Harrisburg, April 29, 2013 – State Sen. Jay Costa released the following statement on the state Insurance Department’s approval of Highmark’s proposed affiliation with the West Penn Allegheny Health System (WPAHS).
Costa has been a strong proponent of the affiliation of the insurer and the hospital system as a means to promote competition in the delivery of health care in Western Pennsylvania, preserve community access and foster the growth of jobs in the industry.
“I am very pleased with the decision by the Insurance Department to permit the affiliation of Highmark and WPAHS. This affiliation is critical to a fair, competitive and robust health-care service delivery system in Southwestern Pennsylvania.
“For too long, there has been anxiety and apprehension about health-care choices and there has been too much controversy. This approval is one step in the long-term process of resolving all the health-care issues involving Highmark, WPAHS and UPMC.
“Consumers deserve a better, stronger WPAHS health-care system with choices. The affiliation will result in greater access, reduced costs, more employment opportunities, and it will help sustain communities.
“The affiliation is critical for the future of high-quality, reasonably priced health care in the Pittsburgh area. The community hospitals that are part of the WPAHS are more than health-care operations. For many in the Pittsburgh area, these facilities are lifelines.
“I am hopeful that this is just the beginning of reforming the health-care delivery system in the Pittsburgh area.”
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Harrisburg, April 17, 2013 – Senate Democrats’ 2013-14 budget priorities are heavily weighted toward job creation, education investments, strengthening the social-services safety net, modernizing liquor sales and refocusing Pennsylvania’s business tax menu to help small businesses, they announced today at a Capitol news conference.
Senate Democratic Leader Jay Costa (D-Allegheny) said that Senate Democrats will go into this year’s budget negotiations with a clear purpose and “are resolved that the state’s economy must be jump-started. New jobs must be created and we have to reverse the negative course that the Corbett administration has plotted for Pennsylvania on education and protecting our most vulnerable.”
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“We have an opportunity and a responsibility to seek new investments and use resources that are available to change policy direction during this year’s budget negotiations.”
Costa said Senate Democrats believe that more than 120,000 jobs can be created quickly by enacting a responsible transportation plan, expanding Medicaid and using economic development policies outlined in their PA Works plan.
Costa was joined by a host of Senate Democrats in making today’s announcement.
Sen. Vincent Hughes, who serves as the Democratic chair of the Senate Appropriations Committee, said that by taking action now on key economic initiatives then restoring job creation and community programs to their past luster — before Corbett budgets sliced them to the core — is an excellent starting point.
“We need to start creating jobs right now and we can do that by working on transportation and Medicaid expansion,” Hughes (D-Philadelphia/Montgomery) said. “These initiatives coupled with rebuilding water and sewer systems, investing in schools and new technologies will create economic growth immediately.
“In addition, by investing in programs such as Main Street, Elm Street and international business we can help small business here while they market their products abroad.,”
Democratic Whip Sen. Tony Williams (D-Philadelphia/Delaware) said that the caucus was turning up the heat on the Corbett administration on jobs, health care, education and social safety net issues because the governor has failed to lead.
“We’ve outlined reasonable strategic policy alternatives that will reverse direction and provide a new path and we’ve identified revenues that will pay for the proposed expenditures,” Williams said. “Pennsylvania is rudderless on job creation and our economic numbers and business indicators under this administration illustrate the problem.
“Our most vulnerable can also not withstand another senseless round of Corbett cuts and we have to restore programs that promote help for those in need.”
Williams said that Pennsylvania is now 43rd in job creation, falling from eighth place among all states under Gov. Ed Rendell’s leadership. Plus, he said, last month’s unemployment claims fell nationally to below 350,000 but, because of Corbett policy short-sightedness, Pennsylvania led the country in new unemployment claims.
Senate Democrats said that they have laid out specific plans to achieve results in the 2013-14 budget in five areas. These include: strategic investments to create jobs; improving education; repositioning business taxes while closing business tax loopholes; modernizing the wine and spirits stores; and repairing and protecting social safety net programs.
The caucus leaders said that they’ve noted at least $750 million in annual savings, plus another $150 million in one-time revenues. They also said that we need to find resources to pay for specific new expenditures including $225 million for basic education, $50 million to aid distressed cities and communities, $40 million for transitional housing and homeownership among other items, and funds for new tax credits for a variety of areas including film production.
Democrats said that priority details include a three-year phase in of new monies to restore education dollars and key student-performance based initiatives that were cut by the Corbett administration in the last two budgets.
They also said that they would emphasize rebuilding struggling communities through their Growth, Progress and Sustainability (GPS) plan; seek new funds for transitional housing and new homeownership opportunities; and push for modernizing the wine and spirits stores rather than the opt for the risky privatization scheme that has been sought by the Corbett administration.
The Democrats indicated that they expected the negotiations to become more focused once the Senate returns to session in late April.
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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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Harrisburg, March 21, 2013 — Senate Democratic Law and Justice Chair Jim Ferlo (D-Pittsburgh) and Senate Democratic Leader Jay Costa (D-Allegheny) today released statements expressing their opposition to the passage of the wine and spirits privatization plan in the Pa House of Representatives.
“Governor Corbett and House Republicans are giving away an important public asset in their ideological thirst for privatization,” Ferlo said. “Their plan will destroy consumer choices, reasonable prices, family sustaining jobs, and it will cause social disruption in our communities.”
Expressing disappointment on behalf of his constituents, Ferlo questioned the motives in the privatization plan.
“Through today’s vote for wine and spirits privatization, Republican leadership in the governor’s office and the state House continued its assault on the middle class, showing no hesitation in eliminating family-sustaining, middle class employment in favor of giving their rich allies a chance to sell alcohol and pocket the profits.”
Ferlo strongly maintains that a better approach is his modernization bill; legislation that has gained 26 bipartisan co-sponsors. The bill would allow for more appropriate pricing, flexibility in hiring, acquisition of in-demand products and direct shipment of wine, while also providing for package reform in beer sales.
Senator Costa has long maintained the lack of need for privatizing the Liquor Control Board operations.
“I am very disappointed by the passage of the liquor privatization legislation by the House,” Costa said. “Instead of privatizing we should be modernizing the wine and spirits system. We should not be ceding the control of alcohol to companies that are driven by profit and not control.”
Costa expressed his deep concern about the loss of thousands of jobs to hard working Pennsylvanians, amidst the potential, significant loss of revenue for the commonwealth.
“The republican scheme to rely on one-time revenues while cutting thousands of family-sustaining jobs opens a door to fiscal instability that we will never be able to close. The House vote today puts hundreds of millions of dollars in the balance, and thousands of dedicated employees are caught in the middle of this debate.”
Costa asserted that divesting our current system for one that offers no future guarantees is a gamble that no one should be willing to make.
“This is the wrong time to allow a massive expansion of access to alcohol without proper safeguards,” continued Costa. “The liquor plan that passed the House is purposely confusing and convoluted and its passage was driven by special interests and political expediency.
“Gov. Corbett’s liquor expansion plan takes Pennsylvania in the wrong direction,” Costa said.
For more information on Senator Ferlo’s Pennsylvania Liquor Control Board and beer sales modernization bill, visit http://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20130&cosponId=12007
CONTACT:
Stacey Witalec| Press Secretary
Senator Jay Costa and Senate Democratic Caucus
535 Main Capitol | Harrisburg, Pa 17120
Phone:(717)772-2368 | Cell:(717)877-2997
www.senatorcosta.com
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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Health-care coverage for an estimated 600,000 Pennsylvanians at stake
Pittsburgh, March 8, 2013 – Democratic members of the state Senate Appropriations Committee held a hearing in Pittsburgh today to receive testimony from local officials and health-care experts regarding Pennsylvania’s option to expand Medicaid coverage under the federal Affordable Care Act.
“It is my hope to rally all of us together to build a broad-based movement in order to move the governor and his administration forward into reality to join 24 other states and accept the Medicaid expansion under the Affordable Care Act,” said Sen. Jim Ferlo, who conducted the hearing. “The long-term battle on this issue is to redefine health care services that specifically meet the needs of our community.”
Ferlo was joined by Sen. Vincent J. Hughes (D-Philadelphia), who serves as Democratic chair of the committee and Senate Democratic Leader Jay Costa (D-Forest Hills). Also participating were Sen. Matt Smith (D-Mt. Lebanon), Sen. Wayne Fontana (D-Brookline), Sen. John Wozniak (D-Cambria), and Sen. Sean Wiley (D-Erie).
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Medicaid Expansion Hearing Testimony from Shona Eakin :: March 8, 2013
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Expanding Medicaid eligibility would provide health insurance coverage for an estimated 600,000 individuals while simultaneously reducing health-care costs by making preventative services more readily available. It is estimated that cost savings and additional revenue will amount to more than $670 million if the state participates in the expansion.
The Affordable Care Act (ACA) included a provision which allowed, but did not require, states to receive federal subsidies in order to expand Medicaid for the purpose of providing insurance coverage to more people.
The decision on Pennsylvania’s participation rests with Gov. Tom Corbett who has, so far, refused to participate.
Hughes made some important distinctions about Pennsylvanians who receive Medicaid: “There is a misconception of individuals on Medicaid. Recipients are all working individuals who are trying to make ends meet, and do everything that is necessary to provide for their families. Since the passage of Obamacare, now is the time to see full implementation of this plan in order to bring jobs to Pennsylvanians and savings to the state budget.”
Federal funds are available to pay 100 percent of the cost of the expansion from 2014 through 2017, at which point Pennsylvania would take on a small percentage of the costs. Following the full phase-in of state coverage, federal funds will continue to cover 90 percent of the cost of the expansion.
“I am proud that we are having this conversation in Pittsburgh today. We must make certain that we have an opportunity to expand Medicaid to more than a half million people in the commonwealth. If we accept the expansion, there is an opportunity for a significant amount of county savings and we need to highlight that benefit as well. All we need to do is weigh the evidence and do the math,” Costa said.
Studies have shown that individuals who are insured get necessary care and better manage complex, chronic issues. Without access to health care, the uninsured become sicker and ultimately rely on emergency room care that they cannot afford. Pennsylvania hospitals provide more than $800 million in uncompensated care annually, according to industry experts.
Fontana acknowledged the need to move Pennsylvania forward by expanding Medicaid coverage.
“I hope the governor is listening,” he said. “We need everyone’s support to get the message through to him because this is a vital issue for all of us.”
Testimony during the hearing focused on the importance of ensuring that those in need continue receiving access to critical health-care services.
Wiley stressed that the governor must do the right thing and expand Medicaid.
“I don’t know how any human being can look hardworking Pennsylvanians in the eye and still refuse to accept $43 billion in federal funds for much needed health-care services,” he said. “The governor’s excuse that he doesn’t trust the federal government to keep its commitment of funding is simply not an acceptable answer for anyone.”
Smith remarked that expanding access to Medicaid will not only help hospitals, taxpayers, and the state economy, but will generate billions of dollars in economic investment and jobs, studies show.
“Governor Corbett is weakening us by making us the only state in an entire region that is not opting in and reaping significant benefits that Medicaid expansion provides,” he said.
“I think it is so important for the public to know that millions of dollars could be saved here,” said Wozniak “Now is the time to start talking about what the Affordable Care Act really says and stop being disingenuous with the public.”
The hearing was held at Wyndham University Center in Oakland.
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