CARCIERI SIGNS HEALTH CARE REFORM PACKAGE

07-06-2006

Assembly Adopts Key Elements of Governor’s Health Care Reform Agenda

Governor Donald L. Carcieri today signed into law a package of health care legislation designed to implement major aspects of the health care reform agenda that he first unveiled in October 2005. Specifically, the Governor signed fourteen bills that, taken together, will significantly reform Rhode Island’s health care system by reducing health care costs and expand access to health insurance for small business employees, lower costs by promoting better personal health, and ensure a more balanced system of health care with a focus on primary and preventive care.

The Governor was joined by Health Insurance Commissioner Christopher Koller and by members of the General Assembly as he signed the legislation at a ceremony at Atlantic Paper and Twine in Pawtucket. Atlantic Paper and Twine – which the Governor visited in October to unveil his health care agenda – is one of the hundreds of small businesses that could be assisted in providing health insurance for their employees by the legislation that was signed today.

“Back in October, I launched my comprehensive health care reform agenda right here at Atlantic Paper and Twine,” Governor Carcieri said. “At that time, I said that my administration would work with the General Assembly to enact my vision for our state’s health care system. Nine months have passed and we’ve delivered. Today I am pleased to announce that we have made great strides in realizing my plan to improve Rhode Island’s health care system.”

Governor Carcieri’s health care agenda focuses on lowering health care costs for small business employees, reducing overall costs by promoting healthier living, ensuring greater access to primary and preventive care, lowering health care costs and improving quality through the use of information technology in health care, and improving the way the public sector purchases health care goods and services.

The health care legislation that the Governor signed today will directly advance three of the five goals of his health care agenda: affordable health care for small business employees, wellness, and access to primary and preventive care. Additionally, the state budget for the new fiscal year includes the Governor’s proposed $20 million revenue bond to fund the creation of a health information exchange network, thereby achieving progress this year on a fourth agenda objective.

Among other things, the bills signed today will help reduce the cost of health care and expand health care access for small business employees by lowering premiums by up to 25 percent; promote healthy living and reduce health care costs by reducing the availability of junk food in schools and by promoting tobacco cessation; ensure that Rhode Island has the right balance of health care providers – including primary care providers – by giving the state greater input into the expansion of health care facilities; and providing health care consumers with more information about the cost of the individual health care services they are purchasing.

Affordable Insurance for Small Business Employees

“We all know that small business has been hard hit by the dramatic increase in health insurance premiums,” Governor Carcieri said. “Everywhere I go across the state, small business owners -- like Lisa and David Spencer here at Atlantic Paper and Twine -- are concerned by the growing costs of providing health care to their employees.”

“Finally, patients should know what they are being charged for,” Governor Carcieri said. “Health care consumers need to have information about the cost and quality of the health care services they are getting.”

• New Affordable Health Insurance Product (S2848 & H6999) – This bill empowers the state Health Insurance Commissioner to work with the insurance providers to develop a new, more affordable insurance product for small businesses. The plan – which was first proposed by Governor Carcieri as the “Select Care” plan – is expected to reduce premium costs for participating small businesses by up to 25 percent.
• Assisting Low Income Small Business (S2107 & H6905) – Governor Carcieri proposed to create a reinsurance pool to help reduce health care premium costs for small businesses by an additional ten percent. While the General Assembly ultimately did not approve a funding mechanism this session, this bill establishes the reinsurance plan in state law and will provide the Governor and the General Assembly the opportunity to move forward on this important part of the Governor’s health care agenda.
• Making Health Care Costs and Quality More Transparent (S3170 & H8243) – High deductible health plans are on the rise. Patients need access to quality data and cost of services by facility to make informed choices. This bill expands health care quality reporting beyond hospitals and nursing homes to include health care providers and requires a report by the Office of the Health Insurance Commissioner to the legislature describing a path to patient access to cost data by March 15, 2007.
• Development of High Risk Insurance Pool (H7926 & S2264) – Would authorize the Health Insurance Commissioner to pursue federal funding to develop a high risk insurance pool for individual health insurance subscribers.

“First and foremost, we want to encourage healthy lifestyles,” Governor Carcieri said. “A healthier Rhode Island will help reduce health care costs across the board, while improving everyone’s quality of life. Enacting legislation that will restrict the sale of sweetened beverages to children in our schools and passing a bill that expands the coverage of smoking cessation programs will help pave the way for Rhode Islanders of all ages to lead healthy lives.”

• Healthy Snacks in Schools (H6968 & S2696) -- Moves Rhode Island closer to cutting in half the number of Rhode Islanders with unhealthy and unsafe habits by restricting the sale of sweetened beverages in schools while promoting healthy choices. The law mandates that only healthy beverages and healthy snacks may be sold in elementary, middle, and junior high schools. Healthy beverages and snacks are identified as low-fat milk, 100 percent fruit juice or juice-based drinks, vegetable drinks, low-fat yogurt, and nuts, seeds, reduce-fat cheese, and whole-wheat and whole-grain snacks.
• Tobacco Cessation (H7467 & S2706) -- The single biggest positive impact on Rhode Islanders’ health and health care costs has been policies that encourage smoking cessation. This bill expands coverage of smoking cessation programs and medications to the commercially insured, building on existing reforms.

“We must also have a balanced health care delivery system that encourages prevention and centers of clinical excellence,” Governor Carcieri said. “Primary care must be a focus to prevent and treat health care problems early. Early intervention saves lives and it saves health care dollars.”

• Certificate of Need Reform (H8055 & S2741) – Health care facilities must apply to the Rhode Island Department of Health (DOH) for a “Certificate of Need” in order to carry out capital expansions. This legislation will enable DOH to evaluate proposed expansions based on the state’s existing health care needs, such as primary and preventive care. Specifically, the new law requires health care facilities and providers to issue annual short- and long-term plans, including capital financing needs, to the Health Services Council prior to developing new services or equipment.

“Expanding the use of information technology in health care will help us lower costs and improve the quality of care we are providing,” Governor Carcieri said. “To that end, I have set a goal that the majority of Rhode Islanders should have health information available to them electronically by 2010.”

“Fortunately, Rhode Island is already leading the nation in electronic prescribing,” the Governor continued. “To enable us to build upon the momentum we’ve gained, I proposed – and the General Assembly approved as part of the state budget – a $20 million revenue bond to fund a Health Information Exchange to allow providers with Electronic Health Records to share their information safely and securely. The Health Information Exchange will make Rhode Island a national model in the use of information technology in our health care system.”