2006 Pa Legislative Issues Update

**NRSKarenRN, BSN, RN** · Feb 18, 2006

from hap:the hospital & healthsystem association of pennsylvania

act 44 - health care provider retention program

last updated: 2/27/2004

the budget package includes full restoration of the hospital state budget cuts for the community access fund, outpatient disproportionate share, rural access, and medical education; a two-year mcare abatement program for physicians funded by an increase in the cigarette tax; behavioral health funding; funding for the trauma stabilization act, which is contingent upon passage of the trauma stabilization act (h.b. 100) to be considered early in 2004; and additional funding for the healthchoices plans.

major budget restorations:

$85.7 million in state funds to cover hospital shortfalls from treatment of uninsured patients and to subsidize teaching hospitals and community health centers. the restoration is 100%.
$61 million in state funds for mental health services providers and drug and alcohol treatment programs.
$29.6 million in state funds that counties can use for a variety of purposes, including mental health services and drug and alcohol treatment.
$25 million to healthchoices plans to pay for medical patient care.
$12.5 million in state funds to trauma care centers to maintain certification.

mcare abatement:

the mcare abatement program for 2003 and 2004 will be funded through the 35-cent cigarette tax increase, with 25 cents directed towards mcare abatement ($181 million). details of the mcare abatement include:

general surgeons, neurosurgeons, obstetricians/gynecologists, orthopedic surgeons, family physicians who perform obstetrical services, emergency physicians at trauma centers, and nurse midwives will receive 100% abatement of mcare assessments. all other physicians will receive 50%.
physicians must apply to the insurance department to receive abatement.
physicians must agree to practice in the state for each year of abatement. this provision does not apply to medical residents or fellows in approved programs. we have received reports that there is some misunderstanding that the requirement is for two years. the principle in the new law is that a physician must continue to practice during the policy year in which the abatement is applicable. for example, a physician with a renewal date of january 1, 2004, must remain in practice in the state during 2004 to receive the abatement. a physician with a renewal date of april 1, 2004, must agree to remain in practice from april 2004-march 2005.
there is no means testing or requirement to become an ma provider or provide free care.
if a physician has paid the 2003 mcare assessment, the state will refund the appropriate amount.

http://www.haponline.org/legislative/agenda/issues/medical_liability/details.asp?id=gke8ddwf1fmb0byrg8hb

2005 update:

overview of pennsylvania's medical liability environment 2005

2005 fact sheet: pennsylvania medical liability environment

2006 election preview