local health departments shall be reimbursed

 

for the cost of providing these tests for Medicaid eligible

 

children by the Medicaid program.

 

     (3) The department shall prohibit HMOs from requiring prior

 

authorization of their contracted providers for any EPSDT screening

 

and diagnosis services.

 

     (4) The department shall require HMOs to be responsible for

 

well child visits as described in Medicaid policy. These

 

responsibilities shall be specified in the information distributed

 

by the HMOs to their members.

 

     (5) The department shall provide, on an annual basis, budget-

 

neutral incentives to Medicaid HMOs and local health departments to

 

improve performance on measures related to the care of children.

 

     Sec. 1661. (1) The department shall assure that all Medicaid

 

eligible children and pregnant women have timely access to MIHP

 

services. Medicaid HMOs shall assure that MIHP screening is

 

available to their pregnant members and that those women found to

 

meet the MIHP high-risk criteria are offered maternal support


 

services. Local health departments shall assure that MIHP screening

 

is available for Medicaid pregnant women and that those women found

 

to meet the MIHP high-risk criteria are offered MIHP services or

 

are referred to a certified MIHP provider.

 

     (2) The department shall require HMOs to be responsible for

 

the coordination of MIHP services as described in Medicaid policy.

 

These responsibilities shall be specified in the information

 

distributed by the HMOs to their members.

 

     (3) The department shall assure the coordination of MIHP

 

services with the WIC program, state-supported substance abuse,

 

smoking prevention, and violence prevention programs, the

 

department of human services, and any other state or local program

 

with a focus on preventing adverse birth outcomes and child abuse

 

and neglect.

 

     (4) The department shall provide, on an annual basis, budget-

 

neutral incentives to Medicaid HMOs and local health departments to

 

improve performance on measures related to the care of pregnant

 

women.

 

     Sec. 1662. (1) The department shall assure that an external

 

quality review of each contracting HMO is performed that results in

 

an analysis and evaluation of aggregated information on quality,

 

timeliness, and access to health care services that the HMO or its

 

contractors furnish to Medicaid beneficiaries.

 

     (2) The department shall require Medicaid HMOs to provide

 

EPSDT utilization data through the encounter data system, and HEDIS

 

well child health measures in accordance with the National

 

Committee for Quality Assurance prescribed methodology.


 

     (3) The department shall provide a copy of the analysis of the

 

Medicaid HMO annual audited HEDIS reports and the annual external

 

quality review report to the senate and house of representatives

 

appropriations subcommittees on community health, the senate and

 

house fiscal agencies, and the state budget director, within 30

 

days of the department's receipt of the final reports from the

 

contractors.

 

     (4) The department shall work with the Michigan association of

 

health plans and the Michigan association for local public health

 

to improve service delivery and coordination in the MIHP and EPSDT

 

programs.

 

     (5) The department shall assure that training and technical

 

assistance are available for EPSDT and MIHP for Medicaid health

 

plans, local health departments, and MIHP contractors.

 

     Sec. 1670. (1) The appropriation in part 1 for the MIChild

 

program is to be used to provide comprehensive health care to all

 

children under age 19 who reside in families with income at or

 

below 200% of the federal poverty level, who are uninsured and have

 

not had coverage by other comprehensive health insurance within 6

 

months of making application for MIChild benefits, and who are

 

residents of this state. The department shall develop detailed

 

eligibility criteria through the medical services administration

 

public concurrence process, consistent with the provisions of this

 

act. Health coverage for children in families between 150% and 200%

 

of the federal poverty level shall be provided through a state-

 

based private health care program.

 

     (2) The department may provide up to 1 year of continuous


 

eligibility to children eligible for the MIChild program unless the

 

family fails to pay the monthly premium, a child reaches age 19, or

 

the status of the children's family changes and its members no

 

longer meet the eligibility criteria as specified in the federally

 

approved MIChild state plan.

 

     (3) Children whose category of eligibility changes between the

 

Medicaid and MIChild programs shall be assured of keeping their

 

current health care providers through the current prescribed course

 

of treatment for up to 1 year, subject to periodic reviews by the

 

department if the beneficiary has a serious medical condition and

 

is undergoing active treatment for that condition.

 

     (4) To be eligible for the MIChild program, a child must be

 

residing in a family with an adjusted gross income of less than or

 

equal to 200% of the federal poverty level. The department's

 

verification policy shall be used to determine eligibility.

 

     (5) The department shall enter into a contract to obtain

 

MIChild services from any HMO, dental care corporation, or any

 

other entity that offers to provide the managed health care

 

benefits for MIChild services at the MIChild capitated rate. As

 

used in this subsection:

 

     (a) "Dental care corporation", "health care corporation",

 

"insurer", and "prudent purchaser agreement" mean those terms as

 

defined in section 2 of the prudent purchaser act, 1984 PA 233, MCL

 

550.52.

 

     (b) "Entity" means a health care corporation or insurer

 

operating in accordance with a prudent purchaser agreement.

 

     (6) The department may enter into contracts to obtain certain


 

MIChild services from community mental health service programs.

 

     (7) The department may make payments on behalf of children

 

enrolled in the MIChild program from the line-item appropriation

 

associated with the program as described in the MIChild state plan

 

approved by the United States department of health and human

 

services, or from other medical services.

 

     (8) The department shall assure that an external quality

 

review of each MIChild contractor, as described in subsection (5),

 

is performed, which analyzes and evaluates the aggregated

 

information on quality, timeliness, and access to health care

 

services that the contractor furnished to MIChild beneficiaries.

 

     (9) The department shall develop an automatic enrollment

 

algorithm that is based on quality and performance factors.

 

     Sec. 1673. The department may establish premiums for MIChild

 

eligible individuals in families with income above 150% of the

 

federal poverty level. The monthly premiums shall not be less than

 

$10.00 or exceed $15.00 for a family.

 

     Sec. 1682. (1) The department shall implement enforcement

 

actions as specified in the nursing facility enforcement provisions

 

of section 1919 of title XIX, 42 USC 1396r.

 

     (2) In addition to the appropriations in part 1, the

 

department is authorized to receive and spend penalty money

 

received as the result of noncompliance with medical services

 

certification regulations. Penalty money, characterized as private

 

funds, received by the department shall increase authorizations and

 

allotments in the long-term care accounts.

 

     (3) The department is authorized to provide civil monetary


 

penalty funds to the disability network/Michigan to be distributed

 

to the 15 centers for independent living for the purpose of

 

assisting individuals with disabilities who reside in nursing homes

 

to return to their own homes.

 

     (4) The department is authorized to use civil monetary penalty

 

funds to conduct a survey evaluating consumer satisfaction and the

 

quality of care at nursing homes. Factors can include, but are not

 

limited to, the level of satisfaction of nursing home residents,

 

their families, and employees. The department may use an

 

independent contractor to conduct the survey.

 

     (5) Any unexpended penalty money, at the end of the year,

 

shall carry forward to the following year.

 

     Sec. 1684. The department shall submit a report by September

 

30 of the current fiscal year to the house and senate

 

appropriations subcommittees on community health, the house and

 

senate fiscal agencies, and the state budget director that will

 

identify by waiver agent, Medicaid home- and community-based

 

services waiver costs by administration, case management, and

 

direct services.

 

     Sec. 1685. All nursing home rates, class I and class III,

 

shall have their respective fiscal year rate set 30 days prior to

 

the beginning of their rate year. Rates may take into account the

 

most recent cost report prepared and certified by the preparer,

 

provider corporate owner or representative as being true and

 

accurate, and filed timely, within 5 months of the fiscal year end

 

in accordance with Medicaid policy. If the audited version of the

 

last report is available, it shall be used. Any rate factors based


 

on the filed cost report may be retroactively adjusted upon

 

completion of the audit of that cost report.

 

     Sec. 1689. (1) Priority in enrolling additional individuals in

 

the Medicaid home- and community-based services waiver program

 

shall be given to those who are currently residing in nursing homes

 

or who are eligible to be admitted to a nursing home if they are

 

not provided home- and community-based services. The department

 

shall use screening and assessment procedures to assure that no

 

additional Medicaid eligible individuals are admitted to nursing

 

homes who would be more appropriately served by the Medicaid home-

 

and community-based services waiver program.

 

     (2) Within 60 days of the end of each fiscal year, the

 

department shall provide a report to the senate and house

 

appropriations subcommittees on community health and the senate and

 

house fiscal agencies that details existing and future allocations

 

for the home- and community-based services waiver program by

 

regions as well as the associated expenditures. The report shall

 

include information regarding the net cost savings from moving

 

individuals from a nursing home to the home- and community-based

 

services waiver program, the number of individuals transitioned

 

from nursing homes to the home- and community-based services waiver

 

program, the number of individuals on waiting lists by region for

 

the program, and the amount of funds transferred during the fiscal

 

year. The report shall also include the number of Medicaid

 

individuals served and the number of days of care for the home- and

 

community-based services waiver program and in nursing homes.

 

     (3) The department shall develop a system to collect and


 

analyze information regarding individuals on the home- and

 

community-based services waiver program waiting list to identify

 

the community supports they receive, including, but not limited to,

 

adult home help, food assistance, and housing assistance services

 

and to determine the extent to which these community supports help

 

individuals remain in their home and avoid entry into a nursing

 

home. The department shall provide a progress report on

 

implementation to the senate and house appropriations subcommittees

 

on community health and the senate and house fiscal agencies by

 

June 1 of the current fiscal year.

 

     (4) The department shall maintain any policies, guidelines,

 

procedures, standards, and regulations in order to limit the self-

 

determination option with respect to the home- and community-based

 

services waiver program to those services furnished by approved

 

home-based service providers meeting provider qualifications

 

established in the waiver and approved by the centers for Medicare

 

and Medicaid services.

 

     Sec. 1690. (1) The department shall submit a report to the

 

house and senate appropriations subcommittees on community health,

 

the house and senate fiscal agencies, and the state budget director

 

by April 1 of the current fiscal year, to include all data

 

collected on the quality assurance indicators in the preceding

 

fiscal year for the home- and community-based services waiver

 

program, as well as quality improvement plans and data collected on

 

critical incidents in the waiver program and their resolutions.

 

     (2) The department shall submit a report to the house and

 

senate appropriations subcommittees on community health, the house


 

and senate fiscal agencies, and the state budget director by April

 

1 of the current fiscal year, to include all data collected on the

 

quality assurance indicators in the preceding fiscal year for the

 

adult home help program, as well as quality improvement plans and

 

data collected on critical incidents in the adult home help program

 

and their resolutions.

 

     Sec. 1692. (1) The department is authorized to pursue

 

reimbursement for eligible services provided in Michigan schools

 

from the federal Medicaid program. The department and the state

 

budget director are authorized to negotiate and enter into

 

agreements, together with the department of education, with local

 

and intermediate school districts regarding the sharing of federal

 

Medicaid services funds received for these services. The department

 

is authorized to receive and disburse funds to participating school

 

districts pursuant to such agreements and state and federal law.

 

     (2) From the funds appropriated in part 1 for medical services

 

school-based services payments, the department is authorized to do

 

all of the following:

 

     (a) Finance activities within the medical services

 

administration related to this project.

 

     (b) Reimburse participating school districts pursuant to the

 

fund-sharing ratios negotiated in the state-local agreements

 

authorized in subsection (1).

 

     (c) Offset general fund costs associated with the medical

 

services program.

 

     Sec. 1693. (1) The special Medicaid reimbursement

 

appropriation in part 1 may be increased if the department submits


 

a medical services state plan amendment pertaining to this line

 

item at a level higher than the appropriation. The department is

 

authorized to appropriately adjust financing sources in accordance

 

with the increased appropriation.

 

     (2) The department shall ensure that all public entities

 

eligible for special Medicaid reimbursement that participate in the

 

Medicaid program are aware of the existence of these programs.

 

     Sec. 1694. The department shall distribute $1,122,300.00 to an

 

academic health care system that includes a children's hospital

 

that has a high indigent care volume.

 

     Sec. 1699. (1) The department may make separate payments in

 

the amount of $45,000,100.00 directly to qualifying hospitals

 

serving a disproportionate share of indigent patients and to

 

hospitals providing GME training programs. If direct payment for

 

GME and DSH is made to qualifying hospitals for services to

 

Medicaid clients, hospitals shall not include GME costs or DSH

 

payments in their contracts with HMOs.

 

     (2) The department shall allocate $45,000,000.00 in DSH

 

funding using the distribution methodology used in fiscal year

 

2003-2004.

 

     (3) The department shall allocate $100.00 in DSH funding to

 

unaffiliated hospitals and hospital systems that received less than

 

$900,000.00 in DSH payments in fiscal year 2007-2008 based on a

 

formula that is weighted proportional to the product of each

 

eligible system's Medicaid revenue and each eligible system's

 

Medicaid utilization, except that no payment of less than $1,000.00

 

shall be made.


 

     (4) By September 30 of the current fiscal year, the department

 

shall report to the senate and house appropriations subcommittees

 

on community health and the senate and house fiscal agencies on the

 

new distribution of funding to each eligible hospital from the GME

 

and DSH pools.

 

     (5) The department shall form a workgroup on DSH funding

 

consisting of representatives from hospitals and hospital systems

 

receiving DSH funding and the Michigan health and hospital

 

association. The workgroup shall work to derive a new DSH formula

 

or formulas designed to provide equitable payments to qualifying

 

hospitals. The department shall report to the senate and house

 

appropriations subcommittees on community health and the senate and

 

house fiscal agencies on the results of the workgroup's efforts by

 

March 1 of the current fiscal year.

 

     Sec. 1711. The department shall maintain the 2-tier

 

reimbursement methodology for Medicaid emergency physicians

 

professional services that was in effect on September 30, 2002.

 

     Sec. 1712. (1) Subject to the availability of funds, the

 

department shall implement a rural health initiative. Available

 

funds shall first be allocated as an outpatient adjustor payment to

 

be paid directly to hospitals in rural counties in proportion to

 

each hospital's Medicaid and indigent patient population.

 

Additional funds, if available, shall be allocated for

 

defibrillator grants, emergency medical technician training and

 

support, or other similar programs.

 

     (2) Except as otherwise specified in this section, "rural"

 

means a county, city, village, or township with a population of not


 

more than 30,000, including those entities if located within a

 

metropolitan statistical area.

 

     Sec. 1718. The department shall provide each Medicaid adult

 

home help beneficiary or applicant with the right to a fair hearing

 

when the department or its agent reduces, suspends, terminates, or

 

denies adult home help services. If the department takes action to

 

reduce, suspend, terminate, or deny adult home help services, it

 

shall provide the beneficiary or applicant with a written notice

 

that states what action the department proposes to take, the

 

reasons for the intended action, the specific regulations that

 

support the action, and an explanation of the beneficiary's or

 

applicant's right to an evidentiary hearing and the circumstances

 

under which those services will be continued if a hearing is

 

requested.

 

     Sec. 1724. The department shall allow licensed pharmacies to

 

purchase injectable drugs for the treatment of respiratory

 

syncytial virus for shipment to physicians' offices to be

 

administered to specific patients. If the affected patients are

 

Medicaid eligible, the department shall reimburse pharmacies for

 

the dispensing of the injectable drugs and reimburse physicians for

 

the administration of the injectable drugs.

 

     Sec. 1731. The department shall continue an asset test to

 

determine Medicaid eligibility for individuals who are parents,

 

caretaker relatives, or individuals between the ages of 18 and 21

 

and who are not required to be covered under federal Medicaid

 

requirements.

 

     Sec. 1741. The department shall continue to provide nursing


 

homes the opportunity to receive interim payments upon their

 

request. The department shall make efforts to ensure that the

 

interim payments are as similar to expected cost-settled payments

 

as possible.

 

     Sec. 1757. (1) The department shall direct the department of

 

human services to obtain proof from all Medicaid recipients that

 

they are legal United States citizens or otherwise legally residing

 

in this country and that they are residents of this state before

 

approving Medicaid eligibility.

 

     (2) It is the intent of the legislature that the department

 

seek clarification from the federal government on whether states

 

can deny Medicaid eligibility to fugitive felons through a state

 

plan amendment or waiver. The department shall report to the

 

legislature on the results of this effort.

 

     Sec. 1764. The department shall annually certify rates paid to

 

Medicaid health plans as being actuarially sound in accordance with

 

federal requirements and shall provide a copy of the rate

 

certification and approval immediately to the house and senate

 

appropriations subcommittees on community health and the house and

 

senate fiscal agencies.

 

     Sec. 1767. The department shall study and evaluate the impact

 

of the change in the way in which the Medicaid program pays

 

pharmacists for prescriptions from average wholesale price to

 

average manufacturer price as required by the federal deficit

 

reduction act of 2005, Public Law 109-171. Upon release of the data

 

by the centers for Medicare and Medicaid services, the department

 

shall submit a report of its study to the senate and house


 

appropriations subcommittees on community health and the senate and

 

house fiscal agencies. If the department finds that there is a

 

negative impact on the pharmacists, the department shall reexamine

 

the current pharmaceutical dispensing fee structure established

 

under section 1620 and include in the report recommendations and

 

proposals to counter the negative impact of that federal

 

legislation.

 

     Sec. 1770. In conjunction with the consultation requirements

 

of the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b, and

 

except as otherwise provided in this section, the department shall

 

attempt to make the effective date for a proposed Medicaid policy

 

bulletin or adjustment to the Medicaid provider manual on October

 

1, January 1, April 1, or July 1 after the end of the consultation

 

period. The department may provide an effective date for a proposed

 

Medicaid policy bulletin or adjustment to the Medicaid provider

 

manual other than provided for in this section if necessary to be

 

in compliance with federal or state law, regulations, or rules or

 

with an executive order of the governor.

 

     Sec. 1775. If the state's application for a waiver to

 

implement managed care for dual Medicare/Medicaid eligible is

 

approved by the federal government, by April 1, 2012 the department

 

shall provide a report to the senate and house appropriations

 

subcommittees on community health and the senate and house fiscal

 

agencies. This report shall include information on the amount of

 

Medicare funding that would be provided to the state as a block

 

grant, the number of individuals who would be enrolled in the

 

program, which Medicaid health plans that would be participating,


 

and the estimated savings from the new program.

 

     Sec. 1777. From the funds appropriated in part 1 for long-term

 

care services, the department shall permit, in accordance with

 

applicable federal and state law, nursing homes to use dining

 

assistants to feed eligible residents if legislation to permit the

 

use of dining assistants is enacted into law. The department shall

 

not be responsible for costs associated with training dining

 

assistants.

 

     Sec. 1787. The department shall require the managed care

 

enrollment broker to maintain telephone numbers of Medicaid

 

beneficiaries and provide each Medicaid health plan with the

 

telephone number of that health plan's enrollees on a monthly

 

basis.

 

     Sec. 1793. The department shall consider the development of a

 

pilot project that focuses on the prevention of preventable

 

hospitalizations from nursing homes.

 

     Sec. 1804. The department, in cooperation with the department

 

of human services, shall work with the federal public assistance

 

reporting information system to identify Medicaid recipients who

 

are veterans and who may be eligible for federal veterans health

 

care benefits or other benefits.

 

     Sec. 1815. From the funds appropriated in part 1 for health

 

plan services, the department shall not implement a capitation

 

withhold as part of the overall capitation rate schedule that

 

exceeds the 0.19% withhold administered during fiscal year 2008-

 

2009.

 

     Sec. 1817. The department shall report to the legislature on


 

implementation of a policy that will prohibit billing for care made

 

necessary by preventable medical errors or adverse health events no

 

later than April 1 of the current fiscal year.

 

     Sec. 1819. The department shall use Medicaid health plan

 

encounter data in the development and revision of hospital

 

diagnosis related group pricing policy.

 

     Sec. 1822. The department, the department's contracted

 

Medicaid pharmacy benefit manager, and all Medicaid health plans

 

shall implement coverage for a mental health prescription drug

 

within 30 days of that drug's approval by the department's pharmacy

 

and therapeutics committee.

 

     Sec. 1826. The department shall develop a plan to expand and

 

improve the beneficiary monitoring program. This plan shall include

 

cost-effective methods to monitor and reduce unnecessary health

 

care services, including prescription drugs, improve coordination

 

of services between the primary care physician and mental health

 

and substance abuse service providers, and improve compliance with

 

prescribed medical management to reduce more costly use of

 

emergency services. The department shall submit this plan to the

 

house and senate appropriations subcommittees on community health,

 

the house and senate fiscal agencies, and the state budget director

 

by April 1 of the current fiscal year.

 

     Sec. 1829. Notwithstanding the removal of coverage for certain

 

optional Medicaid services, the department shall continue its

 

policy of providing coverage for emergency services. For this

 

purpose, the department shall continue to adhere to the guidelines

 

outlined in Medical Services Administration Bulletin MSA 09-28.


 

     Sec. 1832. (1) The department shall continue efforts to

 

standardize billing formats, referral forms, electronic

 

credentialing, primary source verification, electronic billing and

 

attachments, claims status, eligibility verification, and reporting

 

of accepted and rejected encounter records received in the

 

department data warehouse.

 

     (2) The department shall convene a workgroup on making e-

 

billing mandatory for the Medicaid program. The workgroup shall

 

include representatives from medical provider organizations,

 

Medicaid HMOs, and the department. The department shall report to

 

the legislature on the findings of the workgroup by April 1 of the

 

current fiscal year.

 

     (3) The department shall provide a report by April 1 of the

 

current fiscal year to the senate and house appropriations

 

subcommittees on community health and the senate and house fiscal

 

agencies detailing the percentage of claims for Medicaid

 

reimbursement provided to the department that were initially

 

rejected in the first quarter of fiscal year 2011-2012.

 

     Sec. 1835. The department shall develop and implement

 

processes to report rejected and accepted encounters to Medicaid

 

health plans. Medicaid health plans shall be permitted to report

 

additional medical records data obtained during medical record

 

audits to the encounter warehouse consistent with Medicare

 

guidelines.

 

     Sec. 1836. In addition to the guidelines established in

 

Medical Services Administration Bulletin MSA 09-28, medically

 

necessary optical devices and other treatment services for adult


 

Medicaid patients shall be covered when conventional treatments do

 

not provide functional vision correction. Such ocular conditions

 

include, but are not limited to, congenital or acquired ocular

 

disease or eye trauma.

 

     Sec. 1837. The department shall explore utilization of

 

telemedicine as a strategy to increase access to primary care

 

services for Medicaid recipients in medically underserved areas.

 

     Sec. 1842. (1) Subject to the availability of funds, the

 

department shall adjust the hospital outpatient Medicaid

 

reimbursement rate for qualifying hospitals as provided in this

 

section. The Medicaid reimbursement rate for qualifying hospitals

 

shall be adjusted to provide each qualifying hospital with its

 

actual cost of delivering outpatient services to Medicaid

 

recipients.

 

     (2) As used in this section, "qualifying hospital" means a

 

hospital that has not more than 50 staffed beds and is either

 

located outside a metropolitan statistical area or in a

 

metropolitan statistical area but within a city, village, or

 

township with a population of not more than 12,000 according to the

 

official 2000 federal decennial census and within a county with a

 

population of not more than 165,000 according to the official 2000

 

federal decennial census.

 

     Sec. 1847. (1) The department shall collect and report to the

 

senate and house appropriations subcommittees on community health

 

and the senate and house fiscal agencies the following information

 

by March 1 of the current fiscal year:

 

     (a) The number and percentage of medical residents by hospital


 

who were residents of Michigan prior to beginning their residency.

 

     (b) The number and percentage of medical residents by hospital

 

who took positions in the state of Michigan during 2011 immediately

 

following completion of their residency.

 

     (c) The distribution of these in-state placements by county

 

and by specialty.

 

     (d) The distribution of graduated medical residents in

 

medically underserved areas by physician specialty.

 

     (2) It is the intent of the legislature that Medicaid graduate

 

medical education payments in fiscal year 2012-2013 shall be made

 

using a formula that incorporates the data reported in subsection

 

(1).

 

     Sec. 1848. (1) A hospital or freestanding surgical outpatient

 

facility may report whether a registered nurse, qualified by

 

training and experience in operating room nursing, is present as a

 

circulating nurse in each separate operating room where surgery is

 

being performed for the duration of the operative procedure. This

 

section does not preclude a circulating nurse from leaving the

 

operating room as part of the procedure, leaving the operating room

 

as part of the operative procedure, leaving the operating room for

 

short periods, or, in accordance with employer rules or

 

regulations, being relieved during an operative procedure by

 

another circulating nurse assigned to continue the operative

 

procedure.

 

     (2) The department shall report any data collected pursuant to

 

subsection (1) on the use of a circulating nurse in the operating

 

room of hospitals and freestanding surgical outpatient facilities


 

to the legislature on an annual basis. The circulating nurse shall

 

assist administration in assuring regulatory compliance data are

 

collected, including the verification of the circulating nurse.

 

     Sec. 1849. (1) The department may use 50% of the funds

 

allocated for voluntary in-home visiting services for evidence-

 

based models.

 

     (2) As used in this section:

 

     (a) "Evidence-based" means a program or practice that meets

 

both of the following requirements:

 

     (i) The program or practice is governed by a program manual or

 

protocol that specifies the nature, quality, and amount of service

 

that constitutes the program.

 

     (ii) Scientific research using methods that meet high

 

scientific standards for evaluating the effects of the program must

 

have demonstrated, with 2 or more separate client samples, that the

 

program improves client outcomes central to the purpose of the

 

program.

 

     (b) "In-home visiting services" means a service delivery

 

strategy that is carried out in the homes of families or children

 

from conception to school age that provides culturally sensitive

 

face-to-face visits by nurses or other professionals trained to

 

promote positive parenting practices, enhance the socio-emotional

 

and cognitive development of children, improve health of the

 

family, and empower the family to be self-sufficient.

 

     Sec. 1850. The department shall allow Medicaid health plans to

 

assist with the redetermination process through outreach activities

 

to ensure continuation of Medicaid eligibility and enrollment in


 

managed care. This may include mailings, telephone contact, or

 

face-to-face contact with beneficiaries enrolled in the individual

 

Medicaid health plan. Health plans may offer assistance in

 

completing paperwork for beneficiaries enrolled in their plan.

 

     Sec. 1851. The department is encouraged to consider seeking

 

bids for statewide or regional contracts for Medicaid durable

 

medical equipment services.

 

     Sec. 1852. The department shall work with the department of

 

energy, labor, and economic growth to integrate fully state

 

inspections of nursing facilities.

 

     Sec. 1853. The department shall form a workgroup composed of

 

representatives from the Medicaid HMOs and the Michigan association

 

of health plans to develop revisions to the process of

 

automatically assigning new Medicaid recipients to HMOs if they do

 

not choose an HMO upon enrollment. The department shall report on

 

the results of the workgroup's findings to the senate and house

 

appropriations subcommittees on community health and the senate and

 

house fiscal agencies by March 1 of the current fiscal year.

 

     Sec. 1854. The department shall work with a provider of kidney

 

dialysis services and renal care products that has completed a

 

centers for Medicare and Medicaid services end stage renal disease

 

management demonstration project to design and implement a

 

statewide chronic kidney disease management program as authorized

 

under section 2703 of the patient protection and affordable care

 

act, Public Law 111-148. The department shall work with the

 

provider to develop a chronic condition health home program for

 

Medicaid enrollees identified with chronic kidney disease and


 

transitioning through the first 3 months of dialysis. The

 

department and the provider will create metrics for the measurement

 

of the program that include both cost savings and clinical

 

improvement. The department shall report to the senate and house

 

appropriations subcommittees on community health to provide

 

progress updates on compliance with this section.

 

     Sec. 1855. The department is encouraged to consider the

 

feasibility of a revenue-neutral, financially risk-averse Medicaid

 

patient optimization solution for the support of emergency

 

department redirection for non-emergent patients.

 

     Sec. 1856. If funds become available it is the intent of the

 

legislature that funding for graduate medical education be

 

increased.

 

 

 

 

 

PART 2A

 

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS

 

FOR FISCAL YEAR 2012-2013

 

GENERAL SECTIONS

 

     Sec. 1901. It is the intent of the legislature to provide

 

appropriations for the fiscal year ending on September 30, 2013 for

 

the line items listed in part 1. The fiscal year 2012-2013

 

appropriations are anticipated to be the same as those for fiscal

 

year 2011-2012, except that the line items will be adjusted for

 

changes in caseload and related costs, federal fund match rates,

 

economic factors, and available revenue. These adjustments will be

 

determined after the January 2012 consensus revenue estimating


 

conference. The January 2012 consensus revenue estimating

 

conference shall include estimates for fiscal year 2011-2012,

 

fiscal year 2012-2013, and fiscal year 2013-2014 for the following:

 

    (a) State revenue.

 

    (b) Prison population and correction expenditures.

 

    (c) Annual percentage growth in the school aid basic

 

foundation allowance.

 

    (d) Medicaid expenditures.

 

    (e) Human service caseloads and expenditures.