Join the Discussion
How does the ACA mandate work?
The Affordable Care Act (ACA) requires almost everyone in the United States to have health insurance. Many people who have not begun to apply by March 31, 2014, will face a tax penalty, starting with 2014 income taxes they’ll pay in 2015. But some people will be exempt from the penalty, including people in poverty who do not qualify for Medicaid because their state has not expanded Medicaid eligibility.
This one-page overview looks at how the mandate works, who will owe the penalty, and who may be exempt from it. Check it out, then visit www.healthcare.gov or call 800-318-2596 to learn more about your coverage options and requirements under the ACA.
2014 legislative update: Questions about corrections, teacher insurance funding remain as Alabama Legislature takes break
Alabama’s General Fund (GF) and Education Trust Fund (ETF) budgets both made progress toward becoming law Thursday, but the Legislature went home before sending either budget to Gov. Robert Bentley. Lawmakers will have just three more meeting days to finalize both budgets when they return from spring break April 1. Both budgets would fall short of their pre-recession funding levels.
The Senate voted 30-2 Thursday for a $1.8 billion GF budget almost identical to the one that a Senate committee approved Wednesday. The House adjourned for the day before the vote, so it could not weigh in on the Senate’s changes. House members could agree to the Senate’s budget or send it to a conference committee to resolve the differences between the two versions.
GF support for the Department of Corrections would fall by about $2 million, or 0.5 percent, next year under the Senate’s budget, even though Alabama’s prison system is operating at nearly twice its designed capacity. Sen. Cam Ward, R-Alabaster, who chairs the Joint Legislative Prison Committee, said the recent federal report on problems at the Julia Tutwiler women’s prison in Wetumpka “should have been a wakeup call for all of us.” The Senate’s GF budget includes $3.5 million for an overflow facility to help house some inmates from the overcrowded prison. The GF proposal also includes $250,000 for a new ombudsman program for Tutwiler prisoners who report mistreatment.
Tough decisions lie ahead for lawmakers in the next few years, Ward said, and he predicted sentencing reform proposals will be among them. “Money alone will not get us out of this trouble,” Ward said. “If we don’t deal with it, trust me, in the next couple of years, someone will deal with it for us.”
State employees each would receive a $400 bonus next year under the Senate’s budget. Senators voted 15-13 to reject a proposal by Sen. Roger Bedford, D-Russellville, to provide a 3 percent raise instead. Medicaid funding would increase by 11.4 percent next year, though the amount would fall short of what State Health Officer Don Williamson said the agency needs from the GF. Williamson said Medicaid could endure at the proposed funding level by cutting costs in the prescription drug program and other areas.
Conference committee trims pre-K, DHR increases in education budget
A legislative conference committee Thursday scaled back funding increases for the state’s pre-K program and the Department of Human Resources (DHR) under next year’s ETF budget. Neither the House nor the Senate considered the compromise plan before adjournment Thursday.
Committee members amended the $5.9 billion budget to boost the amount set aside to repay money borrowed from the Alabama Trust Fund (ATF) in prior years. The ATF, which receives royalties from offshore oil and gas drilling in Alabama’s coastal waters, is the funding source for the ETF’s rainy day account. About $45 million would go toward repayment under the compromise budget, up from $27.6 million in the version that the House narrowly passed Tuesday.
The committee’s budget would pare back ETF funding increases for pre-K, DHR and other services. Alabama’s pre-K program would get $8 million more next year, down from the $10 million boost in the House’s budget. DHR would receive an extra $13 million, not $14 million, from the ETF to help offset a proposed GF cut. Dual enrollment programs also would lose $1 million of their proposed increase.
K-12 teachers would not see a raise or a bonus next year under the committee’s plan. The compromise budget includes money to hire 200 new K-12 teachers next year. (The House budget would have paid for 400 new middle school teachers.) The committee’s plan would increase state funding for teachers’ health insurance, though not by as much as Bentley requested. The governor and lawmakers are nearing an agreement on insurance funding, the Montgomery Advertiser reported Thursday night.
Sen. Trip Pittman, R-Montrose, who chairs the Senate’s ETF budget committee, said meeting the state’s constitutional duty to repay the rainy day fund is a high priority. Pittman also said he is concerned that some agencies traditionally funded out of the GF have begun relying more and more on the ETF for their state support. “As long as we allow this money to continue to be shifted, we’re undermining the intent to keep those funds to utilize for education,” Pittman said. “It doesn’t leave us with enough money to do what we need to do.”
Budgets still struggling with recession’s legacy
Alabama is one of the only states with two major state operating budgets. The ETF budget funds K-12 schools, two-year colleges and public universities, as well as other state and local services related to education. The GF budget provides support for all other state services, including public health, public safety and child welfare.
Individual income taxes and sales taxes are set aside for the ETF and can be spent only on educational functions. Revenues from sales taxes and income taxes tend to rise and fall with the economy, allowing the education budget to make up for bad years during good years and to save some money for years when the economy is not doing as well.
The GF budget lacks this flexibility because its revenue sources are not as responsive to economic changes and do not grow quickly enough to keep pace with cost increases. That leaves the GF with a structural deficit, meaning it often is strapped for cash even when the economy is doing well.
Both budgets will be awaiting legislative action when lawmakers return April 1 for the 28th of 30 meeting days during the 2014 regular session, which is expected to last until early April.
By Chris Sanders, communications director. Posted March 20, 2014.
2014 legislative update: Alabama Senate committee amends execution drug secrecy bill, approves HIV drug redistribution bill
An Alabama Senate committee Wednesday unanimously approved a bill that would keep the identities of people involved in carrying out state-sanctioned executions secret in most instances. But the Senate Health Committee amended the bill to divulge the names of companies that manufacture or supply lethal injection drugs if a judge orders their release. HB 379, sponsored by Rep. Lynn Greer, R-Rogersville, awaits consideration by the full Senate.
The original HB 379 would have kept secret, in all instances, the identity of people involved in carrying out executions, along with the identity of the maker and provider of drugs used in lethal injections. Greer said states that use lethal injection in executions have difficulty obtaining drugs for that purpose because many companies fear lawsuits.
Sen. Cam Ward, R-Alabaster, is an attorney who chairs the Senate Judiciary Committee and serves on the Health Committee. Ward said he understands the goals of Greer’s bill but has grave concerns about “creating an area of complete immunity” in state law that prohibits divulging the information in every instance. The committee approved two Ward amendments to allow the information to be released under a court order.
Sen. Linda Coleman, D-Birmingham, said the state should not enact a law that effectively could prevent prosecution in all cases. “Somebody could inject Drano and not be prosecuted” under the original bill, Coleman said.
Sen. Billy Beasley, D-Clayton, said decisions about immunity are not easy ones. He pointed to people in the audience from a victim’s advocacy organization. Beasley said the issues gave him an uneasy feeling of protecting “someone who committed the crime of death,” but he voted for Ward’s amendments and the bill.
Randy Hillman, executive director of the Alabama District Attorneys Association, said the law would apply to a very narrow set of circumstances involving a shrinking number of drug providers. Some defense attorneys seeking to stop executions file court challenges related to the drugs used in lethal injections.
Alabama began using lethal injection in executions after the state retired “Yellow Mama,” the electric chair used from 1927 to 2002. Sen. Gerald Dial, R-Lineville, questioned whether the state might have to return to using electrocution to carry out death sentences if HB 379 does not pass.
Bill to allow redistribution of some unopened HIV drugs advances
The Senate committee Wednesday also approved a bill that would enable pharmacists at or affiliated with HIV clinics to redistribute unused HIV medications originally prescribed for other patients. HB 138, sponsored by Rep. Patricia Todd, D-Birmingham, awaits consideration by the full Senate. Committee members amended Todd’s bill to match a similar bill – SB 437, sponsored by Sen. Linda Coleman, D-Birmingham – that won committee approval last week.
HIV clinics now must destroy unopened medications if patients do not show up for treatment. HB 138 would allow pharmacies to dispense those drugs to other patients and would set controls on handling and oversight of the drugs. Arise and other consumer advocates last year urged Gov. Robert Bentley to support this policy change as his Medicaid Pharmacy Study Commission met to look at ways to reduce costs in the state’s Medicaid drug assistance programs.
Lawmakers will return Thursday for the 27th of 30 allowable meeting days during the 2014 regular session, which is expected to last until early April.
By M.J. Ellington, health policy analyst. Posted March 19, 2014.
2014 legislative update: Final shape of General Fund, education budgets unclear as plans advance in Alabama Legislature
Alabama’s prison system would get slightly less money next year under a General Fund (GF) budget that cleared the Senate’s GF budget committee 9-1 Wednesday. Even though the committee’s budget includes more prison funding than the House-passed version, total GF support for the Department of Corrections next year still would fall by about $2 million, or 0.5 percent. The full Senate could consider the budget as soon as Thursday.
The committee’s budget would provide $4.8 million more to the overcrowded Alabama prison system than the House version would. Of that amount, $3.5 million would be earmarked for a facility to house some inmates from the Julia Tutwiler women’s prison in Wetumpka. For the last year, Tutwiler has been the subject of a federal investigation into reported sexual assaults of prisoners by corrections officers. The money would be spent to renovate an overflow facility for Tutwiler, which operates at more than twice its designed capacity.
Corrections also received an additional $1.3 million to improve security systems in male maximum-security prisons. In addition to the new women’s facility, the Senate committee approved $250,000 for a new ombudsman program for women prisoners who report mistreatment by corrections officers.
Sen. Cam Ward, R-Alabaster, who chairs the Joint Legislative Prison Committee, praised the GF budget committee’s efforts to address the problems at Tutwiler but said more changes will be needed. “There is only so much we can rely on in the budget to fund prisons and to hope these problems will go away,” Ward said. “Until we get serious about overcrowding, we cannot build our way out of this problem. We cannot budget from crisis to crisis. Leadership will be needed in 2015 to support corrections.”
The Senate committee’s $1.8 billion GF budget is nearly $15 million larger than the House-passed version. The committee’s budget includes $4.5 million to provide a state employee bonus of $400 per state employee. HB 367, sponsored by Rep. Steve Clouse, R-Ozark, would provide that bonus, as well as a conditional cost-of-living increase for state employees if revenues become available.
The Department of Public Health would receive an extra $1.25 million for research of cancer, neurodegenerative diseases and psychiatric disorders. The committee also boosted public health funding by $150,000 to establish a grant program for free health clinics across Alabama. The Department of Mental Health’s appropriation would increase by $1 million, of which about $23,000 would be earmarked to help improve autism services.
Medicaid funding would increase by 11.4 percent next year under the committee’s GF budget. That amount, unchanged from the House-passed budget, still would fall short of what State Health Officer Don Williamson said the agency needs from the GF. Williamson said Medicaid could survive next year at that funding level by finding more ways to trim costs in the prescription drug program and other areas.
Tight education budget wins House approval by narrow margin
A deeply divided Alabama House voted 51-47 Tuesday for a $5.9 billion Education Trust Fund (ETF) budget that does not include Gov. Robert Bentley’s requested 2 percent teacher pay raise or the Senate-passed 1 percent teacher bonus. Instead, the House version would increase state funding for K-12 teachers’ health insurance, though not by as much as Bentley requested. The ETF budget, which the Senate passed last month, has gone to a conference committee to resolve the differences between the two versions.
House members answered Bentley’s call to expand ETF support for early childhood education programs, giving the state’s pre-Kand Home Instruction for Parents of Preschool Youngsters (HIPPY) initiatives an additional $11.6 million. The K-12 Foundation Program, the largest source of state K-12 support, would receive $19.6 million more next year under the House version than from the Senate’s budget, for a total increase of $80.7 million, or 2.2 percent.
The House also responded to state school Superintendent Tommy Bice’s request for more money for buses and new middle school teachers. The House budget includes $8.7 million in additional transportation money and more funding to hire another 400 middle school teachers.
Two-year colleges and four-year universities would see slight ETF funding increases next year under the House’s budget. Lawmakers reversed a $10 million funding cut for Alabama State University (ASU) that cleared the Senate. The cut angered many members of the Legislative Black Caucus and encouraged many ASU students to come to the State House this month to support their school.
ETF support for the Department of Human Resources (DHR) would more than double next year to help offset a proposed cut to its GF support. The departments of Mental Health and Public Health would see little change to their ETF funding next year.
The House-passed budget alsohas a number of other line items for non-education programs, including a $2.6 million increase for the Department of Commerce, giving the agency a total appropriation from the education budget of $54.2 million. Rep. Patricia Todd, D-Birmingham, criticized the Legislature for using education dollars for non-classroom purposes. “There are a lot of things in the budget that don’t focus on children, like the Veterans Affairs Department and the Department of Commerce,” Todd said. “I’d like the budget to be entirely about public education.”
State law places a spending cap, informally called the rolling reserve, on the amount that can be spent from the ETF in any given year. The House’s budget would exceed this cap by $24 million while budgeting $27.6 million to repay money borrowed from the Alabama Trust Fund (ATF) in prior years. The ATF, which receives royalties from offshore oil and gas drilling in Alabama’s coastal waters, is the funding source for the state’s ETF rainy day account.
Lawmakers will return Thursday for the 27th of 30 allowable meeting days during the 2014 regular session, which is expected to last until early April.
By Carol Gundlach, policy analyst. Posted March 19, 2014.
2014 legislative update: Payday loan database wins Alabama Senate committee's approval
A statewide payday loan database moved one step closer to becoming a reality Tuesday when an Alabama Senate committee voted 6-0 for it. HB 145, sponsored by Rep. Patricia Todd, D-Birmingham, now moves to the full Senate, which could vote on the plan later this week. The House voted 93-1 for the bill last week.
Committee chairman Sen. Slade Blackwell, R-Mountain Brook, described the bill as "non-controversial." Still, after a series of questions from Sen. Roger Bedford, D-Russellville, members of the Senate Banking and Insurance Committee amended the bill to require that the database be competitively bid.
The amendment could slow the bill down if it wins Senate approval. HB 145 would have to return to the House because the language no longer would be identical to the version the House passed. The House either could accept the Senate's changes or send the bill to a conference committee to resolve the differences between the two versions.
HB 145 would not reduce the annual interest rate that payday lenders can charge in Alabama from the current 456 percent APR. But a common database would make it possible to enforce a current state law that prohibits borrowers from taking out more than $500 in payday loans at any one time. Without a single statewide database, many borrowers can hop from storefront to storefront and take out $500 payday loans from each, racking up thousands of dollars of debt. The database would alert lenders when a borrower already had reached the $500 cap and prevent them from extending additional loans to that borrower.
The state Banking Department last year proposed regulations to create a common database, but some lenders sued to block the plan, claiming the department lacked the authority to do so. Todd's bill would require lenders to submit information annually to the department, which many advocates say would greatly improve available data about the industry.
Lawmakers will return Wednesday for the 26th of 30 allowable meeting days during the 2014 regular session, which is expected to last until early April.
By Stephen Stetson, policy analyst. Posted March 18, 2014.
2014 legislative update: Education budget, landlord-tenant changes, HIV drug bill advance in Alabama Legislature
K-12 teachers in Alabama wouldn’t get a raise next year under the Education Trust Fund (ETF) budget that a House committee approved Wednesday. The House is expected to vote on the plan next week.
The committee’s $5.9 billion budget would restore $10 million of state funding for Alabama State University that the Senate had removed. It also would include slight increases for K-12 and higher education, though next year’s ETF funding still would not come close to pre-recession levels. Check out AL.com’s report for more details.
Landlord-tenant revisions move closer to becoming law
Bills that would adjust several parts of Alabama’s landlord-tenant law in property owners’ favor are on the move in the Legislature. Without debate, the House voted 98-0 Tuesday for HB 523, sponsored by Rep. Paul Beckman, R-Prattville. A day later, a House committee approved SB 291, sponsored by Senate President Pro Tem Del Marsh, R-Anniston.
Both proposals would give landlords more time to refund a security deposit or give notice of why they are keeping some or all of it. The bills would increase that window from 35 days to 60 days. The measures also would allow landlords to treat a property as abandoned if electrical service is cut off for at least a week. In addition, landlords would have to provide only a seven-day written notice if they plan to terminate the lease for a violation that does not involve failure to pay rent. That would be down from the current 14-day timetable.
The only difference between the bills involves renters’ right to correct problems cited as a lease violation without getting the landlord’s written consent. SB 291 would give renters four chances every 12 months to correct such problems, while HB 523 would provide only two chances every 12 months.
Senate panel OKs bill to allow redistribution of some unopened HIV drugs
Pharmacies that dispense HIV medications for or in HIV clinics could redistribute certain unopened drugs under a bill that the Senate Health Committee approved Wednesday. SB 437, sponsored by Sen. Linda Coleman, D-Birmingham, moves to the Senate. A nearly identical House bill – HB 138, sponsored by Rep. Patricia Todd, D-Birmingham – passed the House 99-0 last week and awaits the Senate committee’s consideration.
HIV clinics now must destroy unopened medications if patients do not show up for treatment. HB 138 and SB 437 would allow pharmacies to dispense those drugs to other patients and would set controls on handling and oversight of the drugs. Arise and other consumer advocates last year urged Gov. Robert Bentley to support this policy change as his Medicaid Pharmacy Study Commission met to look at ways to reduce costs in the state’s Medicaid drug assistance programs.
Lawmakers will return Tuesday for the 25th of 30 allowable meeting days during the 2014 regular session, which is expected to last until early April.
By Chris Sanders, communications director. Posted March 14, 2014.