Senator Don White, Chairman of the Senate Banking and Insurance
Committee, issued the following statement in response to the Governor's plan to
raid the state's MCARE fund to pay for his universal health care proposal.
"It is very disappointing the Governor continues to push his
payroll tax on employers. It is an unacceptable and likely an unconstitutional
tax. Even members of his own party have made it clear that the payroll tax was
a 'non-starter' in the past and nothing presented today should change that.
"Equally disturbing is the Governor's effort to target the
MCARE fund as a revenue source for the universal health care proposal. The
approximately $400 million surplus in the fund is obviously attractive, but
raiding MCARE to pay for the universal health care plan raises several red
flags.
"The MCARE surplus is the product of imposing excess health
care costs which have ultimately been passed on to employers and individuals
though increased health insurance premium costs. That $400 million is the amount
that Pennsylvania's health care providers, our doctors and hospitals have been
over assessed in paying for their state-mandated medical malpractice insurance
coverage.
"The Administration uses the term 'fair share' when talking
about taxing employers to pay for the universal health care plan, but the true
measure of fairness here would be to reduce the premium costs paid by the men,
women and institutions that are on the front lines in providing health care
services to all Pennsylvanians.
"It is duplicitous to even consider funding a long-term major
entitlement program with cigarette and tobacco taxes when this is an
increasingly unstable source of revenue.
"Finally, I am utterly disgusted and extremely disappointed
the Administration is again using strong-arm tactics to push its pet programs.
Delaying the reauthorization of the MCARE program means the Administration is
basically holding doctors and hospitals hostage in an attempt to hijack the
fund. If this proposal is so great, then why is this move necessary?
"The Administration has decided to raid the MCARE fund and
push a tax on employers even though those efforts place an unnecessary and
intolerable burden on health care providers and jeopardize the health and well
being of all Pennsylvanians.
"Senate Bill 1137, despite
the Governor's claims, establishes basic, common sense restrictions on how
dollars not needed for the abatement can be used to fund already authorized
health care cost containment initiatives and is not in any way an impetus to
creating a massive $1.5 billion entitlement program.
"Governor Rendell would do
well to heed his own advice: 'We should consider projects, plans and
initiatives on their own merits, not trade them off, you do this and we'll do
this. That leads to bad legislation. We should consider things on their
merits'." (Gov. Ed Rendell, Capitolwire.com, Aug. 23, 2007)
