Senator White Issues Statement on House Bill 1

Funding unsustainable, would tax those currently insured

Senator Don White, chairman of the Senate Banking and Insurance Committee today (June 29) issued the following statement on House Bill 1.

"No matter how admirable the intent of HB 1, the bottom line is the funding stream proposed by its authors is not only unsustainable but also unachievable, particularly considering the economic crisis that has devastated Pennsylvania and blown a $3.2 billion hole in our state budget.

"This proposal is dependent on hundreds of millions in one-time funding and raids the Health Care Provider Retention Account, the Tobacco Settlement Account and the Community Health Reinvestment Account without establishing a sustainable funding stream to maintain the program into the future. In addition, there is an expectation that the Commonwealth will be able to secure the appropriate and necessary waivers from the federal government. Any approval of a waiver is based on pure speculation by the Rendell administration and House Democrats.

"We must also be cognizant of the ongoing debate in Washington regarding a federal universal health care proposal. That debate should serve as a caution sign for all states in regard to potential health care initiatives which could well be invalidated by a new federal program in a matter of a few short months.

"It is also ironic that supporters of HB 1 want to place much of the burden for funding this massive expansion of an entitlement program on the backs of individuals, families and employers who pay for their own health insurance coverage. By imposing a new tax on each and every person insured by a Blue Cross/Blue Shield product in Pennsylvania, HB 1 will make private insurance even less affordable, driving even more individuals into the very program it tries to create.

"The Senate is committed to making health care coverage more accessible and affordable in Pennsylvania, especially in these difficult economic times. And, we have made good progress with the bi-partisan passage of bills that provide for continuation of coverage for individuals aged 30 and under; the creation of a Mini-COBRA program; the withholding of payment to providers in the event of medical errors; and, the re-establishment of the Pennsylvania Health Care Cost Containment Council.

"There is a solid commitment, especially in the Senate, to improving health care services in Pennsylvania. At this time, however, I don't see sufficient support for an unsustainable expansion of the entitlement program embodied in HB 1 - particularly at the expense of taxpayers. Pennsylvania is staring at a revenue deficit of more than $3.2 billion, and simply cannot afford to increase spending without a tangible and sustainable way to pay for it now and into the future."

Contact:

Joe Pittman
(717) 787-8724