Calls on Corbett to Abandon Pension, Liquor, Revenue Linkage
Harrisburg – June 29, 2014 – State Senate Democratic Leader Jay Costa (D-Allegheny) today called on Gov. Tom Corbett to stop holding new dedicated funding for students, job creation, senior citizens and human services hostage in exchange for his pension and liquor reforms.
“It is not too late for the governor to abandon his politically motivated budget negotiating position that will result in a cut budget and hardship for citizens across Pennsylvania,” Costa said. “There is broad support in the General Assembly for a new severance tax for education, job creation and human services without linkage to ideological issues like pension reform and liquor privatization, which have no impact on this year’s budget.”
Costa said that despite the projected $1.5 billion plus budget deficit there are options available to the governor and legislative leaders to address key funding areas. He said that a new 5 percent shale extraction tax would generate in excess of $700 million and expanding Medicaid would create $400 million more.
“Expanding Medicaid doesn’t just help 500,000 individuals, including 23,000 veterans, gain access to health insurance, the savings and revenues that are generated have the potential to save the governor’s budget from becoming a fiasco,” Costa said.
Costa said that without new revenue, Republican Senate and House budget negotiators will have to cobble together a spending plan that uses budget cuts, accounting tricks and one-time transfers that will do long term harm. The governor’s own budget plan released in February used budget gimmicks.
“The governor’s bargaining position is a non-starter that threatens school funding increases, economic development investment and the ability to restore funds that were cut from his last three budgets,” Costa said. “If the governor does not relent and support new revenues such as the extraction tax and Medicaid expansion, there is going to be massive budget problems and fiscal pain that will be felt by taxpayers for years to come.”
“A good example of a cut budget was the spending plan offered by House Republicans which does little to help schools, slashes job-creating tax credits and fails to address key social service programs,” Costa said. “Students, teachers and taxpayers have suffered enough in trying to deal with the governor’s $1 billion cut and his last three budgets.”
The Pittsburgh-area lawmaker said there are even more revenues and savings options. He said that his caucus announced a detailed plan that would generate more than $1.1 billion in savings and revenues. Senate Democrats have also offered their own pension reform and liquor modernization plans.
“If the governor would just expand Medicaid and join us in supporting a 5 percent shale tax we could bolster saving and revenues by more than a billion dollars without impacting individual taxpayers,” Costa said.
Costa said that there is still time to do a budget correctly but that requires the governor and legislative Republicans to bring Senate and House Democrats on board.
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Harrisburg – June 30, 2013 – Senate Democratic Leader Sen. Jay Costa (D-Allegheny) released the following statement after the Senate passed Medicaid expansion language as a part of the Welfare Code legislation:
“The expansion of Medicaid is a win for Pennsylvania. It is responsible, meaningful and good public policy. The expansion will improve the lives of so many who need help. It will permit more than a half a million Pennsylvania citizens to gain access to health care.
“Medicaid expansion makes fiscal sense. It is fully paid for by the federal government for the first three years and it will generate significant budget savings for Pennsylvania. The expansion will save an estimated $150 million the first year and create significant additional savings in years to come.
“The expansion of the program has been a priority for Senate Democrats for many months. Senate Democrats traveled the state to learn how the program expansion will help citizens from all walks of life. We recognized its value and worked with Senate Republicans to craft language that was acceptable.
“I am very pleased that the language was approved with bi-partisan support and I am hopeful that the House will endorse the plan.”
According to independent estimates Medicaid expansion will create 35,000 to 40,000 jobs and inject $4 billion into our economy and will provide an important economic boost.
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Harrisburg – June 28, 2013 – Senate Democratic Leader Sen. Jay Costa (D-Allegheny) said that he was ecstatic that Medicaid expansion language was included in legislation that cleared the Senate Public Health and Welfare Committee today.
The expansion language was approved with a strong bi-partisan vote among committee members.
“Expanding Medicaid will deliver health care to more than a half million Pennsylvania citizens,” Costa said. “It is economically justifiable, responsible public policy and meaningful for so many who need access to health care.”
Costa said that Medicaid expansion was a priority of Senate Democrats who have championed the cause and campaigned for months for the expansion of the program. Medicaid expansion is an aspect of the federal Affordable Care Act.
“Senate Democrats have pushed the expansion for months through hearings, meetings and public statements and it remains a priority,” Costa said. “We worked with our Senate Republican colleagues to devise an agreement that opens the window for the expansion.
“We all recognize this is just the first step in the process, but it’s an important stride toward helping citizens, creating jobs, and saving precious state taxpayer dollars. I am very pleased that this provision was included in the legislation that cleared the committee.”
The legislation enables Pennsylvania to enter into an agreement with the federal government to expand the state’s Medicaid program to cover individuals who earn 138 percent of the federal poverty level. It is estimated that this expansion will permit more than 500,000 working Pennsylvanians access to health care.
The language was inserted into the Welfare Code bill and includes conditions that will have to be considered and recognized when the expansion agreement with the federal government is developed, Costa said.
According to Costa, the expansion is fully paid for by the federal government for the first three years. Independent groups ranging from the Pennsylvania Economy League to Rand Health studied the expansion and believe it will create 35,000 to 40,000 jobs, inject $4 billion into the economy and result in significant budget savings.
The state’s Independent Fiscal Office says Pennsylvania will save an average annual savings of $289 million if Medicaid is expanded.
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Costa, Hughes prod Corbett to act
Harrisburg, March 28, 2013 – Two top Democratic state Senators who have been urging the Corbett administration to expand Medicaid said the governor should pay attention to a new, detailed study commissioned by The Hospital and Healthsystem Association of Pennsylvania (HAP) that shows the advantages of enrolling more Pennsylvanians in Medicaid.
Sen. Jay Costa (D-Allegheny), the Senate Democratic leader, and Senate Democratic Appropriations Chair Sen. Vincent J. Hughes (D-Philadelphia/Montgomery) said the study underscores the arguments they and their colleagues have been making: expanding Medicaid makes fiscal, political and moral sense.
“The evidence is clear that expanding Medicaid will help hundreds of thousands gain access to health care, save the state money, bolster the economy, create jobs and not cost the Corbett administration a dime,” Costa said. “The governor needs to weigh the evidence and do the math and expand Medicaid.”
Hughes, along with his Democratic colleagues on the appropriations committee, recently held a hearing on the issue in Pittsburgh and a roundtable discussion in Philadelphia to highlight the need for the expansion. Senate Democrats have introduced Senate Bill 12 which would compel Pennsylvania to participate in the expansion.
“The HAP study is conclusive that Medicaid expansion will deliver $2.2 billion to $2.5 billion in annual federal payments to Pennsylvania, generate more than $3.2 billion in economic activity and support more than 35,000 jobs,” Hughes said. “Most importantly, the study says 350,000 low-income, non-elderly Pennsylvanians would gain health insurance.”
The HAP study said Medicaid expansion will cost Pennsylvania $1.64 billion. However, $1.46 billion will be generated by gross receipts taxes and another $270 million will be generated from personal income taxes on jobs supported by the expansion. The revenue exceeds the costs by $90 million.
The proposed Medicaid expansion would cover individuals whose incomes are at or below 138 percent of the federal poverty level. The federal Affordable Care Act (ACA) included the expansion as a part of the coverage menu but was challenged in court.
The U.S. Supreme Court upheld the constitutionality of the ACA in its June 2012 decision but said states could decide on their own if they wanted to opt in to the expansion of Medicaid.
“We need to move aggressively in implementing provisions of the ACA so that we can help those who desperately need health care,” Hughes said. “The Corbett administration has been slow to come around to what we’ve been saying about the advantages of participating in the expansion of Medicaid.
“A small legion of Republican governors – including those from surrounding states and others who have far-right philosophies – have already said they will lead their states in helping more of their residents by expanding Medicaid. We need Gov. Corbett to take a good look at this study and lead.”
The HAP study says the enrollment of 350,000 more Pennsylvanians in Medicaid will drop the uninsured rate from 12.7 percent to 8.1 percent, and then 4.8 percent in 2016 when the non-compliance penalties of the ACA take effect.
“There is no question the HAP study shows there is significant upside to Pennsylvania’s participation in Medicaid expansion and very little downside,” Costa said. “The governor needs to understand we have a great opportunity and that expanding Medicaid is the right thing to do.”
The senators said that the HAP report only looked at economic benefits of the Gross Receipts Tax and the Personal Income Tax. It did not examine additional spinoff economic benefits or savings from offsets of state-funded programs that would result from the expansion.
A broader analysis by the Senate Democratic caucus concluded that 650,000 Pennsylvanians would gain access to health insurance through the Medicaid expansion, $670 million in new revenues would be generated, and $4 billion in federal monies would be leveraged.
The HAP report, “The Economic Impact of Medicaid Expansion on Pennsylvania,” was conducted by RAND Health, which is a research unit affiliated with the RAND Corporation.
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Measure would require Pennsylvania’s participation
HARRISBURG, March 13, 2013 – Senate Democrats announced sweeping legislation that would compel Pennsylvania to participate in the expansion of Medicaid so that 650,000 more Pennsylvanians would be covered by health insurance.
The lawmakers said they are taking this action because Gov. Tom Corbett has refused to allow Pennsylvania to join a litany of other states that have agreed to expand Medicaid to cover persons making up to 138 percent of the federal poverty level.
They say that legislation is required if Pennsylvania is going to participate.
“There is simply no good reason why Pennsylvania should not be participating in the expansion of Medicaid,” Sen. Jay Costa (D-Allegheny), the Democratic Leader, said. “It makes no sense to deny health care for 650,000 people, turn down $4 billion in federal money, give thumbs down to an estimated 41,000 jobs and refuse the more than $670 million that would be generated from savings and new revenues.
“Senate Democrats believe legislation needs to be passed so Pennsylvania can expand the Medicaid program to cover more of our citizens, so we are introducing legislation that compels Pennsylvania to participate.”
As a result of the ruling of the United States Supreme Court in the Affordable Care Act decision (ACA), states were able to opt into the ACA’s Medicaid expansion provisions. The court left the decision on whether to participate in the hands of the governors and state leaders.
“The governor has provided huge tax giveaways to Pennsylvania’s largest corporations, costing the commonwealth almost $900 million,” said Sen. Vincent J. Hughes (D-Philadelphia/
Montgomery), the Democratic chair of the Senate Appropriations Committee, said. “He should be able to help low-income working people.”
“Republican governors from surrounding states including New Jersey and Ohio have signaled that they want citizens of their states who qualify to access health care,” said Hughes. “This should not be a political issue and those who need access to health care should be able to get help without becoming the pawns in a partisan battle.”
Senate Democrats said that they don’t understand the governor’s hesitation and his delay tactics that prevent participation.
“The lives of real people are on the line. The time for delay is over,” said Sen. Anthony H. Williams (D-Philadelphia/Delaware), the Democratic Whip. “More of our citizens should have access to health care, because that’s the intent of the law of the land. And we refuse to stand idly by as the governor fails to deliver for our most vulnerable citizens.
“We need to pass legislation that will ensure that Pennsylvanians in need of health care are covered. The General Assembly and the governor have a moral responsibility to act in order so we can make this expansion happen. We have the collective responsibility here to lead.”
Senate Democrats said that they have incorporated a provision in their legislation that allows Pennsylvania to back out of the program if the federal funding commitment evaporates. They said that this provision should allay fears expressed by the governor that Pennsylvania would be on the hook for funding the whole program if federal dollars disappear.
“Introducing legislation to require Pennsylvania to participate in the expansion of Medicaid is the right thing to do,” Sen. Shirley Kitchen (D-Philadelphia), Democratic chair of the Senate Health and Welfare Committee, said. “We need to be aggressive and use the resources that we have available to make health-care choices available.”
The Democrats said that there should also be a discussion of additional coverage options in the wake of Commonwealth Court’s decision that invalidated the diversion of tobacco funds that funded the state’s adultBasic insurance program.
The adultBasic program covered low-income working Pennsylvanians and was eliminated by the Corbett administration citing the cost of the program and lack of funds. The program was paid for by tobacco settlement monies and contributions from health insurance companies.
“In light of the court’s decision, there is an opportunity for a dialogue to be reopened about how we can restore the adultBasic program, create a new program or augment the expansion of Medicaid so that more Pennsylvanians can be covered,” Sen. Michael Stack (D-Philadelphia), Democratic chair of the Senate Banking and Insurance Committee, said. “We can do more now that the court has said that tobacco monies cannot be diverted.”
“We should be aggressively pursuing options that produce a more extensive health insurance network.”
The ACA covers 100 percent of the cost of the expansion for the first three years. The percentage is gradually reduced over time but the federal government will pick up at least 90 percent of the cost.
Senate Democrats said that they expected the bill to be formally introduced next week.
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