State Coverage Initiatives
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In this Issue:

1. Welcome from State Coverage Initiatives (SCI) Director
2. Save the Date: SCI Summer Meeting, June 28-29
3. New Profile in Coverage: Pennsylvania's Health Insurance Premium
Payment (HIPP) Program

4. West Virginia Passes Legislation to Help Small Businesses
Cover Their Employees
5. SCI Funds Implementation of Maine's Dirigo Reform
6. SCI to Co-Host Meeting on Medicare Prescription Drug Benefit
7. AcademyHealth Launches Online Interest Group for State Health Policymakers
8. HCFO Research Sheds Light on Employers' Decisions to Self-Insure
9. Reports of Interest


1. Welcome from SCI Director, Alice Burton

The State Coverage Initiatives (SCI) program is pleased to announce the first issue of its new St@teside e-newsletter, the first of many activities and projects from SCI in the coming months. As many of you know, I recently joined the SCI program as its new director. After many years in Maryland state government, I am happy to be in Washington, D.C., at AcademyHealth, learning about and sharing the many unique experiences of states.

We hope that St@teside will serve as a way to update and inform you of SCI's products and services in a format that is easy to navigate and circulate among your colleagues. In addition, this electronic newsletter will come to you at the beginning of each month, more regularly than the previous print newsletter. Your colleagues may also sign up to receive St@teside by e-mailing sci@academyhealth.org.

SCI has a lot planned in the coming months, and we will use St@teside to keep you posted. Our goal is to be responsive to your needs as a state policymaker. Please contact us at sci@academyhealth.org or call me at 202.292.6700 if there are issues of particular interest to you or ways that SCI can be helpful.

I look forward to working with you all in the future.


Alice Burton
SCI Director


2. Save the Date: SCI Summer Meeting

The State Coverage Initiatives program is pleased to announce the date and location for its summer workshop for state officials:

June 28-29, 2004
W Lakeshore Hotel in Chicago

The SCI team is in the process of developing an agenda for this meeting. Likely topics we will address include:

  • Models for building on employer-sponsored coverage;
  • Public program cuts and changes;
  • Primary care benefit packages and their role in the public and private markets;
  • Purchasing strategies;
  • An update on Health Care Tax Credits and Health Savings Accounts; and
  • Developments regarding medical malpractice in the states.

Please send ideas on topics you would like to see included on the agenda to sci@academyhealth.org.

Slides from recent SCI meetings for state officials are available on the SCI Web site. Our most recent meeting, which took place in January, addressed a variety of relevant topics, including Healthy New York, Maine's Dirigo Health Plan, implications of Medicare reform on states, pharmacy cost-containment strategies, and community initiatives.


3. New Profile in Coverage: Pennsylvania's Health Insurance Premium Payment (HIPP) Program

Pennsylvania's HIPP program has emerged as an efficient and financially successful employer buy-in program since its implementation in 1994. Joanne Slesser, the program's former director, was closely involved with its design and implementation. SCI talks with Slesser about how Pennsylvania's HIPP program works, its successes and challenges, and the lessons she learned along the way.

View the Profile in Coverage. For more information on Pennsylvania's HIPP program, please also see the State Coverage Matrix.


4. West Virginia Passes Legislation to Help Small Businesses Cover Their Employees

In mid-March, West Virginia, an SCI demonstration grantee, passed key legislation intended to help uninsured small businesses provide coverage for their employees. The new law creates a private/public partnership between the West Virginia Public Employees Insurance Agency (PEIA) and insurance companies that choose to offer the plan. West Virginia's plan will allow carriers to access PEIA's reimbursement rates and drug purchasing plan, enabling the new small business coverage cost to be 20-25 percent below the usual market rate. This will expand the pool of insured working West Virginians.


5. SCI Funds Implementation of Maine's Dirigo Reform

In order to facilitate the implementation of the much-heralded Dirigo Health Plan, the State Coverage Initiatives program awarded the state of Maine a one-year grant for $275,000. Specifically, the SCI grant will fund the design and pricing of the plan's benefit package and subsidy levels, an analysis of current health care spending in Maine, the creation and pricing of the "savings offset payment," the assessments of the insurers and third party administrators that will partially fund the expansion, and additional information dissemination efforts. The National Academy for State Health Policy is acting as a fiduciary agent for the grant.

Dirigo Health Plan, signed into law in June 2003 by Governor John Baldacci (D), will begin accepting enrollees on July 1, 2004. In Latin, Dirigo translates to "I Lead," which is also the state's motto. The plan is a system-wide health reform law designed to expand access to coverage to all Mainers by 2009, to bring down the cost growth of health care in the state, and to continually improve the quality of care provided to its citizens.

More information on the Dirigo Health Plan can be found on Governor Baldacci's Web site.


6. Everything You Wanted to Know about Medicare's Prescription Drug Benefit, But Were Afraid to Ask

We hear you! During SCI's January 2004 meeting, Health Care Reforms: Re-examining State Strategies, many of you had questions about the Medicare Modernization Act's implications for states. The State Coverage Initiatives team is working with the Rutgers Center for State Health Policy (CSHP) and the Center for Health Care Strategies (CHCS) to address states' needs for information and technical assistance.

States' pharmacy assistance program staff and Medicaid personnel will be invited to participate in a teleconference this spring to identify technical assistance needs for states in coordinating the new Medicare drug benefit with existing state pharmacy and Medicaid programs. Focusing on topics identified, SCI and CSHP will also host a meeting in the fall of 2004 bringing together state officials, funders, and national experts. The meeting will be sponsored by the federal Agency for Healthcare Research and Quality and The Robert Wood Johnson Foundation (through SCI and CHCS). For more information, contact Alice Burton at 202.292.6700 or alice.burton@academyhealth.org.


7. AcademyHealth Launches Online Interest Group for State Health Policymakers

AcademyHealth has created a series of Interest Groups to provide a forum for researchers and policymakers to share information, network with their peers, and learn more about topics related to health services research and health policy. The State Health Policy and Research Interest Group gives state health leaders an opportunity to interact and discuss state-level research, investigations related to state health policy, and relevant health services research. Topics recently discussed in this forum include administrative cost savings and health information technology for rural hospitals.

The State Health Policy and Research Interest Group is one of the 10 Interest Groups currently offered through AcademyHealth. Through the groups' Web-based discussion forums, individuals can connect with and learn from their colleagues across the country. Interest Groups also meet annually at AcademyHealth meetings and conferences, such as the upcoming Annual Research Meeting being held June 6-8, 2004, in San Diego.

For more information or to join this Interest Group, visit the Interest Group Web site.


8. HCFO Research Sheds Light on Employers' Decisions to Self-Insure

The Robert Wood Johnson Foundation's Changes in Health Care Financing and Organization (HCFO) program recently published a findings brief indicating that state variation in insurance laws is a major driver of employers' self-insurance decisions. The brief highlights HCFO-sponsored research conducted by Gail Jensen, Ph.D., at Wayne State University.

Jensen found that employers choosing to self-insure did so largely out of convenience. By self-insuring, employers can avoid conflicts in insurance laws across states and prevent the hassle of outsourcing insurance for some plans but not others. Some researchers and policy analysts have speculated that employers tend to self-insure their firms in order to circumvent compliance with evolving state mandates on coverage, which may require them to provide generous benefit packages.

"It is the disparity in insurance mandates across states, not the level of mandates, that has been burdensome to employers and key to their self-insurance decisions," says Jensen.

The research also found that firms that have used a strategy of self-insuring their conventional plans were much more likely to self-insure their managed care options as well.


9. New SCI Publications and Other Reports of Interest

The following are the most recent additions to SCI's database of state reports. A complete listing of available reports, visit the State Reports Database.

State of the States 2004: Cultivating Hope in Rough Terrain
January 2004

Employers and Individuals Are Vulnerable to Unauthorized or Bogus Entities Selling Coverage
The General Accounting Office
February 2004

Medicaid and MinnesotaCare Satisfaction Survey Results
Minnesota Department of Human Services
February 2004

The Costs of Not Having Health Insurance in the State of Maryland
Maryland Department of Health and Mental Hygiene
December 2003

Families at Risk: The Impact of Premiums on Children and Families in Husky A
Connecticut Health Foundation
November 2003

A Picture of Uncompensated Care in California
The Petris Center on Healthcare Markets and Consumer Welfare, UCLA
October 2003

Private Health Insurance: Federal and State Requirements Affecting Coverage Offered by Small Businesses
The General Accounting Office
September 2003

To view more reports like these, visit the State Report Database.

Send your state's reports to sci@academyhealth.org.

AcademyHealth AcademyHealth is the national program office for SCI, an initiative ofThe Robert Wood Johnson Foundation
1801 K St, NW Suite 701-L, Washington, DC 20006sci@academyhealth.org