How the Budget Spending Plan Affects Health Care

Here’s a look at how the budget spending plan, which was signed into law July 6, will affect programs and initiatives that are important to physicians and patients. 

Insurance 

State-run insurance programs fare pretty well in the spending plan, especially the state Children’s Health Insurance Program, which will see a $16.9 million increase for a total allocation of $300.9 million.  

A new state-run high-risk insurance pool will receive about $41 million in federal funding. 

Executive offices 

Many of the executive offices created by Gov. Rendell’s Prescription for Pennsylvania reform package will see funding cuts.  

Chronic care management will see about a $56,000 cut, while health information exchange and health-care-associated infections would lose out on about $110,000 each. Health information technology will get a $1.1 million increase in expected federal funds from the economic stimulus package. 

Medicaid 

Medicaid outpatient funding will lose out on about $127 million under the spending plan, although those cuts are expected to be offset by federal funding. Medicaid inpatient funding will go up about $273 million, and capitation will rise about $1.3 billion. 

Other 

The Pennsylvania Health Care Cost Containment Council will see a $134,000 drop in funding, while the Independent Regulatory Review Commission will lose about $17,000.

For more on the budget, read this fact sheet prepared by Gov. Ed Rendell's office.

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Comments: 1


It should be interesting to review the numbers a few years from now. The amount of state risk pool money provided by the federal government is hardly enough to accomplish the task it sets out to do. Each state, including Pennsylvania will have to make up the difference, and of course ultimately...the taxpayers. Ed Harris pahealthinsurancecoverage.com

Pa Health at 7/8/2010 9:16:20 AM

Last Updated: 7/8/2010
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