In this issue:

State, Federal Health Care Cuts Harm Michigan Health Care Providers and Patients
Harvest Gathering Campaign Seeks Food and Funds for Michigan’s Poor
1.5 Million Michigan Citizens Consider Medicare Prescription Drug Benefit Options
Keystone to Announce Results of Two-Year Project to Reduce Medical Errors in Michigan ICUs
Health-E View: 2.6 Million Reasons Not to Cut Taxes

State Health Care Budget Cut by $90 Million; Congress Looks to Cut More

Following more than $540 million in Medicaid spending cuts between 1998 and 2005, the Michigan Legislature and Gov. Granholm agreed late last month to cut the state’s 2006 health care budget by another $90 million. By mid-October, Congress is expected to announce specifically how it will cut Medicaid and Medicare by $11 billion over the next five years — cuts that will do even more damage to health care providers and patients in Michigan and other states.

State Cuts Not As Bad As Recent Years
“Perhaps the only good news in the 2006 state budget is that the cuts to health care are not as bad as in recent years and not as bad as the governor and legislature had proposed at the start of the 2006 budget discussions,” said Michigan Health & Hospital Association President Spencer Johnson. “Yet, we all know that cuts of this magnitude — now more than $630 million since 1998 — are harming Michigan patients and providers, as well as the state’s economy.”

The budget cuts have continued, even though Michigan’s Medicaid caseload has skyrocketed to a record high of 1.5 million. Today, one in seven Michigan citizens relies on Medicaid for health care.

Federal Health Care Cuts Expected in Coming Weeks
Congressional leaders will make important Medicare and Medicaid budget decisions between now and mid-October. Massive funding cuts being considered by Congress would harm Michigan’s economy, employers and patients.

U.S. Senate and House committees are working to complete packages of spending cuts that are required by the fiscal year 2006 congressional budget resolution. The Senate Finance Committee’s deadline to submit its budget “reconciliation” package is Oct. 19, and House committees will submit their versions about the same time. Included is a requirement to cut $11 billion over the next five years, which is likely to come from Medicaid and Medicare.

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Harvest Gathering Campaign Seeks to Nourish Michigan’s Poor

Detroit Lions quarterback Joey Harrington has joined with Michigan food banks, hospitals, outdoor advertisers and other generous citizens to lead the 15th annual Michigan Harvest Gathering campaign. The Michigan Harvest Gathering raises food and funds to help feed the state’s hungry families.

“No Michigan child or family should go without food,” said Harrington, who has volunteered to serve as honorary chair for the 2005 campaign. “I’m looking forward to helping the Harvest Gathering campaign and Michigan’s food banks achieve their 2005 goal to collect 500,000 pounds of food and raise $350,000 by Thanksgiving.”

Since its inception in 1991, the Michigan Harvest Gathering has raised more than $4 million and collected 6 million pounds of food for hungry families throughout Michigan from corporations, local businesses, hospitals, farmers and individuals. The annual campaign has become a major source of food and funds for Michigan's regional food banks serving the state’s 83 counties. The Michigan Health & Hospital Association has served as primary sponsor of the Harvest Gathering since 1998.

For more information about the Michigan Harvest Gathering campaign, visit the Food Bank Council of Michigan at www.FeedMichigan.org or call Jane Marshall at (517) 485-1202.

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Michigan Citizens Consider Medicare Prescription Drug Benefit Options

Michigan hospitals are urging Medicare patients with questions about the new federal prescription drug benefit to contact the Michigan Medicare/Medicaid Assistance Program (MMAP).

MMAP has 700 trained counselors in 53 locations across Michigan available to answer questions and even schedule home visits to the state’s 1.5 million Medicare recipients. Enrollment for the new prescription drug benefit, approved by Congress and President Bush in 2003, begins Nov. 15 and ends May 15, 2006.

“With a couple of dozen private companies now trying to get senior citizens in Michigan to buy the prescription drug benefit from them, we know that many Medicare beneficiaries will be confused,” said Michigan Health & Hospital Association President Spencer Johnson. “Medicare patients can start signing up for a plan on Nov. 15, so Michigan hospitals want to be sure that they know where to go for accurate and objective information. MMAP is a trusted source with trained counselors who are not trying to sell any particular plan. They are just trying to help seniors get the facts about new benefit and determine what plan, if any, might be best for them.”

MMAP counselors can be reached at (800) 803-7174 or online at www.mymmap.org.

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Keystone to Announce Results of Two-Year Project to Reduce Medical Errors

The MHA Keystone Center for Patient Safety & Quality will host its first public conference to announce the results of a two-year effort to improve health care quality and patient safety in Michigan intensive care units (ICUs).

The conference, titled “From Rhetoric to Results,” is Oct. 13 at the Hyatt Regency Dearborn. Reporters are invited to attend a media briefing from noon to 1 p.m.

“Anyone who is concerned about health care quality and cost issues and patient safety in Michigan should attend this event,” said Keystone Executive Director Chris Goeschel, RN, MPA, MPS. “As far as we can tell, the Keystone: ICU program is the largest collaborative of its kind in the world dedicated to improving health care quality and patient safety, and the results of our project are nothing short of breathtaking.”

Those interested in attending the conference or in learning more about the MHA Keystone Center should contact the MHA’s Kevin Downey at (517) 323-3443 or at kdowney@mha.org.

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2.6 Million Reasons Not to Cut Taxes

Spencer Johnson, president Michigan Health & Hospital Association

After a long summer marked by little visible progress on repairing Michigan’s sputtering budget and economy, the legislature and governor late last month approved the fiscal year 2006 state budget.

Once again, massive cuts dominated the 2006 budget debate. More cuts to health care. More cuts to local units of government. Cuts to many human service programs. Cuts to higher education. And more cuts.

Another “cut” was also proposed by the legislature: $1 billion in additional tax cuts for Michigan businesses over the next five years. No one has said how we would pay for the tax cuts, so we can only presume that more revenue cuts to health care, local units of government, many human service programs, and higher education will be necessary.

Since 1992, former Gov. John M. Engler, the various legislatures that have been seated since then, and Gov. Jennifer Granholm have presided over dozens of tax cuts for businesses. These tax cuts, combined with Michigan’s loss of more than 200,000 high-paying jobs in recent years, have left the state budget running in the red each and every budget year for the past five years … with no relief in sight.

Despite the many tax cuts, Michigan now enjoys the dubious distinction of having the nation’s highest or second-highest unemployment rate (we change places almost monthly with Mississippi). Michigan is also one of the nation’s least healthy states, with rates of obesity, tobacco use, diabetes and heart disease running substantially higher than in most states.

These tax cuts and lost jobs prompted the state to cut funding for health care programs by more than $540 million in fiscal years 1998 through 2005. Now comes the 2006 budget, with another $90 million in health care spending cuts.

Meantime, Michigan’s Medicaid caseload has exploded to a record high of 1.5 million, and today nearly 1.1 million Michigan citizens have no health care coverage at all. That makes 2.6 million good reasons not to cut taxes by $1 billion.

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