The House and Senate Health and Human Services (HHS) Omnibus Finance Bills, adopted in committees this week, are light years apart in how much and what they fund and cut. That includes funding for our rate increase, with the House providing a five percent one-time increase on July 1, 2016 ($90 million) and nothing in the Senate. The House funding would be like a “bonus,” rather than a base increase. Overall the House reduces projected HHS spending by $1 billion and the Senate increases projected spending for the next two years by $341 million.
That massive gulf – including funding for a rate increase – will be resolved in the next couple of weeks. While we wanted to be in a stronger position at this point, one capitol veteran noted that, in terms of legislative negotiations, “It’s still early.”
We know that there will be considerable angst among some legislators over the rate increase, including both Republicans and Democrats.
After consulting with our rate increase authors we will send new messages with a strong call to action next week. We will likely ask you to come to the capitol to personally send a powerful message. So please stay tuned for that alert and be ready to take immediate action with your legislators.
The Senate omnibus bill funds a number of services that the HHS committee was unable to fund last year as almost all of the available new money went to the five percent increase. The House bill finds money this year for a one-time increase by eliminating or reducing some large health care programs.
While we wanted to have a rate increase in both bills at this point, we do have $90 million on the table going into the global agreement negotiations with legislative leaders, Governor Dayton, and the House / Senate HHS conference committee. And we do have the same power we had last year: you.
DWRS
The Senate Finance and House Ways and Means Committees are expected to act on positive DWRS changes in hearings today and tomorrow. The changes, agreed to with DHS, include keeping money in the system (underspending by counties), extending banding, enhanced training and education with counties and improving the exceptions process.
One big issue - changes to budget neutrality provisions to assure money stays in the system after banding ends - is still under discussion with DHS.
Additional changes could come in the HHS conference committee in May.
Other issues:
New costs resulting from minimum wage increases was not funded by either the House or Senate. That measure was priced out at $17.9 million. Provisions regarding 245A and 245D and licensing sanctions await action by the full House and Senate after clearing several committees.
We continue to monitor and amend other provisions that affect services for people with disabilities and will provide a full summary when the legislature adjourns.
-- Bruce Nelson, CEO