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House of Representatives
Session of 2013 - 2014 Regular Session


Posted: May 29, 2013 02:25 PM
From: Representative Gene DiGirolamo
To: All House members
Subject: Medicaid Expansion Legislation

In the near future, I plan to introduce legislation amending the Public Welfare Code to allow Pennsylvania to participate in the Federal Medicaid Expansion program.

According to the Independent Fiscal Office, the Medicaid Expansion will bring $17 to $19 billion in new federal dollars to Pennsylvania over five years, giving us the opportunity to provide health care coverage for over 400,000 Pennsylvania citizens.

Most of these citizens will be low income, working people with jobs that do not provide health care coverage and who are not eligible for traditional Medicaid.

Individuals with incomes of about $15,000 and families of four with incomes of about $30,000 will be eligible for Medicaid Expansion. Under the Expansion, the Federal government will pay for 100% of the cost of new enrollees for the first three years – 2014, 2015 and 2016. After that, Federal funds reduce gradually, until they remain at 90% in 2020 and beyond.

A Research Report by Rand Corporation projects that through the Medicaid Expansion, Pennsylvania will gain 35,000 to 39,000 tax generating new jobs.

My legislation includes protections for Pennsylvania including the ability to drop the program if the Federal commitment to reimbursement is not maintained. Under the language, Pennsylvania could also end the program if our state’s Gross Receipts Tax is disapproved by the Federal government.

In addition, the Department of Public Welfare will be able to institute cost offsetting mechanisms in the fourth year such as: premiums, deductibles and copayments.

Please join me in co-sponsorship of this landmark legislation. With your help, we can provide needed health care coverage to Pennsylvania’s low income wage earners while at the same time enhancing the economic outlook for the Commonwealth.

Introduced as HB1492