|
Senator Folmer's "Healthy Pennsylvania"
|
Health care is a major issue in Pennsylvania and across America: it is
expensive; quality is not what is should be; and too few people have access to
care despite the fact 2.1 Million people are presently in
government-run/government subsidized programs.
There are many proposals to address the concerns
surrounding health care, and possible solutions range from a single-payer,
government-run system to managed care.
Senator Folmer proposes the tried-and-true solution of
empowering consumer-driven market initiatives, as outlined in his "Healthy
Pennsylvania" proposal. While the individual effects of these bills might vary,
their collective impact – like fingers of a hand clenched in a fist – would
impact and reduce health care costs and enhance the quality and access to care.
|
|
The Elements of Healthy PA
|
Sunset Health Care Mandates
Senate Bills 214 and 216
Pennsylvania presently has 40 mandates that must be part of
health insurance products offered in the state. Some mandates are said to reduce
health care costs while many are believed to increase costs. With changes in
medical technology and medical delivery, all current (and future) mandates
should be systematically analyzed for appropriateness, value, and affordability.
If each existing mandate is increasing costs by just 1
percent, consumers are paying $5.1 billion annually in extra costs – yet they
have no say in whether they believe these costs are warranted. Consumers should
be allowed to purchase this coverage through optional riders.
The first step in giving consumers more choices is
requiring that each of the current insurance mandates be periodically justified.
Healthy PA would do this by chronologically staggering the sun setting of all
current mandates, as well as sun setting all future mandates five years after
their enactment. Prior to the re-authorization of a mandate by the General
Assembly, the PA Health Care Cost Containment Council would have to issue a
cost-benefit analysis to the General Assembly.
Promote Health Savings Accounts (HSAs)
Senate Bills 212 and 213
Health Savings Accounts (HSAs) were created by federal law
in 2003 as privately owned savings accounts funded with pre-tax dollars. HSAs
are similar to 401(k) retirement plans, but rather than allowing people to save
for future retirement expenses, they allow people to save for future medical
expenses.
HSAs are popular with the previously uninsured.
Government-subsidized health insurance programs tend to attract those who are
already insured. Because HSAs are bound to "qualified high-deductible" health
plans, they cost less and reduce spending.
Establish Tax Deductions/Credits for Those
Who Pay for
Their Own Health Care
Senate Bill 217
With the ever-increasing costs of
health care, more and more people (especially retired
people) are covering all or a portion of their health costs.
Healthy PA would extend tax deductions and tax credits to
these individuals:
-
Health Insurance Premium Deduction:
authorize 100% of the amount paid for non-reimbursable,
qualified health insurance premiums to be deducted from a
taxpayer's Pennsylvania taxable income
-
Health Insurance Tax Credit: allow self-employed
taxpayers (who are otherwise ineligible for the federal
income health insurance tax deduction under federal law) to
receive a tax credit
|
Increase Competition Among Health Insurance Carriers
Senate Bill 216
The current lack of competition among Pennsylvania health care
insurers has hurt consumers because they have few choices on issues of quality
and cost. Healthy PA would increase competition among health care
insurers by allowing out-of-state insurers to offer their products in
Pennsylvania. As many of these products do not include existing Pennsylvania
health care mandates, consumers will be allowed to choose whether they want
coverage with or without current Pennsylvania mandates.
Establish a State High Risk Pool
Senate Bill 218
Risk pools can help fill gaps in insurance coverage by
providing coverage for those who are denied health insurance for medical
reasons. Risk pools are state-created, nonprofit associations.
Many other states have some version of a high risk pool,
which do not allow public funds to pay premiums. Healthy PA would apply
this ban to Pennsylvania law. Additionally, Healthy PA would disallow
Medicare-eligible people and require that premium reductions be based upon 100%
of the federal poverty level.
As in the auto insurance market, such a pool would also
ensure the ability of all insurers to appropriately match premiums to the cost
of the underlying risk in all products sold in the Pennsylvania marketplace.
Phase Out MCARE
Senate Bill 219
The General Assembly established the Medical Care
Availability & Reduction of Error (MCARE) Fund to pay for catastrophic medical
malpractice costs. While meaningful tort reform would help to alleviate medical
malpractice claims, the MCARE fund has served to bridge the liability gap.
Healthy PA
would use surplus MCARE funds to pay down current liabilities and ease the costs
of transition from MCARE to the private insurance market.
|