Care For PA

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Thanks to You, State Budget Passed without Cuts to Medicaid Payments

October 15, 2006

Filed under: October 2006 Pennsylvania Hospitals Today , Stay Informed

The Issue: State Budget

Who's Affected: Patients, hospitals, communities

Lawmakers and the Governor heard you loud and clear earlier this summer when you asked them to protect your community's care by not allowing payment cuts to hospitals when they treat patients who have Medicaid.

As reported in the last issue of Pennsylvania Hospitals Today, state budget negotiations were nearing the final stage and there was great concern by citizens, the business community, and the health care community that the administration and some lawmakers would propose cutting Medicaid payments to hospitals to fund other programs. The governor's budget had called for $78 million in cuts to state funds, which would have resulted in an additional $93 million in cuts to federal matching funds--both of which are used to pay hospitals for the care that they provide to Pennsylvania's Medicaid patients.

However, because of your support, the state budget was passed by the state legislature and signed by the Governor in July without the proposed Medicaid payment cuts. When asked in the last newsletter to contact your lawmakers to let them know that you care about Pennsylvania's health care community and that they should, too, you heeded the call by logging on to PatientAccess.org to contact lawmakers. Thank you! It is this type of feedback lawmakers count on from you to help them understand what impact changes like this could have on you and members of your community.

"This is a big win for patients and communities,�? said Carolyn F. Scanlan, president and CEO of The Hospital & Healthsystem Association of Pennsylvania, a not-for-profit association that helps to support Pennsylvania's hospitals and the communities they serve. "Lawmakers and the Governor heard Pennsylvanians loud and clear. And by enacting this budget, they acknowledge the critical importance of the hospital safety net to each and every Pennsylvanian.�?

Continue to read future issues of Pennsylvania Hospitals Today to learn more about key health care issues and how they could affect your care and how you can make a difference in protecting your community's care.

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Additional Info

Another Important Issue: As we approach the fall legislative session in Harrisburg, one key issue is continuing to improve the medical liability insurance environment for Pennsylvania’s physicians. As part of that effort, hospitals are calling for the continuation of “Mcare abatement” for 2007–08. Providers who have to pay the most for their insurance have been allowed to make reduced payments until long-term changes are made to remedy the high rates charged for the insurance. Although there are signs of improvement in the medical liability system, more time is needed to lower and stabilize rates. Until then, providers should be allowed to pay a reduced rate to encourage them to continue to practice in Pennsylvania.

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