Pennsylvania House Democrats Pass Alternative to Cover All Pennsylvanians Plan

The Pennsylvania House on Wednesday voted 114-18 to give preliminary approval to a bill (SB 1137) that would expand the state's adultBasic program to residents with incomes up to 200% of the federal poverty level, the Pittsburgh Post-Gazette reports. The proposal -- crafted by House Democrats and called Pennsylvania Access to Basic Care -- is intended to serve as an alternative to Gov. Ed Rendell's (D) Cover All Pennsylvanians health care initiative, the Post-Gazette reports. The proposal "faces an uncertain future in the Republican-controlled Senate," according to the Post-Gazette.

House Democrats have estimated that the program would cost about $579.2 million in the first year, with $291.4 million coming from state funds. By the fifth year, the program would cost about $1.11 billion, with the state contributing $370.1 million (Fahy, Pittsburgh Post-Gazette, 3/13). Democratic lawmakers said the program would be funded in part by contributions from employers and individuals, and money from existing programs, in addition to the $500 million from the state's MCare malpractice coverage program (Kaiser Daily Health Policy Report, 3/12). However, the plan would require an additional $120 million in the first year, according to the Post-Gazette (Pittsburgh Post-Gazette, 3/13). Other potential funding sources include a cigarette tax increase, new cigar and smokeless tobacco taxes, and excess funds from legislative accounts.

Under the Democrats' proposal, individuals with annual incomes up to 200% of the poverty level would be eligible for subsidized coverage, with people contributing premiums of $50 per month. People with incomes greater than 200% of the poverty level would share the premium costs with their employers. Residents with incomes greater than 300% of the poverty level would have to show proof that they were unable to obtain coverage because of cost or pre-existing medical conditions.

The governor's plan would extend coverage to individuals with incomes up to 300% of the poverty level. Both plans would extend coverage to the 80,000 people on the adultBasic waiting list. The legislative proposal also would give grants to small businesses that provide health care to low-income workers, allow residents to open a health savings account and phase out MCare over a 10-year period (Kaiser Daily Health Policy Report, 3/12).