State Health Care Budget Passes Legislature

After weeks of negotiations, Gov. Granholm and legislative leaders have passed the Fiscal Year 2005 budget. The deal includes a $15 million increase in the state's Healthy Michigan Fund, restored podiatric coverage for healthy adults on Medicaid, a Medicaid fraud auditing provision, creation of a new pool of funding for out-state hospitals, and the rejection of a proposed $119 million cut in optional Medicaid coverage for parents, caretaker relatives and persons between the ages of 18 and 21.

A critical element that paved the way for the compromise was the June cigarette tax increase that is expected to result in more than $300 million in new revenue and help fund Medicaid programs.

"We commend the governor and legislature for working together to craft a budget that addresses the immediate shortfalls in health care funding," said Spencer Johnson, president of the Michigan Health & Hospital Association. "Unfortunately, a multitude of serious challenges still remain for the health care community, including the $900 million Medicare parity gap, a growing number of uninsured patients and skyrocketing caseload demands. Health care providers and policymakers must continue to work together and remain diligent in our efforts to forge long-term solutions to our health care needs."

Candidates Asked to Become Legislative "Champions of Care"

The Michigan Health & Hospital Association has asked all candidates for the Michigan House of Representatives to sign a pledge supporting critical health care reforms, should they be elected.

The pledge lists as top priorities: increasing state funding for Medicaid, reforming the state's broken Medicaid system, protecting Michigan's teaching hospitals, opposing efforts to undo medical liability reforms, and supporting efforts to improve the health of Michigan's citizens.

"These are not Republican issues or Democratic issues -- these are issues that are critical to every single Michigan voter," said Spencer Johnson, president of the MHA. "Candidates who sign our pledge acknowledge the challenges the state faces and we look forward to working with them to provide access to affordable, high-quality care for every Michiganian."

Insurance Costs Hurting Job Growth

Employers cited the burden of increased health care costs as a significant factor in the decision not to hire additional workers. According to the New York Times, health insurance costs were named as the fastest growing cost to businesses, surpassing rising energy costs.

While the national economy has posted 11 straight quarters of growth, there are still almost a quarter of a million fewer jobs than in 2001. Data compiled through industry surveys and employer interviews indicate that health insurance now costs businesses approximately $3,000 per full-time worker and that the cost of health benefits is rising more than three times the rate of inflation or increases in salaries.

Much of the increase is the result the development of costly new drugs, advances in medical technology and reaction to restrictions within health plans.

"Health care is a major source of jobs to the economy, and as such, we realize that every effort should be made to ensure businesses are able to meet their staffing needs," said Spencer Johnson, president of the Michigan Health & Hospital Association. "We are committed to partnering with employers to provide high-quality, affordable care to all who need it."

Study Determines Costliest Conditions

A recent study by researchers at Emory University in Atlanta, Georgia, revealed that five particular medical conditions are responsible for 31 percent of the growth in health care spending between 1987 and 2000.

Heart disease, mental disorders, pulmonary disorders, cancer and trauma topped the list of the 15 medical conditions that accounted for more than half of the overall spending increase throughout this period.

"All health professionals, government officials and employers recognize the importance of reining in rising health care costs," said Spencer Johnson, president of the Michigan Health & Hospital Association. "Identifying which conditions contribute the most to spending increases will help us plan accordingly and take proactive steps to prevent skyrocketing expenses."

The study indicated that factors such as population growth, treatment prevalence and developments in medical technologies contributed to increased costs and that early prevention efforts could be effective in controlling health care budgets.

MHA Kicks Off Michigan Harvest Gathering

Spencer Johnson, president Michigan Health & Hospital Association

Michigan hospitals continue to reach beyond their walls to provide support to the state's food banks through the Michigan Harvest Gathering. In the six years that the MHA has proudly served as the primary sponsor of the event, the association and its members have donated more than $300,000 and 1.4 million pounds of food and other packaged goods to the annual campaign.

Philanthropy is the mission of MHA members -- all of which are nonprofit, community-based hospitals. All provide care to anyone and everyone who needs it, regardless of a person's ability to pay. Our members also support countless community-based programs and services through direct financial donations and with virtual legions of volunteers. In a state where so many have so much, no child, no family -- no Michigan citizen -- should go hungry.

In addition, at a time when our state and nation are facing soaring rates of obesity, no Michigan citizen should be without a well-balanced diet of healthy foods.

Our food banks work overtime to provide nutritional foods to their clients. But fruits and vegetables are among the most expensive products for food banks to buy. And by comparison, relatively small amounts of fresh fruits and vegetables are donated to the food banks. That is why donated funds -- as well as canned goods -- are critical to our success, so that food banks can purchase the fresh fruits and vegetables that are vital to a healthy diet.

We are working hard to ensure that no Michigan citizen goes hungry and now should be working even harder to ensure our diets are healthy and nutritional. If we succeed, Michigan can become one of the nation's healthiest states, decreasing health care costs, reducing rates of hunger and improving health status.