July 9th, 2009

The Patriot-News today published on op-ed by Judith Lave, Ph.D., director of the Pennsylvania Medicaid Policy Center at the University of Pittsburgh.  In the piece, Dr. Lave talks about how the proposed Pennsylvania budgets eliminate the “special appropriation” that helped fund birth expenses for low income mothers.

Writes Dr. Lave:

Gov. Rendell has indicated that the fiscal year 2009 budget deficit will reach $3.2 billion. Given the size of the deficit, the state Legislature is forced to balance the budget and make difficult choices about programs to target for savings. There is conflict as illustrated by the governor’s budget and Senate Bill 850.

A concern is the special allocation to obstetric departments that serve a high proportion of mothers and newborns covered by Medical Assistance. In FY 2008-09, the Legislature appropriated $6.9 million for these payments.

The governor’s budget would reduce those payments by $2 million, while Senate Bill 850 would eliminate them. The reduction might appear minor, but funding is critical to some obstetrical departments. With 41 percent of all births in the state covered by Medical Assistance, these special allocations to obstetric departments affect access to services and ultimately the health of mothers and newborns.

Medical Assistance plays a vital role in the commonwealth by financing health coverage for low income and disabled individuals. It now covers about 16 percent of the population, a percentage that is increasing because of the recession.

Under federal law, the Medical Assistance program must cover low-income pregnant women. However, recognizing the importance of healthy mothers and babies, the Legislature created a more generous program for pregnant women than was required. Under this program, Medical Assistance pays for prenatal and obstetrical care for otherwise uninsured women with family incomes up to 185 percent of the federal poverty level, or about $20,000 for an individual in 2009.

Read the rest of the op-ed at the Patriot.