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Food Banks
In light of the current economic situation and the predictions of future problems due to rising food and utility costs, layoffs and underemployment, the food banks in Pennsylvania are seeing an increased need for their services. Additionally, they are also facing a decline in food donations, an increase in the amount of food that they have to purchase, rising food costs, and a decreased inventory. Two existing programs aid food banks – the State Food Purchase Program is budgeted for $18 million and the Farmers’ Market Food Coupons Program is budgeted at $2.226 million. Both allocations are at the same level as last year, causing additional problems as hunger and food insecurity continues to increase – putting more demand on food pantries.
Children’s Health Insurance
In his February budget address, the Governor proposed increasing funding for the Children’s Health Insurance Program (CHIP) to increase coverage for another 15,000 children. The Governor believed this necessary to address children’s health care during a time when parents could be losing jobs or struggling to pay for insurance. In their budget, the Senate Republican’s kept the budget figure at $86.9 million – the same level it had been at during the current fiscal year. The Governor’s Office has indicated that if those figures stand, enrollment in CHIP would have to be decreased by 9,588 children and the state would also be unable to draw down $16.4 million in federal funds
Medical Assistance
Although the elderly and the people with disabilities do not make up the majority of those receiving Medical Assistance, they do account for an overwhelming percentage of the money that we spend on medical care. Those are rising costs that the state is, for the most part, mandated to pay. For instance, the state has to replace over $500 million in federal and other funding that ended in 2008-09 (the Medicaid MCO Assessment, Intergovernmental Transfers, etc.)
The elderly have 285,633 Medicaid enrollees at a cost of $4,624,937. The disabled have 435,375 enrollees at a cost of $5,287,889. Families have 1,188,349 enrollees at a cost of $3,511,610, while adults without children have 113,133 enrollees at a cost of $893,859.
A pharmacy carve-out is being proposed that would remove pharmacy services from existing managed care organizations and place it under the Department of Public Welfare. This proposal would allow the state to qualify for pharmacy discounts and refunds that the individual organizations cannot. Although a federal “fix” is being discussed, it would not occur until the federal budget is passed later this fall. The administration has indicated that the savings from such a move would allow the Department to avoid major cuts including cutting 60,000 children and adults from medical assistance, cutting child care for over 45,000 children, eliminating home and community based services to nearly 15,000 seniors, and major rate cuts for nursing homes, mental health/mental retardation and child welfare providers.
One in 10 Pennsylvanians receive food stamps (including the elderly and disabled) and two million children and adults rely on Medical Assistance for health care
Hospitals
The Governor’s budget eliminates medical assistance for hospital-based burn centers ($5.17 million); critical access hospitals ($4.888 million) and acute care hospitals ($23.03 million). The Senate Republican budget goes even further, eliminating funding for obstetric & neonatal services ($5 million) and trauma Centers ($12.337 million). Overall, the Governor proposed reducing Medicaid funding to hospitals by $77.9 million - the Senate Republican version would make cuts of $279.5 million
Hospitals already receive 20 percent less in reimbursement monies than the cost of care and Senate Bill 850 would cause the state’s 180 acute care hospitals to lay off approximately 6,700 workers. The Hospital & Healthcare Association has indicated that the proposal cutting $279.5 million in combined funding is disastrous and has stated that many hospitals are struggling already and face closure if some changes are not made.
The Safety-Net Association of PA indicates that 86% of the cuts made in medical assistance would impact those hospitals that provide care for the highest proportion of low-income and uninsured Pennsylvanians. Hospitals would lay off employees, cut programs and reduce services, delay renovations and improvements, and defer the replacement of work and outdated equipment and the purchase of new, more modern equipment and technology.
Health
The Governor’s proposed budget has removed funding for the Regional Cancer Institutes ($1.228 million) – one of which is in Pittsburgh; Research Programs ($17.8 million); and funding for the Children’s Hospital of Pittsburgh ($445,000). The Senate Republican’s proposal goes further, eliminating programs for organ donation ($103,000); diabetes programs ($348,000); arthritis outreach & education ($315,000); Lupus ($236,000); Epilepsy support services ($491,000); and the Children’s Institute of Pittsburgh ($861,000).
The Senate Republican proposal would also reduce funding for the breast and cervical cancer screening program, AIDS programs, Clean Indoor Air enforcement and would reduce the cancer program funding by 50 percent. It would also eliminate Pennsylvania’s innovative program to detect, report and prevent health care acquired infections. Finally, it also eliminates the
Office of Health Care Reform at a cost of $1.584 million.
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