Report: Georgia could reap millions in fed healthcare aid

A healthcare lobbying group says Georgia will receive more than $700 million in Medicaid funding if a federal economic stimulus package is passed.

Washington, D.C.-based Families USA is pushing Congress to approve an estimated $40 billion healthcare package, as part of the incoming Obama Administration’s expected economic measures.

Ron Pollack is the executive president of left-leaning advocacy group. He says the funding will have a trickle-down effect locally:

“The increased money for the State of Georgia would provide approximately $708 mi llion dollars in new funding to the state, which in turn would create approximately 12,600 additional jobs and spur about 1.3 billion dollars in new business activity in the state.”

Recent State budget cutbacks pared five percent off Medicaid and PeachCare – some 114 million dollars.

A recent Georgia State University report pegs the state at sixth place nationally in uninsured residents. In 2007, about 18 – percent of all Georgians went without health care – above the national average of 15%.

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DCH plans extra fees on private health insurers

In order to keep Medicaid and Peachcare going in its current form, the state’s top health agency wants to expand a plan that would charge private health insurers millions of dollars in extra fees.

The Department of Community Health says the call for statewide agency budget cuts makes the action necessary.

DCH is looking to account for over 100-million dollars in needed funds. Without it, the agency says it might have to drop some people from the rolls of Medicaid and Peachcare.

State lawmakers in 2005 passed a measure approving the fees charged of three national companies managing Medicaid and Peachcare.

Dr. Carla Denise Edwards, DCH chief of staff, says this plan expands fees to HMO’s across the state. It's something Edwards says is crucial:

"Without the managed care fee, the state of Georgia is at risk of losing $90 million that would normally be available to ensuring that we had funds for the Peachcare for Kids program, as well as the Medicare program. Without this fee, we don't have the money to run those two programs".

Kirk McGhee is executive director of the Georgia Association of Health Plans, a non-profit industry trade group. He says this would hurt some individuals and small businesses by "pricing them out" of coverage. McGhee says this is something that has to run through the Legislature.

"Certainly I would think that Georgia taxpayers and consumers and voters would want those decisions to be made not by a single bureaucracy in the state, but be made by the people they elected to make such decisions".

Data breach of Medicaid and Peachcare enrollees

Georgia's Department of Community Health is investigating how private information of roughly 70,000 Medicaid and PeachCare enrollees ended up on a publicly-accessible website. The data included names, birth dates, social security numbers and some medical information of members who get their care through WellCare Health Plans.

Director of Compliance for Georgia's Department of CommunityHealth, Ruth Carr said it was due to human error. "Our foremost concern was making sure all of the affected members were notified as soon as possible," said Carr.

According to a WellCare spokesperson, the information became unsecured on February 12th, when a routine update accidentally removed the security component for the electronic data.

WellCare will offer one year of free credit monitoring to affected Georgians who want it.

Carr said that last year, when patient data stored on a CD was lost in the mail, the Department of Community Health's investigation turned up no result.

Perdue in D.C. urging S-CHIP fixes

Governor Sonny Perdue was joined by four fellow governors on Capitol Hill today, imploring U.S. lawmakers to re-examine how the national health care program for low-income children is funded.

Perdue was flanked by his counterparts from Mississippi, Massachusetts, Ohio, and Washington State. They were there to deliver their concerns to a House subcommittee over how S-CHIP, or state children’s health insurance programs, is supported on the federal level.

Perdue says Georgia’s program, known as PeachCare, has worked too well, to the point of being penalized.

"We’ve enrolled so many kids in S-CHIP that our percentage of uninsured children has dropped dramatically. And because of this flawed funding model--that partially bases states’ allotments on the number of uninsured children--Georgia, along with our neighbors like Mississippi and North Carolina, are facing growing shortfalls".

Perdue says the growth of Georgia by nearly a million people in five years is not reflected in the money it gets from the federal government. Georgia’s PeachCare program serves more than 230-thousand low-income children.

Congress recently passed an extension for S-CHIP, but without further action, funding would go dry by April 2009.

Shriners to help kids on PeachCare

About 500 Georgia children are set to receive free healthcare at Shriners Hospitals. It's part of a partnership between Shriners and the state to care for children on PeachCare. PeachCare is the state's healthcare program for uninsured children. Shriners Hospitals’ focus on orthopedic conditions, burn injuries, spinal cord injury rehabilitation, and cleft lip and palate repair.

PeachCare expansion override fails

In Washington, D.C. today, House Democrats failed to override President George Bush’s veto of the children’s health insurance program S-CHIP. In Georgia, the program is called PeachCare, and provides health insurance for a quarter million children of the working poor. Nationwide, the program now subsidizes health care insurance coverage for about six million children. The vetoed bill would have added four million more children.

PeachCare for Kids to end in November

Come November, more than 270,000 children enrolled in Georgia's PeachCare program won't have health insurance.

PeachCare for Kids covers children of Georgia's working poor.

The federal legislation behind state programs like PeachCare has not been reauthorized, and Washington lawmakers have less than two weeks to get it done.

So far, the U.S. House and Senate are bickering over their different versions of the bill, and President Bush has vowed to veto either version.

Mark Trail, with Georgia's Department of Community Health, says if Washington fails to resolve this, the program has only enough money to tide over through the end of October:

“If there is no re-authorization or no action from Congress, then Georgia will send notices to the members' families, advising them that PeachCare for Kids will terminate at the end of October.”

Trail says if lawmakers fail to reach a compromise, they could still decide to continue the federal program as is, until they're ready to reauthorize it.

Governor Sonny Perdue and House Speaker Glenn Richardson have issued statements urging Congress to resolve the issue by the September 30^th deadline.

Increased Medicaid payments could give hospitals much-needed boost

The state agency in charge of Medicaid wants to take advantage of an enrollment slowdown to increase payments to doctors and hospitals.

Years of low reimbursements have left many providers of health care to Medicaid and PeachCare patients in the red. Trauma care hospitals have suffered the most. Atlanta’s Grady hospital has partially attributed its financial crisis to this situation.

In recognition, the Department of Community Health plans to reimburse them at a higher rate than other hospitals.

Clash over PeachCare funding

Georgia Republicans and Democrats are feuding over the PeachCare health insurance program for poor children. Last night, Georgia Senators Johnny Isakson and Saxby Chambliss rejected a $35-million-dollar expansion to PeachCare’s federal parent program. The Senators said it’s a step toward a government-run healthcare system funded by a regressive tax increase. The measure would fund the expansion through higher tobacco taxes. Today the Democratic Party of Georgia called the Senators’ votes a “severe blow” to Georgia’s working families and children. 200,000 poor children in Georgia are currently enrolled in PeachCare. The proposed extension would add another 100,000 to the program.

United against PeachCare program expansion

Months after Georgia ran short of money for PeachCare children's health insurance, Republicans in the state's congressional delegation are opposing efforts to expand its parent program in Washington. Senators Saxby Chambliss and Johnny Isakson said today that they will vote against legislation to increase federal spending for the State Children's Health Insurance Program – or S-CHIP. In the House, all seven of the state's Republican members voted last night against a broader expansion that drew nearly unanimous GOP opposition. Representative Jim Marshall of Macon was the lone Georgia Democrat to join them.

Congress to vote on PeachCare expansion

Congress is about to vote on legislation to renew and expand Georgia's PeachCare and similar child health plans nationwide.

The House bill would increase spending on the Children's Health Insurance Program by $50 billion. In Georgia, supporters say, the expansion could provide health care for 210,000 more children who are eligible for PeachCare but are not enrolled. State officials have capped PeachCare's rolls at 295,000 children because of budget concerns.

The Senate bill is less ambitious, but still would increase spending by $35 billion. Higher tobacco taxes would fund the expansions. The House bill also would reduce payments to managed care companies that oversee some states' health plans, including Georgia's PeachCare and Medicare.

Sen. Johnny Isakson says he cannot support the Senate bill. He says expanding PeachCare would be a move towards universal health care.

"I think [universal health care] is problematic," he says. "It has never worked anywhere in the world. I don't know why we'd think it would work here."

Sen. Saxby Chambliss agrees. His spokeswoman adds that Chambliss will not support anything that includes tax increases.

President Bush has threatened to veto the proposals. Without a new law, however, the program will expire on September 30. Isakson predicts the debate will go down to the wire.

Perdue quiet as governors lobby Bush on child health program

Gov. Sonny Perdue did not sign a letter that the National Governors Association sent President Bush urging him to reauthorize PeachCare and similar programs.

Two Democratic and two Republican leaders of the National Governors Association signed the letter, calling for a renewal of the State Children's Health Insurance Program. The governors say the program for poor and working-class families is a "critical safety net." Without action, it will expire in September.

Governor Perdue is part of the association's leadership team, but he did not sign the letter. A spokesman says Perdue does not support tax increases, or the idea of universal state-sponsored health care.

The leading proposal—a bipartisan Senate bill—would raise tobacco taxes to fund an expansion of the program.

Bush has threatened to veto it.

In the meantime, PeachCare has limited the number of children it serves. State officials say they’ll lift the cap once Washington reauthorizes the program.

Senate committtee backs PeachCare

Georgia’s health insurance program for poor children has a vote of confidence from the U.S. Senate. Today the Senate Finance Committee voted to re-authorize federal funding to subsidize state healthcare programs like PeachCare. Republicans on the committee defied President George Bush’s threat to veto the plan. Under the proposal, the government would pay for the subsidy through higher tobacco taxes.

State fines managed care group for the poor

The state is fining one of its new Medicaid managed care organizations $3.7 million for failing to provide timely patient care.

An audit by the Georgia Department of Community Health found Peach State Health Plan was slow in granting Medicaid families and Peachcare kids permission to receive medical services.

Agency spokesperson Amanda Seals says DCH stands by its year-old privatized managed care program and will work with Peach State.

"The Department takes their obligations very seriously," says Seals. "But, we also still feel that these plans are doing a better job of managing health care and improving the health outcomes while getting a better value for the state dollar."

Peach State is appealing the fine. In the meantime, it has replaced its top executive. The company provides health services for nearly 280 thousand poor and working-class Georgians.

Peachcare accepts new applications

State officials once again are allowing working-class families to sign up their children for the Peachcare health program.

The state board of community health voted unanimously today to lift the enrollment freeze that had been in place since March, when Peachcare appeared to be running out of money.

There's one catch: officials are limiting the program to 295,000 children. That leaves just 25,000 slots open. Most of those spaces will go to families already on Peachcare's waiting list.

"We certainly hope very soon to see Peachcare re-open for all eligible children," says consumer health advocate Linda Lowe of Families First.

State health officials say they will re-evaluate the cap after Congress reauthorizes the federal program, known as S-CHIP. Republicans and Democrats on the U.S. Senate Finance Committee tentatively have agreed to increase funds for S-CHIP by $35 billion over five years. The new money would come from increased taxes on tobacco products.

PeachCare gets back on track

PeachCare enrollment re-opens later this week. A huge budget shortfall a few months ago forced Georgia to stop accepting new patients into the state’s health insurance program for poor children. But some warn that opening enrollment will only be temporary unless Congress agrees to fund PeachCare. The state Board of Community Health, which oversees PeachCare, has been asked to cap enrollment at 295,000 children.

Peachcare set to open its doors in July

The Georgia Department of Community Health plans to allow families to enroll in Peachcare again, starting next month. But, officials want to cap the number of children the program will serve at 295,000.

The decision would open up about 20,000 spots. Already 16,000 children are on the waiting list.

"This is a step in the right direction," says consumer health advocate Linda Lowe of the nonprofit Families First. "We need to move to the point where the enrollment is re-opened for good."

The state froze enrollment in March. Officials feared Peachcare was running out of money.

Since then, the state and federal government have solved the immediate crisis with emergency funds. But Congress probably will not re-authorize the program until this fall. State officials say they will consider lifting the enrollment cap after Congress acts.

The board of community health will vote officially on lifting the enrollment freeze on July 12. Officials have scheduled a public hearing on June 27.

Emergency funding for PeachCare

Georgia’s PeachCare health insurance program for poor children is getting some help from Congress.

Congressional budget writers have agreed to provide stopgap funding for PeachCare, which is running out of federal money.

The money is included in a war spending package, over objections from the White House.

Congress hopes the bill will head to President George Bush by week’s end.

The midyear budget: winners and losers

When Governor Sonny Perdue signed the midyear budget Tuesday, he admitted it helped some state agencies but hurt others.

"I've been trying to persuade my legislative brethren [who write the budget] there were unmet needs and these things would happen," Perdue told reporters. "Bad decisions have consequences."

The consequences will be felt strongly by the following "losers" in the 2007 amended budget:

Prosecuting Attorneys Council Executive Director Richard Malone says the budget shortchanges district attorneys' offices by $1.2 million.

Malone says every employee, except the district attorneys, will be furloughed without pay for up to six days.

"The DAs themselves will be okay," Malone said. "It's the younger and the less financially stable folks—meaning those that get paid a lot less—that are going to suffer the most."

Malone worries that line prosecutors and staff will become discouraged and go job-hunting elsewhere.

Adult basic education teachers are in an even worse bind: they could be furloughed for an entire month because the Department of Technical Education did not receive the $800,000 it needs for salaries in June.

Spokesman Mike Light says the department is seeking other sources of money.

"If we're going to do anything to save the people and keep them on their jobs," Light says, "It would have to be local funds from the college level or somewhere else."

About 96,000 students are in the programs that could be suspended. They include high-school dropouts in GED classes, and immigrants learning English.

On the other hand, here are some "winners":

Administrators of the cash-strapped Peachcare child health program are relieved. They will receive up to $81 million to reimburse providers.

But, they will not lift the freeze on enrollment until October or later, according to Mark Trail, who oversees the program.

Trail says state officials want to make sure that Congress reauthorizes the program and changes its federal funding formula.

About 284,000 children from low-wage and middle-class families use Peachcare.

Finally, the budget brings good news for public schools. They will get $164 million to pay teachers and school nurses.

No special session: Perdue strikes property tax cut before signing budget

Gov. Sonny Perdue used his line-item veto power Tuesday to strike a tax cut before signing the 2007 amended budget, which contains emergency funding for education and the Peachcare child health plan.

Perdue's action reverses his earlier veto of the entire budget, which dictates state spending until July. He said this was not what he had wanted to do. He had hoped to call lawmakers back to the Capitol for a special session on the midyear budget, but ruled it out after meeting resistance from House leaders.

"It would've been tough on the members of the House and Senate, who are citizen-legislators, to come back not knowing how long that would be," Perdue said. "It would've been a show of power. It would've been futile."

Perdue denies his decision is a personal rebuke to House Speaker Glenn Richardson, who accused Perdue of showing lawmakers "his backside" by vetoing the budget. Richardson, who was once Perdue’s House floor leader, now uses softer words.

"Sometimes friends disagree, but the House will not compromise when it comes to defending the taxpayers of Georgia," he said in a written statement. He expressed disappointment that Perdue has vetoed $142 million one-time tax credit for property owners.

"The House still believes that if we can't all agree on how to spend the money, the best thing to do is to return it to the people who sent it to us," he said. "We would rather have it go back to the taxpayers than be hoarded for the government to spend another day."

But by striking the tax cut from the budget, Perdue says the money will enable the state to prop up its reserves at a time when economic growth is slowing.

"I think it's prudent at this time to be fiscally conservative," he said.

House leaders contend the reserves are in good shape now. Speaker Pro Tem Mark Burkhalter says he can't support the governor's decision.

"Aside from the fact that it's vetoing a tax cut, trying to understand how you can veto legislation, after sending out a press release and line-item veto something that’s a portion of what you already vetoed."

Burkhalter says House members are considering their next move, and they still want a tax cut.
Perdue's decision won praise from Lt. Gov. Casey Cagle, who presides over the State Senate.

"Leadership is about stepping forward with solutions in situations where compromise seems beyond reach. The Governor exercised strong character and courageous leadership today," said Cagle. "Every Georgian should be proud of the outcome of this process."

But Perdue was not as proud.

"Who said I felt positive about it?" Perdue asked. "It's the only option I believe that takes care of Peachcare and midyear educational reserves, but it still leaves some needs unmet."

Perdue says state workers-including prosecutors and public defenders-could face furloughs.

He has not decided yet whether to sign the 2008 budget lawmakers approved. He says he will take "corrective action" if necessary.