Philadelphia Inquirer Editorial Suggests Raising Tax Revenue To Offset Health Care Cuts Proposed by Governor

Pennsylvania lawmakers need to boost state revenues in order to offset Gov. Mark Schweiker's (R) budget plan, which would cut funds for health care coverage to balance the state's budget, a Philadelphia Inquirer editorial states (Philadelphia Inquirer, 5/29). Earlier this month, state officials said that revenue would fall $1.2 billion short of projections by June 30, the end of the fiscal year (York Daily Record, 5/8). In response, Schweiker has delayed until July 1 the scheduled launch of adultBasic, a program that would provide basic health coverage to low-income adults, and has reduced the program's enrollment cap from 60,000 to 40,000 (Philadelphia Inquirer, 5/29). Last August, officials said they hoped to launch enrollment in February 2002 (Kaiser Daily Health Policy Report, 8/22/01). The program is open to uninsured residents ages 19 to 64 who have lived in Pennsylvania for at least 90 days and have annual incomes up to 200% of the federal poverty level, or $17,720 for an individual and $23,880 for a couple. Participants would contribute some copayments and a $30 monthly premium to receive coverage for physician, hospital and emergency services (Kaiser Daily Health Policy Report, 4/25). Health advocates are "rightfully grumpy" about Schweiker's budget proposal, the Inquirer editorial says, noting that the governor's plan to use tobacco settlement funds to cover the budget gap also has "folks feeling cranky." Schweiker had pledged to use "every penny" from the state's share of the national tobacco settlement on health care programs, and using that money for other budget needs certainly would impact the "health of the neediest Pennsylvanians," the editorial adds. The editorial suggests that lawmakers increase the state's revenue by "boost[ing]" the tax on tobacco products, concluding that legislators will need to "get creative to keep health care for the needy at the top of the state's priorities" and meet budget requirements (Philadelphia Inquirer, 5/29).