Delaware Health Fund Advisory Committee

DELAWARE HEALTH FUND ADVISORY COMMITTEE

Public Meeting

Health Fund Advisory Committee

September 29, 2016, 1 pm to 3 pm

MINUTES

Present:Secretary Rita Landgraf Absent:Dr. Charles Reinhardt

Representative Ed OsienskiSenator Bethany Hall-Long

Don Fulton

Paula Roy

Representative Debra Heffernan

Senator David McBride

Senator Patti Blevins

Laura Howard

Welcome and Introductions
Meeting was called to order at 1:05 pm.
Secretary Landgraf welcomed everyone and introduced Laura Howard as a new member on the Committee.

Don Fulton moved to accept the minutes and Representative Osienski seconded the motion. Laura Howard abstained.

The DOJ budget request update and the Master Settlement Agreement (MSA) payment is calculated from a series of adjustments from different sources. Out of the national payment, Delaware received .4% last year, which amounts to 27.0 million. We have been in compliance over the last 8 years. The Litigation is based on companies not in the agreement to take over the market share. Each year, 3 to 4 million is held in a dispute account. You can only request one year at a time.

There are only 20 States that have not settled. We have a pretty strong case and the expenses are high. A one-day panel hearing cost $30,000. Funding request is based on straight up expenses.

A discussion started with Don Fulton asking, what is the likelihood of a settlement?Three States that lost are with us and companies are taking notice, one company, R.J. Reynolds, likes to litigate. Next year we will have a 2 million dollar- reduction. For this year, we are expecting 26.5 million.

Representative Osienski asked about the Joint Finance Committee (JFC) using the Health Fund monies for other things. The monies should be used for healthrelated programs.Representative Heffernan, a member of the JFC, said it is going to be a tough year and last year they were all health related and we did not have General Funds to cover these programs. Tom Brown did say that MSA does not tell us how to use the money.

Bert Scogliettigave an update on the budget and talked about how in the final hours of June 30th there was 7 million dollars less than what was predicted by the Delaware Economic and Financial Advisory Council (DEFAC).The FY 17 Budget report is not good either. The DEFAC met the 3rd Monday in September and there is a 50 million dollar deficient. Next year’s budget, FY18, is showing a 167.4 million dollar shortfall. OMB is working with agencies to shape their budgets, which is due the middle of October. The Public Hearings are in November. The next DEFACmeeting is scheduled for the 3rd Monday in December.

Secretary Landgraf said that our Department is trying to do a 2% reduction and it has been very difficult.

Secretary Landgraf explained the process and explained that we were an advisory committee. At this point, a discussion was started as to the role of this Committee.Don Fulton spoke about the sensitivity of the State budget and we need to stay true to what we feel is the best interest of our citizens. He is still going to bring up the Innovation Fund every year.

A discussion started with Senator McBride speaking about how very disappointed he is about the use of the monies by the JFC. In 2001, SB8 was passed and it addressed the use of the Tobacco Settlement Monies and how it is to be used for fighting tobacco use. JFC utilizes the monies to balance the budget. He would like the Committee to refocus on the original purpose of the Health Fund Monies and how it was originally intended to be used. He would also like someone to go before the JFC to defend the recommendations of the Committee.

Senator Blevins shared the same frustration as Senator McBride. The JFC uses the Health Fund Monies to supplant an existing program and SB8 does not allow this.

Paula Roy suggested that the Committee might want to look at SB8. Rita Landgraf agreed that we need to look at our roles as defined in SB8.

Representative Heffernanstated that she tries to make sure that the JFC takes the Committee’srecommendations seriously. JFC also goes on recommendations from the Governor’s Office. Recommendations are prioritize.

Secretary Landgraf explained what was in the packetsprovided at this meeting. She reviewed the fiscal handout with the Committee. Tom Brown did say that they could increase the tobacco money from 25 million to 26.5 million. There still is a shortfall if we go with the increases in the applications.

Representative Heffernan did say that funding forthe Non-Public School Nurses was not in the Governor’s Budget, but the JFC thinks this is very important and the JFC put it in. They also put in School Based Health Centers.

The Committee decided they would likerepresentatives fromthe following programs that requested a big increase, and the new programs, to come and talk about their programs. Theseprograms are: Paramedic Instructional Program Expansion – DPH;Autism Supports– University of Delaware; Tobacco Prevention – DPH;and,New Nurse Formation Programs-Del Tech.

Don Fulton started a discussion on the Tobacco Companies and how they are master marketers. They are coming out with new products like e-cigarettes and many of these products on focusing on youth. Secretary Landgraf said that another population that is affected by this is the college population that never smoked before.

It was decided that Tom Brown would come back to the next meeting to talk about what is covered in the Tobacco Settlement. Tom Brown did speak a little bit about our E-Cigarette legislation and how good it is. He said that e-cigarettes would not be coming under the MSA; this settlement is just for cigarettes. Even cigars are not included.

Representative Heffernan thanked Senator Blevins for taking the lead with her on the e-cigarettes legislation. There were two bills passed: not selling to youth and including e-cigarettes in the Clean Air Act.

VI. Next Public Meeting:

VII. The meeting adjourned at 2:50 pm.

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