October 2nd, 2008

Yesterday, Gov. Rendell scaled back his health care proposal in an effort to appease Senate R’s who were opposed to the Dems’ current PA ABC plan.  Republicans questioned the affordability of the PA ABC proposal and were staunchly opposed to using increased and new tobacco taxes (a declining revenue source) as funding for the plan.

Rendell’s letter – sent yesterday to key Senate Republicans – outlined two new alternatives. Depending on the plan, the proposal would cost $723 million to $857 million by fiscal year 2012 – 2013.  The plan would insure about 250,000 adults in the state (20,000 less than PA ABC), without raising any type of taxes.  It also includes funding for free health clinics - a key component of the Senate R’s HealthNET PA proposal – and extends the MCARE fund for the next five years, another huge Republican priority.

Rendell stated in his letter that:  “Any reasonable person would recognize our consistent willingness to modify our plan. We remain resolute, however, in the goal of bringing some modest level of health care to at least a portion of the hundreds of thousands of our fellow citizens who lack insurance.” Senate Republicans, however, are still wary that with the state of the current economy, even this scaled back plan is not affordable over the long term.

On the floor last week, two initiaves that would expand health insurance unanimously passed the Senate.  SB 1422, which establishes mini-COBRA for small employers, and SB 1453, which would allow children to stay on their parents health insurance plans until the age of 29 have been sunshined for the House Insurance Committee next week.  However, because the bills have not been listed on the House Voting Schedule, according to House rules they cannot reach a vote until Wednesday October 8th.  The only way the House could vote on these measures earlier is if they suspend the rules, which is unlikely.

HB 2028, which would extend the Healthcare Cost Containment Council (PHC4) has been set on the House calendar for Monday.  Non reauthorization of PHC4 has been used as leverage by both Republicans and Democrats in the negotiations over a health insurance plan.

SB 1453, establishing the Keystone Care Prescritpion Assistance Program and SB 1564 creating the Keystone Care Program made it out of the Senate Public Health and Welfare Committee last week and are both set for second consideration on the Senate Calendar.

A bill sponsored by Rep. John Bear (R- Lancaster), HB 2034, which would provide for long-term care patient access to pharmaceuticals was reported from the Senate Health and  Welfare Committee and now heads to Senate Appropriations for consideration.