Nebraska Senators hear testimony regarding Health Care Cash Fund

11/29/2011

2 Comments

 
The Appropriations Committee and the Health and Human Services Committee of the Legislature spent Tuesday morning hearing testimony about the Health Care Cash Fund.

Senators are evaluating the sustainability of fund and programs that are funded with money from the fund. The fund receives funds from the Nebraska Tobacco Settlement Trust Fund and the Nebraska Intergovernmental Transfer Trust Fund.

The purpose of today's hearing was to address:

  1. The outcome and priority of funding in fulfilling the purpose of the Nebraska Health Care Funding Act stated in section 71-7606, which is to provide for the use of dedicated revenue for health-care-related expenditures, including compliance with the requirement that any funds appropriated or distributed under the act shall not be considered ongoing entitlements or obligations on the part of the State of Nebraska and shall not be used to replace existing funding for existing programs;
  2. Statutory language identifying the tobacco settlement fund and intergovernmental transfer fund as trust funds notwithstanding that neither is a trust fund. Trust funds are assets held in trust, the use of which is governed by the conditions of the trust. Neither the tobacco settlement fund nor the intergovernmental transfer fund is governed by the conditions of a trust, and the use of both funds is strictly the prerogative of the Legislature; and
  3. Whether sustainability should be the policy governing allocations from the Nebraska Health Care Cash Fund. The latest report by the Nebraska Investment Council filed on September 22, 2010, indicates, based on current appropriations, that outflows will exceed inflows in every year in the next decade. Some projections estimate the fund will be depleted by 2037 or 2038. Hewitt, Ennis, Knupp, a consultant contracted by the Nebraska Investment Council, reported in March 2011 that if the current level of annual commitments is not reduced, "spending levels of high and very high will likely result in declining portfolio, under the current aggressive asset allocation. If spending can be kept low, portfolio will likely grow."

LB 692 passed in the 2001 Legislative Session provided the current policy framework for the use of the Nebraska Health Care Cash Fund and established the tobacco settlement and intergovernmental transfer funds as the two sources of revenue for the ·fund. The intent of LB 692 was to use the funds for health-related purposes.

Section 71-7606 states the purpose of the Nebraska Health Care Cash Fund:

  1. The purpose of the Nebraska Health Care Funding Act is to provide for the use of dedicated revenue for health-care-related expenditures.

  3. Any funds appropriated or distributed under the act shall not be considered ongoing entitlements or obligations on the part of the State of Nebraska and shall not be used to replace existing funding for existing programs.

  5. No funds appropriated or distributed under the act shall be used for abortion, abortion counseling, referral for abortion, or research or activity of any kind involving the use of human fetal tissue obtained in connection with the performance of an induced abortion or involving the use of human embryonic stem cells or for the purpose of obtaining other funding for such use.

  7. The Department of Health and Human Services shall report annually to the Legislature and the Governor regarding the use of funds appropriated under the act and the outcomes achieved from such use. 

The fund supports a number of programs, including medicaid smoking cessation and tobacco prevention and control.



 


Comments

Rhonda Theiler link
02/14/2012 09:40

If the tobacco settlement dollars are specifically dedicated for health related tobacco cessation and heatlh care related expenditures, then my question is, "Why doesn't Sandhills Dist. Health Dept. & Clinic receive this tobacco education funding to use within our health department to support tobacco education programs?"
Thank you,
Rhonda Theiler

Reply
Cindy at Health Education Inc. link
02/16/2012 17:04

Rhonda,

Thanks for your post.

To adequately address the problems associated with smoking and tobacco use, the CDC recommends, and Health Education Inc. supports, comprehensive efforts and funding for that work.

The US Centers for Disease Control and Prevention recommends that Nebraska spend $21.5 million a year to reduce tobacco use. Currently Nebraska spends $2.4 million — 11 percent of that amount — to address the problem. That's down from $2.9 million spent last year, and from $7 million when the state first funded the program.

By contrast, the tobacco industry spends $66.5 million marketing in Nebraska, and Nebraska receives a combined $107 million from tobacco tax and settlement revenue. Annual health care costs in Nebraska directly caused by smoking total $537 million, and the portion of those expenses covered by the state Medicaid program is $134 million.

Each year, 2,200 Nebraska adults die from their own smoking. That's more than six Nebraskans lost each day. And, unless we make changes, we can expect to see a whopping 36,000 now kids under 18 ultimately die prematurely from smoking.

Tobacco takes a tremendous toll on Nebraskans, both on the health and well-being of our people, and on our economy.

The money that Nebraska spends is prioritized to make best use of that money.There are several components of the program that fund interventions to every county in the state including the Nebraska Tobacco Quitline that provides tobacco cessation counseling services free of charge. There is also a statewide media campaign and the state youth empowerment movement No Limits.

The simple fact is that the funding Nebraska receives for reducing tobacco use, while important, doesn't meet the magnitude of the problem. The need and opportunity for reducing tobacco use outdistances our ability to respond to that need. And that includes the ability to have a broader and deeper reach with community-based programs.

I encourage you and others interested in reducing tobacco use to sign up for Health Education Inc.'s email updates (see the button at the top right-hand side of this page.) It's important to maintain and strengthen our efforts to reduce the toll tobacco takes on Nebraskans. And that depends on people like you continuing to make your voice heard.

Thanks again for your post, and for your commitment to reducing tobacco use in Nebraska.

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