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Minnesota Governor Implores States To Create Health Insurance Compact

On October 21, a letter from Governor Tim Pawlenty (R) to the Nation’s governors asked for participation in the creation of the Interstate Health Insurance Compact (IHIC), an entity modeled after the Interstate Insurance Product Compact (IIPRC). Governor Pawlenty envisions that the IHIC will enable residents to purchase health insurance across state lines while adhering to common regulatory standards. While critics of the IIPRC fear the eroding of consumer protection for the sale of life insurance products, Governor Pawlenty argues that the IHIC will increase competition, provide more choices, lower prices, and set stronger standards for consumer protection.

New York Juvenile Correctional Facilities Lack Ample Mental Health Services

A new report from the Center for New York City Affairs finds that state juvenile correctional facilities lack mental health services for their custodial population, as there are no psychiatrists or psychiatric nurses employed by the state facilities. Although about half of the minors in custody have a diagnosed mental illness, the state relies on visiting clinicians from hospitals to prescribe medication and monitor treatments during short weekly visits. The report also found that state employees lacking clinical experience or training resort to violent and aggressive tactics in disciplining the children. The New York Department of Justice found widespread abuse during recent investigations of the facilities.

California Federal Judge Blocks $82 Million in State Health Care Cuts

On October 19, a U.S. District Court judge issued a preliminary injunction blocking $82.1 million of cuts to in-home support services for elderly and disabled California residents. The cuts, which were set to take effect November 1, were one of many components of the state’s budget compromise. The judge ruled that the state’s system for determining service reductions was unfair. Governor Arnold Schwarzenegger (R) has criticized the decision as well as others like it, as a major obstacle to the state budget process.

Iowa Governor Releases Details of Budget Cuts; Health Funding Affected

After Governor Chet Culver’s (D) October 8th announcement that he was ordering a 10-percent across-the-board cut to state agency budgets to reduce state spending by roughly $600 million, the Iowa Department of Human Services (DHS) proposed a plan to achieve its $145 million cut. If approved by the governor, DHS would lay off 79 employees and change numerous services. Among other changes, the plan reduces most Medicaid provider reimbursements by 5 percent and delays efforts to streamline children’s enrollment into Medicaid as well as the Children’s Health Insurance Program’s subsidized dental program. Both delays would require legislative approval.

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