Pennsylvania Gov. Rendell Tries To Push Cover All Pennsylvanians Program Funding Through Legislature

Main Category: Health Insurance / Medical Insurance
Article Date: 21 Jan 2008 - 8:00 PDT

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Pennsylvania Gov. Ed Rendell (D) has said he will not approve medical malpractice subsidies for physicians until state lawmakers agree to fund the Cover All Pennsylvanians program, the Pittsburgh Post-Gazette reports (Fahy/Barnes, Pittsburgh Post-Gazette, 1/13).

Rendell's new funding plan would use half of the revenue from the state's Health Care Provider Retention Account, which is projected to reach $414 million by Dec. 31. The account, funded by 25 cents of the state's $1.35-per-pack cigarette tax, was created to offset medical malpractice costs for physicians and hospitals in an effort to keep doctors and specialists in the state. According to Rendell, fewer malpractice lawsuits and lower malpractice insurance premiums have led to a surplus in the account that the state can afford to use. Rendell also would pay for the coverage expansion through a 10-cents-per-pack increase in the state cigarette tax, which would generate an estimated $65 million annually, and a first-time tax on the sale of cigars and smokeless tobacco, which could generate $50 million annually. He also would use $40 million from a fund that pays for the care of people involved in catastrophic automobile accidents (Kaiser Daily Health Policy Report, 12/11/07).

If lawmakers do not reach an agreement by March 31 -- when the subsidies, called abatements, expire -- physicians would have to pay hundreds to tens of thousands of dollars more for medical malpractice insurance. Rendell has proposed extending the abatements for 10 years, but only if funds are allocated for Cover All Pennsylvanians.

State Sen. Don White (R) said Rendell is "holding doctors and hospitals hostage" while he tries to force the Legislature to approve funding for the plan. Rendell has said that he is willing to consider other funding proposals but that action needs to be taken. The governor also said he would campaign against lawmakers who do not endorse extending health coverage to the uninsured (Pittsburgh Post-Gazette, 1/13).

Analysis
The Post-Gazette on Thursday examined the escalating battle over Rendell's plan, which "carries political dangers for both Democrats and Republicans in the Legislature." According to the Post-Gazette, "For Democrats, there is the risk of voting for higher taxes in a year when they're running for re-election." The Post-Gazette reports, "Republicans also face a political risk by opposing Mr. Rendell's plan to extend health insurance to those without it" by seeming "unconcerned about low-income people who are either unemployed or underemployed, who have 'pre-existing health conditions'" (Barnes, Pittsburgh Post-Gazette, 1/17).

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation© 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.