THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE RESOLUTION

INTRODUCED BY DeLUCA, BARBIN, BOYD, CASORIO, D. COSTA, FABRIZIO, HARKINS, KILLION, MATZIE, READSHAW, M. SMITH AND YUDICHAK, JUNE 5, 2009

REFERRED TO COMMITTEE ON INSURANCE, JUNE 5, 2009  

A RESOLUTION

Memorializing the President and the Congress of the United

States to extend the time frame for assessment of Medicaid

managed care organizations.

WHEREAS, The Medicaid Program in Pennsylvania provides health

care coverage to more than two million senior citizens, persons

with disabilities, children, pregnant women and low-income

individuals, with funding provided jointly by the Federal

Government and the Commonwealth; and

WHEREAS, Consistent with Federal law, the Commonwealth of

Pennsylvania and several other states raised a portion of their

share of Medicaid expenditures through assessments on hospitals,

nursing homes, Medicaid managed care organizations (MMCOs) and

other health care providers; and

WHEREAS, The revenues received through these provider

assessments generate State funds that are matched with Federal

dollars and used by the Commonwealth of Pennsylvania to support

its Medicaid program; and

WHEREAS, As part of the Deficit Reduction Act of 2005,

Congress changed Federal law to limit the ability of the

Commonwealth of Pennsylvania and other states to impose provider

assessments to support their Medicaid programs so that effective

October 1, 2009, states may no longer impose existing provider

assessments solely on MMCOs; and

WHEREAS, In order to continue their assessments and to use

the revenues obtained through the assessments to secure Federal

matching funds, states must extend their MMCO assessments to new

payors and specifically to all managed care organizations; and

WHEREAS, This change in Federal law has produced a gap of at

least $200,000,000 in the Commonwealth of Pennsylvania's Medical

Assistance budget and threatens Pennsylvania's ability to fund

programs for seniors, persons with disabilities, children,

pregnant women and low-income citizens; and

WHEREAS, With the weakened state of the national economy,

more and more individuals are in need of the services provided

by state governments; and

WHEREAS, The Commonwealth of Pennsylvania, like many other

states, is undergoing difficult budgetary times due to the

economy, and the change in Federal law has escalated existing

budgetary problems brought about by the economy; and

WHEREAS, Delay in implementing the October 1 date will have

little impact on the overall Federal budget and will allow the

national economy to heal with a concomitant healing of state

budgets; therefore be it

RESOLVED, That the House of Representatives of the

Commonwealth of Pennsylvania memorialize the President and the

Congress of the United States to take all necessary action, and

if necessary pass legislation that will delay implementation of

the October 1 deadline of the Deficit Reduction Act of 2005, and

thereby give Pennsylvania and other states additional time in

which to enact legislation that will effectively comply with the

October 1 deadline at a later date; and be it further

RESOLVED, That copies of this resolution be transmitted to

the President, the presiding officers of each house of Congress

and to each member of Congress from Pennsylvania.