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Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20170&cosponId=24138
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House of Representatives
Session of 2017 - 2018 Regular Session

MEMORANDUM

Posted: June 13, 2017 11:35 AM
From: Representative Jason Ortitay
To: All House members
Subject: Healthy Pennsylvania Medicaid Reform
 
As the Federal Government continues the contentious debate over healthcare reform, many states are left with the question of how to handle growing costs while improving healthcare delivery. Medicaid Expansion, as explained in the governor’s executive budget, will cost taxpayers an additional $100 million this year. Despite expanded enrollment and higher state spending on Medicaid, the delivery of healthcare has not significantly improved in the Commonwealth.

In order to reform the Medicaid program, reduce costs to taxpayers and improve healthcare delivery, I plan to introduce legislation which is modeled after the bipartisan successes of Healthy Indiana. Originally, passed under Governor Mitch Daniels prior to Obamacare’s passage, Healthy Indiana gave Medicaid enrollees greater choice by giving them their own Health Savings Account (HSA).

Based on their level of income compared to the federal poverty level, individuals would be required to contribute a small percentage of their income into the account. The state will ensure the enrollee has $1,100 in the account by contributing the difference between the enrollee’s contribution and $1,100. Under the law, and my legislation, an employer can contribute 50% of the enrollee’s required contribution. Additionally, above the state’s required contribution, the Commonwealth will provide monetary deposits of up to $500 in order to incentivize the use of preventive care.

Similar to Healthy Indiana, this legislation would also require enrollees to pay for emergency services if it was used for a non-emergency situation. This would reduce the cost of Medicaid to taxpayers by requiring enrollees to pay for over-utilization of services. However, enrollees do not have to pay for emergency services if a reasonable individual would believe a sudden condition would severely impair or poses a threat to their health.

These reforms improved healthcare delivery in Indiana by giving enrollees choice in their healthcare and incentivizing preventive care. At the same time, by reducing over-utilization of emergency services and incentivizing preventative care, the state reduced healthcare costs for its Medicaid program. As a result of this success, the Obama Administration allowed Indiana to keep the program as an accepted Medicaid Waiver under then Governor Pence.

Please join me in c-sponsoring this legislation to bring a patient centered approach to Medicaid which saves taxpayer money.



Introduced as HB1638