PAMED Sends Letter to Auditor General Regarding Access to Care

Pennsylvania Auditor General Jack Wagner called on Gov. Tom Corbett and the General Assembly to restore the tobacco settlement funds to their original earmarked purpose of funding public health programs. The tobacco settlement monies are paid to the states annually by the tobacco companies to settle a lawsuit regarding increased health care costs incurred by the states due to smoking related illnesses.  

In an effort to give the public a voice, General Wagner has been holding public hearings across the state giving people the opportunity to testify about the use of tobacco settlement dollars. On May 6, 2011, the Pennsylvania Medical Society sent a letter to General Wagner sharing its concerns about access to care and reiterating its commitment to the health and well being of all Pennsylvania citizens.

Gov. Corbett’s proposal to use tobacco settlement fund money to stimulate economic development is facing significant criticism.

A class action lawsuit was filed in March by Pennsylvanians who were covered by adultBasic until the program ended Feb. 28. The 75 former adultBasic enrollees filed the lawsuit in Commonwealth Court asking the court to require the state to reinstate the program’s funding with the hundreds of millions of dollars in the tobacco settlement fund. Twenty-two Democratic state lawmakers also filed an amicus brief supporting the plaintiffs.

The adultBasic program provided health insurance to approximately 41,000 Pennsylvanians who could not afford other coverage, with an additional 500,000 on the program’s waiting list.

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Comments: 2


While we certainly agree with you about the state’s improper raid of cigarette tax revenues that had been set aside to pay for Mcare abatements, this story actually relates to a separate pot of money that is paid to the states annually by the tobacco companies to settle a lawsuit regarding increased health care costs incurred by the states due to smoking related illnesses. It can be confusing, since “tobacco settlement money” and “tobacco tax money” sound like the same thing, but they’re very different creatures. One is a tax on cigarettes, while the other is a lawsuit settlement payout.

PAMED at 5/16/2011 11:31:44 AM


the initial tobacco tax was allocated to support physician retention in this state by leaving the burden of the excessive Cat fund on practicing physicians. We have a difficult time in this state retaining physicians in rural locations. Shortages of orthopedic surgeons, urologists, and general surgeons are severe in these areas. This money was taken illegally from this purpose and used to buy votes to pass a budget proposal under our previous governor. Also unfair is the situation where my individual practicing physicians, such as myself, pay the same amount to the CAT fund as the whole Geisinger physician group. I would appreciate the reissue of these funds for the initial purpose of relieving the burden of practicing physicians and to retain and hopefully recruit new physicians into rural areas. Thank you, Anthony Catalano

Anthony Catalano at 5/12/2011 9:26:48 PM

Last Updated: 5/13/2011
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