PA Budget Proposal Expands Health Care for Uninsured Adults

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Pennsylvania State Capitol

The proposed PA budget unveiled last week increases health care spending by $800 million over the current year’s budget, providing health care for more uninsured adults.  Governor Rendell has proposed expanding the adultBasic program and will include coverage for prescription drugs and behavioral health.

Unfortunately, the adultBasic waiting list has nearly doubled within the last year to 183,000 people. This waiting list is expected to grow to 282,000 by June. The Governor’s proposal will increase the number of low-income Pennsylvanians with state-supported health care insurance by only 50,000. This increased enrollment is proposed as a “bridge” to national health care reform and will expire after four years.

The total state and federal cost for the expanded adultBasic program is projected to be $251.7 million in 2009. More than half of the funds, or $132.9 million, will come from federal matching funds. State funding for the program is derived from existing tobacco and community health reinvestment funds currently used to pay for the adultBasic program. Enrollees will pay premiums for the coverage, depending on their income level. In years three and four, a total of $66.4 million from the state’s Health Care Provider Retention Account will help support the program.

If the legislature passes this proposal, the expanded program will begin providing health care coverage to new enrollees on July 1, 2009, assuming timely passage of state legislation and approval by the federal government for the use of federal matching funds.

The Governor also highlighted efforts to help older adults receive needed support services in their own homes rather than live in a nursing facility – an option that is less expensive to taxpayers. He has proposed consolidating the Department of Aging and the Office of Long-Term Living into one department. The Governor implies that this will enable the state to provide more and better options for tens of thousands of adults with physical disabilities and older Pennsylvanians, supporting them with needed programs and services while providing opportunities to live independently and grow old with dignity.

Tracy Lawless
PA State Campaign Coordinator
HCHCW
tlawless@phinational.org


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