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2009 Lobby Week AARP State Issues Review

 

 

 

Before the federal stimulus package was approved by the United States Congress Pennsylvania’s budget deficit for 2008/09 was estimated to approach $2 billion. Funding from the stimulus package should prevent the Commonwealth from facing furloughs of state employees or cuts in services before the fiscal year ends in June. But the gloomy economic forecast will impact virtually every issue AARP will be concerned about in the 2009/10 budget, which is currently being considered by the General Assembly. Health care issues, utility rates, and long-term care will be three issues of particular importance.

 

 

Although health care reform will be debated at the federal level, state health care reform will continue to be a leading issue in Pennsylvania in 2009. Governor Rendell has proposed the expansion of a program, Adult Basic, which currently provides health insurance to about 50,000 uninsured adults in Pennsylvania. The Governor’s proposal, funding for which relies on assistance from the federal government and savings from the way in which Medicaid purchases prescription drugs, would allow 50,000 additional Pennsylvanians to sign up for the program. Unfortunately, there are now 180,000 Pennsylvania on the waiting list for Adult Basic.

 

  

Senate Republicans have introduced legislation which takes a different approach to health care reform. Instead of offering proposals to expand health insurance coverage, these bills seek to make more free and low-cost health care treatment available to Pennsylvanians without health insurance. This proposal relies on the expansion of health care clinics and compensation for physicians who volunteer at these clinics to allow more Pennsylvanians to be treated for their health care needs.

 

 

 

Pennsylvania still lags behind most other states in using state funding for home and community based care programs instead of nursing home care. A program funded by lottery revenues, the OPTIONS program, has proven to be an innovative way to help older Pennsylvanians stay at home instead of being forced into institutional care. OPTIONS provides assistance to Pennsylvanians who are above the poverty level, unlike Medicaid, which requires recipients of long-term assistance to spend down their assets and receive little, if any, income. Right now, however, at least 4,000 Pennsylvanians are waiting to receive services from the OPTIONS program. Unfortunately, the funding for OPTIONS in the 2009/10 budget proposal remains mostly stagnant; despite the fact that it is projected the lottery will carry over more than $100 million in revenue with another $100 million being placed in reserve. Meanwhile, in the past three years at least $250 million of lottery revenues were used for Medicaid long-term funding instead of the OPTIONS program. 90% of Medicaid long-term spending goes to nursing home care, which means that lottery funding which could be used to help older Pennsylvanians stay at home is instead being used to pay for nursing home care. 

 

In addition to lottery-funded programs, a separate program that helps individuals to remain at home, the Family Caregivers Program would be greatly improved by legislation that has passed the House and is pending in the Senate. HB 245, introduced by Rep. Phyllis Mundy would not only result in increased benefits to family members caring for relatives, but also extend eligibility to off-site family members.

 

 

 

The pending expiration of rate caps on electricity for most Pennsylvanians could cause significant increases in electric bills in the next two years. Some areas of Pennsylvania have already experienced the expiration of rate caps. Electric bills in a portion of Pike County increased by more than 70% when their rate caps expired in 2006. Projections currently show that electric rates for many customers in Pennsylvania are likely to increase by at least 35% when rate caps expire either at the end of 2009 or 2010. Meanwhile, utility shutoffs have already increased dramatically as energy costs have risen and the procedures for utilities to shut off service have been loosened, leading to fears about many more shutoffs occurring should electricity rate caps expire. Legislation, HB 20, has been introduced in the House which would phase-in rate increases at no more than 20% per year. In the near future, the following proposals may be introduced:  the establishment of a Pennsylvania Power Authority and the extension of full rate caps.   

 

 

• BUDGET - In a difficult economic period Pennsylvania needs to address the needs of its citizens in a cost-effective, prudent manner

• HEALTH CARE REFORM - We have seen the number of Pennsylvanians without access to health care or health insurance increase dramatically. We should build on existing programs and expand access in a fiscally responsible manner by taking advantage of available federal funding

• LONG-TERM CARE - Our long-term living system is too dependent on the most expensive form of long-term care, nursing homes. We must encourage more home and community based care not only because it’s less expensive but because it is what people really want. We should use our lottery revenues to help to further this goal.

• UTILITIES - Neither Pennsylvania consumers nor Pennsylvania businesses can afford dramatic electric rate increases in this economic climate. We must take steps to reduce or eliminate these increases in the short term, in order to give policies designed to make electricity more affordable over the long term a chance to work.

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