House Budget Lives Up to Dismal Expectations
Submitted by Evelyn Hawthorne, NCOTA Government Relations Consultant
House Health and Human Service appropriators June 4 voted to report, without prejudice, a proposed budget covering services delivered and managed by DHHS. The report “without prejudice” is a procedural vote to move the proposal to the next step, which is consideration by the House Appropriations Committee. The vote was a reflection of the unpleasant task of cutting 24 per cent out of
Co-chairpersons Representatives Bob England, M.D. (D-Rutherford) and Verla Insko (D-Orange) called cuts in the health and human services proposal drastic and severe. They acknowledged that with no new revenue from which to draw for the foreseeable future, they had no other option. Rep. Pearl Burris-Floyd (R-Gaston) said that she saw human beings behind each cut – the faces of patients and the professionals who serve them. Rep. Jeff Barnhart (R-Concord) expressed grave concerns about the consequences and Rep. Randy Stewart, (D-Nash), a physical therapist, challenged his colleagues to look at ways to acknowledge the cuts’ economic impact as well as the human impact as evidence proving the need for revenues to restore funding.
Provisions in the proposal of interest to NCOTA members include the following items:
- Elimination of PT/OT/ST – cuts outpatient services for adults and most children, but retains 20 per cent of funding for EPSDT service for children.
- 5.5 per cent cut across the board cut for all Medicaid providers in FY 09-10 and 6 per cent in FY 10-11.
- Imposes a single source for DME purchases, expected to generate $3.5 million in savings in FY 09-10 and $4.2 million in savings in FY 10-11.
- Orthotics and Prosthetics Coverage reduction – cuts $2.3 million in FY 09-10 and almost $3 million in FY 10-11 from orthotics and prosthetics coverage.
- New and increased licensure fees -- virtually no provider escapes a fee increase or, if they didn’t pay a fee, they will. New fees are proposed for Medicaid provider of $100 payable every three years and for initial licensure of a health care facility. An annual fee for hospice and increased fees for license renewals for health care facilities are proposed.
To read the complete proposal, please view http://www.ncleg.net/fiscalresearch/subcommittee_reports/House%20HHS%20Approps%20Subcommittee%20Complete%20Report%20and%20Provisions%202009_06_04a.pdf
NCOTA sent alerts to members during the week apprising of the therapy cut and asked OTs and OTAs to contact their members immediately. Please continue to call and write legislators about restoring funding for this critical service. In addition, please consider writing a letter to the editor of your local paper about the gravity of this cut and its impact on the patients you serve. Please contact your legislators immediately to ask them to do the right thing and find funds to restore therapy services.
To identify your legislators and to find their contact information, please visit
In the meantime, rumors persist regarding raising revenues, including service taxes, excise taxes and closing of tax loopholes, but have not yet been addressed publicly. They may not be revealed until the full House Appropriations Committee and/or the House Finance Committee meets next. Those meetings are anticipated to occur next week, but could be postponed, given the lack of support for the pieces of the budget that were revealed June 4.
House leaders aim to have its budget approved by June 18, but this budget has a long way to go! NCOTA-member contacts can make the difference in restoring an OT Medicaid benefit! NCOTA will continue to work to ask lawmakers to restore funding for rehabilitation therapy services – especially OT. Please help NCOTA to help you by calling or writing TODAY.
This update © 2009 Evelyn Hawthorne Government and Public Relations
