Harvey Peeler

The state Department of Health and Human Services needs to crawl out of a $228 million hole for this fiscal year, alone. Next year, deficit estimates top $500 million. But, it doesn’t have to stay this way. That’s why Senate Republicans led the fight today to pass S. 434 — it removes budgetary constraints on the actions of agency director Tony Keck and gives him and his department more flexibility as it comes to this fiscal crisis.

The legislation, chief sponsored by Senate Majority Leader Harvey Peeler and cosponsored by Senators Kevin Bryant and Lee Bright, requires the ability to purchase generic drugs instead of more expensive name brands. Most importantly, it repeals part of a proviso that stopped any DHHS director from modifying the schedule by which doctors and hospitals were paid through the state’s administration of Medicaid.

“This bill is all about untying Mr. Keck’s hands and allowing him to do his job as effectively as he can,” Peeler said following the vote. “That doesn’t mean he has to cut programs, it means he can cut. With such a huge deficit, we need Keck to be running his own agency, not micromanaged by the legislature.”

The bill’s passage is also seen as a win for Gov. Nikki Haley. It both invests more power to an executive branch agency and hands those reigns over to one of her recent appointments. The budgetary problems within DHHS — and Medicaid in particular — have been high on issues to address for both the governor and the legislature as they entered this session.

Keck has said that he’s looking at making health care providers modify their staffing ratios, increasing patient co-pays and taking a hard line in favor medical tort reform. Senate Republicans are ready to help him in any way possible fix the agency’s financial problems.