Last week, the Human Services Subcommittee of the House Finance & Appropriations Committee heard a great deal of testimony regarding Governor Taft's proposed $19 billion Medicaid budget for fiscal years 2006-2007. The measure (HB 66) includes a series of proposals to slow the growth in spending by $813 million in state and federal funds during the first year of the program, and $1.4 billion in the second year. The budget would, among other things, cut dental and vision services for about 800,000 adults through Medicaid, and reduce reimbursements for hospitals, nursing homes and other providers.
Testimony was heard against the requirement that hospitals would have to do business with HMOs even if the institution has determined that the HMO poses an unacceptable financial risk and/or a threat to patient care. In addition, opposition was expressed regarding the fact that the budget, as proposed, would tie Graduate Medical Education payments to a hospital's decision to contract with an HMO. Representatives from hospitals in Cleveland testified that there is concern about the proposed eligibility cuts to the working poor from the current 100% to 90% of the poverty level. Information was provided as to how this would impact the hospital. Chairman James Hoops (R-Napoleon) sought recommendations of replacement funding if the proposed cuts were restored. The Ohio Partnership made a recommendation for Prevention that there be a 75-cent per pack increase in the cigarette tax and an equivalent increase on other tobacco products. The tax would yield an estimated $525 million that the coalition said could be used to continue vision, dental and other services under Medicaid, and repay money legislators have diverted in recent years from tobacco cessation and prevention programs. Mr. Taft has proposed a 45-cent per pack increase in the cigarette tax