Allegheny Conference on Community Development and Greater Philadelphia Chamber of Commerce Joint Statement on Governor Corbett’s “Healthy Pennsylvania” Proposal

Background

The United States Supreme Court ruled in June 2012 that Medicaid expansion would be a separate piece of the mandatory federal Affordable Care Act provisions, and would be determined by states individually. Since that time, states have been deciding whether to accept or deny Medicaid expansion, which would be an expansion of the program to include individuals who earn less than 138% of the Federal Poverty Level. The federal government has offered to provide an incentive to states who decide to expand the program – it will fund 100% of the costs of those who are newly eligible during the initial three years, 2014-2016. After 2016, federal assistance will begin to decline, reaching 90% by 2020, and is expected to stay at 90% for subsequent years.

In September 2013 Governor Corbett unveiled his “Healthy Pennsylvania” proposal, which addresses healthcare access, quality and affordability in the Commonwealth. In December 2013 the Governor indicated that the Commonwealth will officially move forward with the federal government to seek approval for the portion of his package that addresses plans for reforming the Medicaid system and expanding coverage to the Commonwealth’s uninsured population. Specifically, the plan proposes using federal expansion funds to allow these individuals to buy private market insurance. It also suggests increased premiums to persons at the higher end of the income scale, and imposes a job-search requirement on people who work less than 20 hours per week.

Statement

The Allegheny Conference on Community Development and the Greater Philadelphia Chamber of Commerce work together on public policy initiatives that are of interest to both organizations. Over the past two years healthcare reform and specifically, coverage of Pennsylvania’s uninsured population, has been a joint priority for both organizations.

Earlier this year the Conference and Chamber agreed that Medicaid expansion is an important decision for the Commonwealth of Pennsylvania, and should be reviewed carefully. With the release of data-driven reports from Families USA, Rand Corporation, the Pennsylvania Economy League and the Independent Fiscal Office – all of which reached similar conclusions regarding increased lives covered, increased jobs and increased economic activity for the Commonwealth – the Conference and Chamber decided to support Medicaid expansion based upon its positive fiscal impact.

The Conference and Chamber applaud the Governor’s release of his “Healthy PA” plan. After discussing the proposal at a fall 2013 joint meeting, the leadership of both organizations agreed that it is a good step forward that addresses increased coverage for uninsured individuals, as well as issues such as healthcare access, quality and affordability in the Commonwealth.

Both the Conference and Chamber commend the Governor and the General Assembly for the passage and signing of recent “apology”/benevolent gesture legislation, Act 79 of 2013, a component of the “Healthy PA” plan. This kind of legal reform is important to the continued improvement of the business climate in the Commonwealth.

Our organizations look forward to working with the Administration and the General Assembly where appropriate, in helping to move additional Healthy PA proposals and reforms forward.