THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE RESOLUTION

INTRODUCED BY McILHINNEY, FONTANA, BROWNE, ERICKSON, ALLOWAY, EARLL, MENSCH, M. WHITE AND HUGHES, MARCH 14, 2011

REFERRED TO PUBLIC HEALTH AND WELFARE, MARCH 14, 2011  

A RESOLUTION

Directing the Legislative Budget and Finance Committee to study

the Pennsylvania Medicaid Estate Recovery Program to

determine how much is recovered through the program and if

further changes to the system are needed in order to return

funding to the Commonwealth.

WHEREAS, This Commonwealth is faced with a severe economic

downturn, a State budget deficit estimated at between $1 billion

and $2 billion, double-digit rate increases in health care

costs, a growing number of people who need long-term care and an

escalation in Medicaid costs; and

WHEREAS, The demand for long-term services continues to grow

as this Commonwealth's population ages; and

WHEREAS, Medicaid is a major payer for long-term care

facilities; and

WHEREAS, Federal law requires states to seek recovery for

payments made for nursing home facilities, home and community-

based services and their related hospital and prescription drug

services; and

WHEREAS, Federal law allows considerable discretion in the

design of estate recovery programs, allowing states to decide

such parameters as the targeted population, scope of recovery,

minimum estate and claim thresholds, exemptions, hardship waiver

criteria and operations; and

WHEREAS, Faced with burgeoning costs and pending budget cuts,

it is prudent to ensure that this Commonwealth is doing all it

can to recover the taxpayer's money invested in Medicaid; and

WHEREAS, Budget quick fixes and one-time savings will be more

difficult to identify in order to maintain services to this

Commonwealth's neediest residents; and

WHEREAS, Estate recovery programs provides a cost-effective

way to offset State costs; therefore be it

RESOLVED, That the Senate direct the Legislative Budget and

Finance Committee to study Pennsylvania's Medicaid Estate

Recovery Program to determine if further changes to the program

can be implemented to maximize estate recovery, to compare

Pennsylvania's rate of return to other states, to ensure

compliance with Federal law, to make recommendations on changes

to recover additional moneys and to report on how Pennsylvania

currently uses money collected through the Medicaid Estate

Recovery Program; and be it further

RESOLVED, That the Legislative Budget and Finance Committee

issue a report of its findings and recommendations to the Senate

no later than July 1, 2011.