As part of his budget proposal, Gov. Ed Rendell is expected to press for remaining provisions in his plan to improve access to affordable health care, cut costs and enhance quality.
Portions of the plan, Prescription for Pennsylvania, have been approved since it was announced a year ago. But the governor wants action on Cover All Pennsylvanians, his proposal to make more affordable insurance available to the uninsured, and on changes that would impose new scrutiny on health insurers.
Lawmakers have shown little interest in his plan to help fund Cover All Pennsylvanians with a tax on employers that do not offer health insurance to their workers. So late last year, Mr. Rendell backed a new plan that would draw on more than $400 million accumulated in a state fund that helps doctors pay their malpractice insurance costs. The plan also calls for a 10-cent increase in the cigarette tax and a new tax on smokeless tobacco and cigars.
The governor has declined to approve the medical malpractice subsidies, known as abatements, through the state's MCare program until lawmakers agree to fund Cover All Pennsylvanians. If no deal is struck by March 31, the unsubsidized bills will come due.
For the fiscal year beginning in July, Mr. Rendell's plan calls for raising $66 million for Cover All Pennsylvanians from the cigarette tax increase and $48 million from the new tax on cigars and smokeless tobacco.
Other resources would come from federal funds, payments from participating employers and individuals, and transfers of money from programs replaced by Cover All Pennsylvanians. That year, the cost of the program would be $479 million.
No money would be needed from the malpractice insurance fund the first three fiscal years, according to projections. By the fifth year, however, about $72 million would be drawn from the fund to help pay for Cover All Pennsylvanians, along with $61 million from the cigarette tax increase and $60 million from the cigar and smokeless tobacco tax. The program cost would exceed $1 billion that year.
About 767,000 Pennsylvanians are uninsured, but officials expect about 550,000 to be eligible for Cover All Pennsylvanians. Those who would not qualify include undocumented immigrants, people who have not lacked health insurance for at least six months, and people who are eligible for other health programs like Medicaid.
