Thursday, July 2, 2009

Pennsylvania Health Care Bill on the Move 

By Nathan Benefield

Filed As:  Health Care

On nearly a straight-party-line vote, the Pennsylvania House has passed legislation (HB 1) that would significantly enhance the benefits provided to enrollees in the Pennsylvania adultBasic health insurance program for low-income individuals. Those benefits would include coverage for prescription drugs, chronic disease management, preventive and wellness care, and behavioral health care. The Pittsburgh Post Gazette has a story on the legislation.

The bill would also double the number of people able to access adultBasic from 45,000 to 90,000. AdultBasic is designed for people who earn too much money to qualify for Medicaid but can't afford private insurance. An individual is eligible for adultBasic if he or she earns $21,600 or less; a family of four can earn $44,000 or less. The Governor's administration says the cost of House Bill 1, which would be an estimated $130 million for the state, would generate far more federal Medicaid dollars. Republicans are skeptical that the cost can be covered, especially when PA faces a budget shortfall of over $3 billion. The expansion would be funded through use of the Health Care Provider Retention Account surplus (a one time revenue source) and potentially a tax on Blue Cross/Blue Shield insurance plans.

The Commonwealth Foundation has commented on this proposal (and the rhetoric behind it), which is essentially an expensive proposal to serve a small percentage of the uninsured, while raising costs for those with insurance, but eschewing any real health care reform.

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