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SNAP Speaks Out on PA Budget Issues

In a series of three new position papers, the Safety-Net Association has laid out the case for why Pennsylvania needs to fund its Medicaid program adequately in the state’s upcoming 2015 fiscal year.
The first paper, “Pennsylvania Safety-Net Hospitals:  Economic Engines Driving Pennsylvania Communities,” documents the degree to which safety-net hospitals not only provide significant numbers of jobs but also offer higher wages than other hospitals and other Pennsylvania employers.
Safety-Net Association of Pennsylvania logoThe second paper, “The Importance of Preserving Uncompensated Care Payments,” notes that Pennsylvania’s safety-net hospitals, just 25 percent of the state’s acute-care hospitals, provide nearly 50 percent of the $1 billion worth of uncompensated care hospitals in the state provide every year.  The state helps underwrite some of those costs through Tobacco Uncompensated Care fund payments – proceeds of the national tobacco settlement of 1998 – but that funding is now in jeopardy.
And the third paper, “The Need for Stable and Predictable Funding Amid Increasing Challenges,” outlines the enormous and at times conflicting pressures that government and others are exerting on hospitals and explains that while safety-net hospitals look forward to these challenges, they need stable and predictable Medicaid funding to help them rise to the occasion.
SNAP issues these papers as lawmakers in Pennsylvania struggle with an FY 2014 revenue shortfall of more than $500 million and an anticipated shortfall of another $880 million in the coming 2015 fiscal year.
See SNAP’s three new position papers here.

2014-06-20T06:00:20+00:00June 20th, 2014|Pennsylvania Medicaid policy, Pennsylvania state budget issues, Safety-Net Association of Pennsylvania|Comments Off on SNAP Speaks Out on PA Budget Issues

Late Budget for PA?

Pennsylvania’s constitution calls for the state to adopt a budget for the next fiscal year by June 30, the end of its fiscal year, but it is looking more and more as if the legislature and governor will miss that deadline this year.
Although budgets typically come easily when the same party controls the governor’s mansion and both chambers of the General Assembly, the state’s revenue shortfall, a structural deficit that will carry over into next year, and the introduction of additional issues into the budget process appear to be slowing progress toward adopting a spending plan for the state’s 2015 fiscal year.
To reinforce the notion that June 30 may come and go without a budget adopted, state Senate majority leader Dominic Pileggi recently told members of his Republican caucus to put their fourth of July celebration plans on hold because their work for the legislative season may not be done.
At stake for Pennsylvania’s safety-net hospitals is funding for the state’s Medicaid program.  The budget includes numerous items that may prove tempting for officials to prune in search of money to close the current revenue shortfall.  Most tempting may be millions in Tobacco Uncompensated Care Fund revenue frozen by the Corbett administration last year in response to an arbitrator’s decision to reduce the state’s proceeds from the national tobacco settlement.
Tobacco Uncompensated Care funds help underwrite some of the $1 billion in charity care Pennsylvania’s hospitals provide annually – more than 40 percent of it provided by the 25 percent of acute-care hospitals in the state that are safety-net hospitals.  The Safety-Net Association of Pennsylvania (SNAP) is conveying its concern about the possibility of reducing this funding to legislators.
Learn more about the potential delay in adopting a state budget in this PA Politics report and this York Dispatch article.

Pennsylvania Health Law Project Newsletter

The Pennsylvania Health Law Project has released its February Health Law News newsletter.
The publication includes features on Governor Corbett’s recently proposed FY 2015 state budget; new state criteria for qualifying for PACE and PACENET, programs that help low-income seniors with the cost of prescription drugs; a clarification of state policy governing complaints and grievances about HealthChoices Medicaid managed care plans; and more.
Find the February edition of Health Law News here.

2014-03-06T06:00:37+00:00March 6th, 2014|Pennsylvania Medicaid policy, Pennsylvania state budget issues|Comments Off on Pennsylvania Health Law Project Newsletter

DPW Reaches Out to Stakeholders Over Tobacco $ Loss

Pennsylvania Department of Public Welfare Secretary Beverly Mackereth has sent the following message to health care providers and other stakeholders that will be affected by the state’s loss of $180 million in national tobacco settlement money as a result of a recent arbitrary decision.

October 2, 2013

I am reaching out to you, our valued stakeholder, to provide you with information about the potential impact of the recent tobacco master settlement agreement (MSA) decision. Please understand this legal action and the potential next steps are in no way a reflection of the quality of your work or actions as a partner with the Department of Public Welfare (DPW).  This decision stems back to circumstances that occurred in 2003.

As you may be aware, the Pennsylvania Attorney General’s office recently notified the Governor’s Budget Office that the state’s annual share of the tobacco MSA will be reduced by an estimated $180 million, or 60 percent of the state’s base tobacco payment, as a result of a decision by an arbitration panel to address claims from 2003.

While this decision has immediate impacts to Pennsylvania’s health and human services programs, the Corbett Administration is committed to maintaining direct services and mandatory healthcare programs.  I would like to reassure you that we are working diligently to ensure services will continue without interruption for all Pennsylvanians.

The reduction will occur in the state’s April 2014 MSA payment, which supports spending in the current fiscal year. This has forced the state to freeze discretionary funding from the MSA. As of now the only DPW program affected will be uncompensated care payments to hospitals.

Please be assured, this course of action was not arrived at lightly.  Immediate action is necessary in the face of such a dramatic decrease in revenues due to the MSA decision. Moving forward, the Attorney General’s Office is preparing an appeal of the decision.

The attached press release provides additional information regarding this issue. I appreciate your time and understanding as we work together on this issue.

Sincerely,
Beverly Mackereth, Secretary
Department of Public Welfare

The loss of uncompensated care payments will pose a major challenge to the state’s safety-net hospitals, which are the primary providers of care to the uninsured in Pennsylvania and the primary recipients of these funds.
Go here for the press release cited above.

2013-10-04T06:00:00+00:00October 4th, 2013|Medicaid supplemental payments, Pennsylvania Medicaid policy, Pennsylvania state budget issues|Comments Off on DPW Reaches Out to Stakeholders Over Tobacco $ Loss

Tobacco Money Loss Imperils Hospital Uncompensated Care Payments

Pennsylvania’s loss of $180 million from the national tobacco master settlement agreement could affect the state’s Tobacco Uncompensated Care program, which provides supplemental funding to hospitals that provide significant amounts of uncompensated care.
The $180 million cut represents 60 percent of the state’s overall tobacco revenue.
According to a news release from the governor’s budget office,

The reduction will occur in the state’s April 2014 MSA [master settlement agreement] payment, which supports spending in the current year’s budget.  This is forcing the state to freeze discretionary funding from the MSA, which will reduce funds for health research (Commonwealth Universal Research Enhancement [CURE] grants), Life Sciences Greenhouses, uncompensated care to hospitals, and discretionary funds related to tobacco prevention and cessation programs.

To learn more about the funding loss and its implications, see the news release “Administration Receives Notification on Impacts from Tobacco Master Settlement Agreement Arbitration Panel Decision” from the governor’s budget office.

2013-10-03T09:22:36+00:00October 3rd, 2013|Pennsylvania Medicaid policy, Pennsylvania state budget issues|Comments Off on Tobacco Money Loss Imperils Hospital Uncompensated Care Payments

New Pennsylvania Health Law Project Newsletter

The Pennsylvania Health Law Project has released its latest newsletter.
Features include articles about the state budget and the possible expansion of Medicaid eligibility in Pennsylvania; upcoming changes facing CHIP and PA Fair Care participants; an upcoming study on serving dual eligibles in the state; a new state Medicaid waiver application; and more.
Find the latest Pennsylvania Health Law Project newsletter here.
 

2013-08-15T06:00:04+00:00August 15th, 2013|Pennsylvania Medicaid policy, Pennsylvania state budget issues|Comments Off on New Pennsylvania Health Law Project Newsletter

MAAC Meets

The Medical Assistance Advisory Committee that works with the Pennsylvania’s Department of Public Welfare met recently in Harrisburg.
Among the subjects discussed during the meeting were the state’s recently passed budget, the Medical Assistance program, the prospects for Medicaid expansion, and more.
Read the official state file note summarizing the meeting hereHarrisburg, PA capital building.

2013-08-07T06:00:18+00:00August 7th, 2013|Meetings and notices, Pennsylvania Medicaid policy, Pennsylvania state budget issues|Comments Off on MAAC Meets

DPW Seeks to Renew Philadelphia Assessment

The Pennsylvania Department of Public Welfare has announced its intention to seek renewal of the Philadelphia hospital assessment first authorized in 2008.
The purpose of the assessment is to generate additional revenue to fund state Medicaid expenditures for hospital outpatient and emergency department services in Philadelphia and to provide additional funding to support the city’s public health clinics.
Read the Pennsylvania Bulletin announcement of DPW’s intention here.

2013-07-02T06:00:20+00:00July 2nd, 2013|Pennsylvania Bulletin, Pennsylvania Medicaid policy, Pennsylvania state budget issues|Comments Off on DPW Seeks to Renew Philadelphia Assessment

Budget Bill Proposed in PA House

The chairman of the Pennsylvania House Appropriations Committee has introduced a bill proposing a budget for the state’s 2014 fiscal year.
House Bill 1437, sponsored by Rep. Bill Adolph (R-Delaware), calls for $100 million less spending than the $28.4 billion budget proposed by Governor Tom Corbett in February.
The bill also includes a number of differences in proposed spending for Medicaid and Department of Health programs.
For a summary of the bill, with an emphasis on provisions with the greatest interest to Pennsylvania’s safety-net hospitals, please hit the “contact us” link at the top of this screen.

State Budget

2013-05-31T06:00:08+00:00May 31st, 2013|Pennsylvania state budget issues, Proposed FY 2014 Pennsylvania state budget|Comments Off on Budget Bill Proposed in PA House
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