WORK SESSION HB 2182  

 

TAPE 227, 228, A

 

HOUSE REVENUE COMMITTEE

JULY 28, 2003   8:30 AM   STATE CAPITOL BUILDING

 

Members Present:                        Representative Lane Shetterly, Chair

                                                Representative Wayne Scott, Vice Chair

                                                Representative Joanne Verger, Vice Chair

                                                Representative Phil Barnhart

                                                Representative Vicki Berger

                                                Representative Pat Farr

                                                Representative Mark Hass

                                                Representative Elaine Hopson

 

 

Witnesses Present:                        Jim Carlson, Oregon Health Care Association

                                                Ruth Gulyas, Oregon Alliance of Senior and Health Services

                                                Brett Salmon, Oregon Healthcare Association

                                                Cathy Cooper, Seniors and People with Disabilities

                                                Julia Huddleston, Department of Human Services, (DHS)

                                                Laurie Wimmer-Whelan, Oregon Education Association

                                                Lyn Lundquist, Oregon Business Association, (OBA)

                                                Mike Grainey, Oregon Department of Energy

 

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                LizBeth Martin-Mahar, Legislative Revenue Office

                                                Richard Yates, Legislative Revenue Office

                                                Mazen Malik, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

 

TAPE 227, SIDE A

 

004

Chair Shetterly

Calls meeting to order at 8:35 a.m.

 

OPENED WORK SESSION ON HB 2182

 

010

Chair Shetterly

Discussed -6 amendments, (Exhibit 1).

 

019

Jim Carlson

Provided overview of major components of -6 amendments HB 2182, (Exhibit 2); and an analysis of states currently using the funding mechanism to fund nursing facility care, “State Medicaid Voluntary Contribution Programs”, (Exhibit 3).

 

051

Carlson

Discussed Section 13 (5), (Exhibit 2).

 

080

Carlson

Discussed Section 19 and sunset provisions, (Exhibit 2).

 

093

Carlson

Discussed Section 31, (Exhibit 2).

 

109

Carlson

Discussed Sections 21-30, (Exhibit 2).

 

116

Ruth Gulyas

Underscored the points of agreement on the reimbursement methodology in statute. The provider tax will go along way in helping nursing homes offset the disparity between the Medicaid reimbursement rate and the actual cost to provide quality care.  Paraphrased written testimony (Exhibit 4). Supports the nursing facility assessment tax and concurred with points made by Carlson.

 

150

Chair Shetterly

Including the statutory reimbursement methodology in Section 13(5)?

 

151

Gulyas

Answered affirmatively.

 

157

Brett Salmon

Described the revenue impacts to the general fund and the dedicated funds in the Nursing Facility Quality Assurance Fund.

 

187

Cathy Cooper

For the record, provided comments on the -6 amendments. DHS is undergoing legal review of -6 amendments. Working with the Alliance and OCHA to achieve resolution on one area where the DHS has strong concerns regarding re-basing as identified in Section 13 (5).  Said re-basing is part of Administrative Rules and no other area within DHS has a statutorily guaranteed reimbursement methodology.

 

213

Chair Shetterly

How do you respond to Carlson’s corollary statement that there is no other provider that has come forward and asked to be assessed?

 

222

Julia Huddleston

At this point the executive branch does have strong concerns.

 

226

Chair Shetterly

Asked if Cooper or Huddleston knew the legal issues and timing.

 

230

Huddleston

Legal review involves Department of Justice, (DOJ), and a Washington, D.C.-based law firm who work with Centers for Medicare and Medicaid Services on provider reimbursement issues. Asked DOJ to resolve largest outstanding questions regarding the bill, such as waiver mechanisms and that the law firm is comfortable with the language of the statute.

 

252

 

Discussion regarding acronyms, CMS (Center for Medicare and Medicaid Services), and CFR (Code of Federal Regulations).

 

265

Carlson

Regarding the legal review, felt technical issues would be addressed quickly.  The payment methodology portion, is a policy question for the Legislature, discussed desire for guarantee in contract.

 

302

Rep. Berger

Regarding state programs, how many are statutory and how many are by rule?

 

307

Carlson

As relates to setting up the funding mechanism, all are statutory, some have payment methodology included in the statute; discussed CMS preferences for inclusion in the statute. Oregon described as historically not a trustworthy partner to do business with.

 

360

Laurie Wimmer-

Whelan

OEA has recommended several of the items found in the -3 amendments, but is less enthusiastic about across the board cuts than targeted cuts or phased out exemptions.  OEA believes it is possible to raise another $750 million in revenue.  Suggested review of mortgage interest deductions for higher income; property tax deductions for non-primary residents for phase out; property tax exemptions for commercial buildings and pleasure boats.  Department of Revenue (DOR) estimates legislation to limit corporate sheltering activity could result in $162 million for the 2003-05 biennium.

 

429

Lyn Lundquist

Discussed areas of consideration regarding economic impacts. Opposed freezing the standard deduction and personal exemption; supported the corporate minimum and a reduction in corporate credits.  OBA believes in an across the board reduction in itemized deductions rather than decreasing individual deductions.

 

 

TAPE 228, SIDE A

 

038

Rep. Hass

Instead of reducing the personal exemption by $15 and freezing it, OBA prefers a phase out at the higher end?

 

043

Lundquist

Answered affirmatively.

 

050

Chair Shetterly

You described the personal exemption as surprisingly progressive, is that correct?

 

054

Paul Warner

Itemized deductions are distributed more toward higher income; personal exemption credits are tilted toward higher income.

 

065

Rep. Barnhart

Asked Lundquist to elaborate regarding OBA support of the proposal concerning a reduction in corporate excise tax credits.

 

070

Lundquist

This was included in an earlier package OBA put together. Explained the business community needs to pay its fair share and reduce the credits.

 

080

Mike Grainey

Addressed the two energy tax credits in Sections 19-22, cited a deferral in the bill for 2003-05 and the opportunity to recapturing those tax credits, as a reasonable approach which would allow support of the programs.

 

 

 

 

103

Chair Shetterly

Meeting adjourned at 9:15 a.m.

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant

 

Exhibit Summary:

1.       Chair Shetterly, “HB 2182-6”, 13 pages

2.       Carlson, “Major Components of -6 Amendment HB 2182”, 4 pages

3.       Carlson, “State Medicaid Voluntary Contribution Programs”, 3 pages

4.       Gulyas, “Testimony on HB 2182”, 2 pages

5.       United for Quality Care, “Written Testimony”, 1 page