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January 31, 2005


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MHA's Monday Executive Briefing
January 31, 2005

In this week's edition...
State News
1. Cochran announces promotions, new hires
2. Pickering loses Ag Committee Seat
3. Judge to review order halting Medicaid benefits
4. Reeves says state will try to get $20 M in anti-tobacco money
5. Mississippi Appeals Court judge to take oath
6. GOP senator backs cigarette tax to fix budget wreck
7. Rally backs boost in cigarette tax
8. House, Senate working on separate plans to trim Medicaid
9. State Legislators' 2004 Personal Disclosures
10. BIPEC scores
National News
11. Registration now open for AHA Annual Meeting
12. Senate Doctors Share Interests, Not Styles
13. Kerry Battling Bush on Health Care Plan
14. Senate confirms Leavitt as HHS secretary
15. AHA Advocacy Day
16. Yale launches health care leaders' program
17. New drug program to account for nearly one-quarter of Medicare spending by 2015
18. Republicans, Democrats lay out Senate agendas

State News 

1. Cochran announces promotions, new hires
   As the new head of the Appropriations Committee, Sen. Thad Cochran, R-Miss., is hiring new staff and promoting old staff.
   Fred Pagan of Biloxi has been moved from Cochran's personal office to become the senator's assistant on the Appropriations Committee. Blake Thompson of Rienzi, who previously served as a legislative assistant, is now Cochran's legislative director, and Weezie Van Kirk of Gulfport moves up from staff assistant to legislative aid.
   New on staff are Brad Fuller of Starkville and Brad Davis of Ripley. Fuller is a legislative aide and Ripley will become a new legislative assistant at the end of February.

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2. Pickering loses Ag Committee Seat
   When the U.S. House reorganized its commitees last week, Rep. Chip Pickering, R-3rd District, lost his seat on the Agricultural Committee. The House leadership is getting strickter about allowing lawmakers to sit on more than one premium committee, and Pickering chose to keep his seat on the House Energy and Commerce Committee.
   Pickering will sit on four subcommittees on the Energy and Commerce panel. He'll keep his seat on the Telecommunications and the Internet, Energy and Air Quality and Health subcommitees and will also join the Oversight and Investigations subcommittee.

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3. Judge to review order halting Medicaid benefits
   U.S. District Judge Henry T. Wingate on Feb. 3 will review a temporary restraining order that has been keeping the Poverty-Level, Aged and Disabled (PLAD) beneficiaries on Medicaid so lawmakers can address their future.
   While no legislation has been passed to reinstate the PLADs, plaintiffs in the case hope Wingate will allow more time. Rep. Steve Holland, D-Plantersville, said PLAD benefits cannot be cut before April 1, and he is optimistic legislation will be approved by then.
   Under federal law, Medicaid recipients must be given 30 days notice before benefits are changed. Also, coverage cannot be terminated in the middle of the month. Most of the recipients will qualify for a new Medicare drug card plan that begins Jan. 1.

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4. Reeves says state will try to get $20 M in anti-tobacco money
   Lawmakers are divided over a decision by the Mississippi Health Care Trust Fund board to pursue legal action to gain control of $20 million that goes to the Partnership for a Healthy Mississippi for use in Mississippi's ailing Medicaid program. The board wants to divert those funds.
   House Public Health Chairman Steve Holland, D-Plantersville, on Jan. 27 said the Partnership has improved the lives of the state's young population with its anti-smoking message. However, he feels that Medicaid should get a portion of the money. Sen. Hillman Frazier, D-Jackson, who is a member of the Senate Public Health Committee, said the state should not interrupt the positive work of the Partnership, which received national recognition recently.
   Former Attorney General Mike Moore, who heads the Partnership, vowed to fight any attempt by the state to touch the money. Moore said the plan was engineered by Gov. Haley Barbour, who had proposed in his budget to use the $20 million for Medicaid.
   Moore said Reeves' board doesn't have the authority to file the lawsuit. He said the board has to get permission from Attorney General Jim Hood, a Democrat.
   "Facing difficult budget decisions, recovering millions for the Health Care Trust Fund will help meet health care needs of Mississippians that may otherwise go unmet," Reeves, who is chairman of the Trust Fund board, said in the release. Moore said Wednesday's vote was 4-3 and the item was not on the agenda.
   Moore also said that Dr. Wallace Conerly, who sits on both the Trust Fund and Partnership boards, was in Washington, D.C. Holland, who is also on the board, said he wasn't at the meeting.
   Medicaid Executive Director Dr. Warren Jones, in a statement, said "Health care for Medicaid recipients is more important than advertising."

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5. Mississippi Appeals Court judge to take oath
   Mississippi Court of Appeals Judge David Ishee formally took the oath of office Jan. 28 during a ceremony in Gulfport. Ishee, 40, of Gulfport, was appointed by Barbour on Sept. 3, 2004, to the vacancy created by the death of Court of Appeals Judge James Thomas.
   Ishee took the oath of office at the time of his appointment. It is traditional to have a formal investiture ceremony at a later time.
   Ishee previously served six years as a municipal judge in Pascagoula and five years in Gulfport. He also served as youth court judge pro tem for Jackson County for five years. He earned his law degree from the University of Mississippi School of Law.

Judge's seat vacant at week's end
   Gov. Haley Barbour is waiting on a list of recommended candidates from a judicial advisory committee before appointing a judge to fill the seat of retiring Chancery Judge Glenn Barlow.
   Barlow, who announced late last year that he was retiring for health reasons, said Jan. 25 he was finishing his last week as chancery judge that week. Since he announced his retirement, Barlow has worked a full schedule in order to clear his docket for the next judge. This month, Barlow cleared 80 to 100 cases.   

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6. GOP senator backs cigarette tax to fix budget wreck
   Mike Chaney, R-Vicksburg, is breaking ranks with his chamber's leadership, the governor and GOP, saying he would support a cigarette tax increase, given the dire public education budget situation. For the full story from The Sun Herald, click here.

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7. Rally backs boost in cigarette tax
   More than 100 advocates of a $1-per-pack increase in the cigarette tax pushed their cause on Jan. 25 at a Capitol rally. For the full story from The Clarion-Ledger, click here.

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8. House, Senate working on separate plans to trim Medicaid
   Medicaid patients could get fewer prescriptions filled and their emergency room visits and overnight hospital stays would be further limited. Hospice patients would have to spend more of their own money before receiving government coverage. And, smokers would have to pay an extra 50 cents of tax on every pack of cigarettes.
   Those are some of the ideas House members are considering to control the state's inflated Medicaid budget. Leaders say the combination of service cuts and a tax increase is needed to stabilize the rapidly expanding program. For the full story from The Sun Herald, click here.

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9. State Legislators' 2004 Personal Disclosures
   Ever wonder what outside financial interests a legislator in your state might have? Now you can find out with a couple of clicks of your mouse. Putting the country's government ethics laws to work, the Center for Public Integrity on Jan. 24 made thousands of state legislators' outside interest disclosure filings available to online users. For more, click here.

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10. BIPEC scores
   The Business and Industry Political Education Committee (BIPEC), of which the Mississippi Hospital Association (MHA) is a member, recently released its evaluation of legislators’ voting records for the 2004 session.  BIPEC rated Senators and Representatives on a range of votes it deemed important to creating jobs in Mississippi.  Issues scored included votes in favor of civil justice reform, fee reductions workforce training initiatives, and reducing the size of government.  A score of 76 – 100 indicates a business champion; 56 – 75 indicates moderate business support; 41 – 55 shows marginal business help and a score from 0 – 54 labels a lawmaker as anti-business. To see Senate scores, click here. To see House scores, click here

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National News

11. Registration now open for AHA Annual Meeting
   Registration is now open for the 2005 AHA Annual Membership Meeting, May 1-4 in Washington, DC. Register online, by fax or mail. Need a registration brochure mailed to you? Call the AHA at (800)424-4301.
   Register now and get the special early bird rate of $595. Take advantage of special educational programming, including an opportunity to earn ACHE credit. Questions? Call AHA Member Services at (800)424-4301.

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12. Senate Doctors Share Interests, Not Styles
   As the Senate's only doctor, Bill Frist became the go-to guy on health care and was diagnosed as having the bedside manner needed in a majority leader. But now there's another doctor on the scene — newly elected Oklahoma obstetrician Tom Coburn — and while the two Republicans share a passion for medicine, they are far apart on how they approach politics. For the full story, click here.

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13. Kerry Battling Bush on Health Care Plan
   Sen. John Kerry hasn't gone away quietly. In his first major speech since conceding the presidential election, the Massachusetts Democrat took aim at President Bush's health care proposals on Jan. 27, saying they were irresponsible and won't meet the needs of children and low-income families who don't have health coverage. For the full story, click here.

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14. Senate confirms Leavitt as HHS secretary
   The Senate confirmed Michael Leavitt's nomination for HHS secretary on Jan. 26 by voice vote. Currently the administrator of the Environmental Protection Agency, Leavitt will replace Tommy Thompson. Despite some concerns among Democrats about his stand on Medicaid reform, his nomination process went smoothly. As a former governor of Utah, he secured the first waiver from HHS allowing a state to finance an expansion of its Medicaid roll by cutting benefits to other enrollees. The Senate Health, Education, Labor and Pensions Committee already passed his nomination unanimously. On Jan. 25, the Senate Finance Committee passed it on a voice vote. As HHS secretary, Leavitt will oversee an agency with a budget of nearly $550 billion and 67,000 employees. 

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15. AHA Advocacy Day
   The American Hospital Association thanks all of you who have confirmed participation in their Limited-Service Hospital Advocacy Day on February 16th. They've had a good turn out so far, but need more participation so that our message is heard loud and clear on Capitol Hill. Please bring a physician with you so that they can help present the impact of this issue to Congress. 
   From 9 a.m. till 10 a.m., AHA will host a radio news release taping in the Continental Suite of the Ronald Reagan Building, with a chance to send your message to radio outlets back home. From 10 a.m. till 11 a.m., there will be a federal update and briefing. Lunch to-go will be served at 11 a.m. Capitol Hill visits will follow.
   AHA's special rate at the Marriott Metro Center Hotel expires on February 1. Make your reservations before then to take advantage of the savings.  Call Marriott reservations at (800) 228-9290 and ask for the "American Hospital Association" special rate of $249.
    This is the beginning of the 109th Congress - a key time to ensure that legislators know the negative impact limited-service physician-owned facilities have on patients, your hospital, communities and our health care delivery system. Please be sure to contact your senators and representatives and make an appointment to see them on Wednesday, February 16th after 11 a.m.
   To RSVP or for more information, contact Kate Hockman of AHA at (202) 626-2253 or
khockman@aha.org

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16. Yale launches health care leaders' program
   Yale School of Management invites hospital leaders to apply for a slot in a charter class limited to just thirty individuals in its new executive MBA program for health care leaders. Starting in August 2005, faculty from Yale's schools of Management, Medicine, and Public Health will offer Yale MBA for Executives: Leadership in Healthcare. The curriculum combines marketing, financial, strategic and organizational skills with in-depth exploration of human, economic, political, and technological issues. The program schedule combines summer "in-residence" sessions with weekend classes to enable students to fulfill the requirements of the Yale MBA in twenty-two months without career disruption. The charter class will be drawn from organizations spanning the health care world, enabling students to learn about the managerial challenges facing other sector participants. The application deadline is March 16. For more information, visit
 www.mba.yale.edu/MBA-E.

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17. New drug program to account for nearly one-quarter of Medicare spending by 2015
   Despite a projected drop in the federal budget deficit for fiscal 2005, Medicare and Medicaid spending will grow by 9.4 % and 5.6%, respectively, the Congressional Budget Office said Jan. 25. Spending on Medicare is estimated to reach $325 billion for fiscal 2005, up from $297 billion is fiscal 2004. The new drug benefit, which begins Jan. 1, 2006, is expected to increase spending by $47 billion that year and reach $174 billion in 2015, the CBO estimates, when it will make up 23% of the $766 billion in total Medicare spending. By then, Medicare spending will increase by 157% compared to 2004 figures. Medicaid spending is expected to reach $186 billion in fiscal 2005, up from $176 billion for fiscal 2004. By 2015, the figure will climb to $392 billion, up 122% from the 2004 figure. The rate of spending growth on Medicare is projected at 9.8% annually from 2005-2015, while Medicaid is projected to grow at a rate of 7.8%, according to the report. Overall, the deficit is projected to decrease to $368 billion in fiscal 2005, down $44 billion from a deficit of $412 in fiscal 2004. The overall budget deficit is expected to shrink during the next decade and, by 2012, a surplus of $71 billion is projected. However, neither that figure nor the projected $368 billion deficit for 2005 factors in spending on the conflicts in Iraq and Afghanistan.

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18. Republicans, Democrats lay out Senate agendas
   Republicans and Democrats introduced health care reform bills in the Senate on Jan. 24 as each party established its agenda for the new Congress. In all, the parties introduced 10 bills each on a range of issues, perhaps most notably a Social Security overhaul to let individuals use part of their contributions for private retirement accounts. The major Republican health care bill, sponsored by Senate Health, Education, Labor and Pensions Committee Chairman Mike Enzi (R-Wyo.), included medical malpractice reform, support for health care information technology, expanded health savings accounts, tax credits for individual health insurance and a voluntary error-reporting system. A counter bill, by Sen. Ted Kennedy (D-Mass.), would allow reimportation of drugs from Canada, provide tax credits for small businesses purchasing health insurance and boost health care IT. A separate bill, by Sen. Mark Dayton (D-Minn.), would rewrite the Medicare Modernization Act to allow the federal government to negotiate with pharmaceutical companies, reduce seniors' out-of-pocket costs and ensure Medicare HMO payments don't exceed costs for equivalent care in the traditional Medicare program. 

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