State Society Continues Work on Mcare Crisis
Pennsylvania Medical Society leaders and executives continue to meet with legislators and the Rendell administration on proposals addressing Mcare abatement, Mcare phase out, and health care for the uninsured.
Representatives from the governor’s office met with State Society staff on May 5, 2008, to review the administration’s plan to fund the Pennsylvania Access to Basic Care program (PA ABC), which is included in Senate Bill 1137. The Medical Society staff is reviewing additional data that was provided by the Rendell administration at the meeting.
SB 1137 has been passed by the state House of Representatives and is being considered by the state Senate. It also would extend Mcare abatement for 2008 and plan for Mcare phase out, but would require significant revision to meet those goals.
In addition to Mcare funds from the Health Care Provider Retention Account (HCPRA), funding for PA ABC would require an increase of the cigarette tax, a new smokeless tobacco tax, and increased federal funding. Republicans, particularly Senate leadership, have repeatedly stated their opposition to imposing any new taxes. In general, Senate and House Republicans emphasize the need to cut health care costs in lieu of creating a new insurance program.
The governor’s office said they would put aside $258 million of the HCPRA funds to pay off claims after the Mcare Fund has been phased out. After the Mcare program ends in 10 years, according to the plan, the per pack cigarette tax would be continued for seven more years to fully retire any unfunded Mcare liability.
The governor’s office continues to link Mcare abatement extension and phase-out to a plan to expand health insurance coverage for the uninsured and underinsured. The Pennsylvania Medical Society strongly supports expanded health insurance coverage but believes that these issues should be considered separately.
The Society also is concerned that SB 1137 does not adequately address funding for PA ABC, does not legislate a guaranteed funding stream to pay off the unfunded liability, and ties Mcare abatement to participation in PA ABC.
The State Society has met on separate occasions with Republican leadership in the Senate, as well as other legislators from both sides of the aisle.
Last Updated: 8/13/2008