The problem arises because Ohio, along with other states, traditionally contained the cost of prescription drugs provided through Medicaid by placing products on preferred drug lists in exchange for rebates from their pharmaceutical companies. Under the new accounting formula, the base year used in determining state and federal costs of drugs for dually-eligible populations predates those rebates and doesn’t account for Ohio’s recent savings. Ohio could be overcharged as a result.

The additional strain on the state’s budget could push Gov. Bob Taft to revisit proposals to cut funding for the Medicaid program, potentially putting that vulnerable population at risk for reduced eligibility or coverage. The governor will make his budget proposal in January.

To help bolster the state’s budget in the next biennium, the Ohio Partnership for Prevention, a group of Ohio health care-related organizations, last month introduced a plan to increase the tobacco tax for an additional $525 million in annual revenue to expand Medicaid coverage and promote tobacco prevention and cessation. OHA is a partner in the initiative and will keep members apprised on the effort’s progress. (Bridget Gargan, bridgetg@ohanet.org)

Designed to eventually replace the traditional paper applications, the online service allow physicians to renew their licenses 24 hours a day, seven days a week using a Visa, MasterCard or Discover Card. They receive verification of renewed status via the Web site within two to three business days. Physicians unable to renew online must contact the medical board’s CME & Renewal Department in writing to request alternative application forms and instructions. They should allow two weeks for receipt of these materials.

Hospitals are also reminded to check the "Medical Board Alerts" section of the medical board's Web site, www.med.ohio.gov/, each month for notice of license suspensions. (Jean Scholz, jeans@ohanet.org)

During the final weeks of legislative session, OHA will push for Senate action on House Bill 331, sponsored by Rep. Jean Schmidt (R -Loveland), which would raise the statutory cap on mammography reimbursement from $85 to 130 percent of the Medicare reimbursement rate, or approximately $106. OHA is also working for a Senate vote on legislation regarding simplifying the process, and reducing the costs, of issuing revenue bonds. House Bill 239, sponsored by Rep. Anthony Core (R -Rushsylvania), contains provisions that would assist hospitals and related health care entities in complying with complicated federal income tax regulation governing the issuance of tax-exempt debt.

In addition, OHA is working with representatives from the insurance industry, trial attorneys and medical records copying companies to extend, and allow for inflationary increases to, a statutory fee structure for the amount hospitals could charge for copying medical records. OHA is also working with business, insurance and employer groups on House Bill 541, sponsored by Rep. Jim Raussen (R -Cincinnati), which would require hospitals to submit pricing, service quality, error prevention and billing practice information to be posted on a state-operated Web site. For additional information on these and other bills that will receive attention during the fall legislative session, go to www.ohanet.org/advocacy/state/network/report/2004/102904.pdf. (Bridget Gargan, bridgetg@ohanet.org; Jeff Klingler, jeffk@ohanet.org).

Hospitals with vaccine to share, or needing additional vaccine, should communicate with their local health departments. Local health departments throughout the state will be in contact with ODH and other area organizations to facilitate redistribution of the vaccine. Hospitals can also check with their metropolitan hospital association on regional efforts to share vaccine. Ohio’s children’s hospitals and providers seeking vaccine for high-risk kids should be advised Ohio will receive its entire order of Vaccine for Children within the next several weeks. (Carol Jacobson, carolj@ohanet.org)