HAP and the Pennsylvania Medical Society were briefed by the Governor’s staff about the new cost estimates for the subsidized health insurance program for the uninsured and the retirement of the Mcare Fund. The estimates were based on the House plan, which establishes the Pennsylvania Access to Basic Care program (PA ABC) and a plan to retire the Mcare Fund. Administration officials outlined a plan that would, after five years, cover 272,589 people and cost $1.1 billion. HAP supports unlinking Mcare abatement to enactment of a complex health insurance coverage plan, as this could further jeopardize access to physician care as abatement is delayed. HAP also supports improving health coverage and has conveyed to the administration the hospital community’s position about how best to achieve this goal.

The U.S. House of Representatives delayed action on an Iraq supplemental spending measure, in which Democratic leaders are expected to offer a domestic spending amendment that includes the Protecting the Medicaid Safety Net Act of 2008, H.R. 5613. The legislation will place a moratorium on seven Centers for Medicare & Medicaid Services regulations that would cut or eliminate Medicaid federal funding streams to hospitals and others. If action is not taken by May 25, Pennsylvania could lose more than $66 million in federal graduate medical education payments during each of the next two years. HAP is encouraging its members to contact their representative to urge their support for the domestic spending amendment.

The American Hospital Association (AHA) sent a letter to the Antitrust Division of the U.S. Department of Justice (DOJ), calling for them to “investigate thoroughly and block if appropriate” the proposed merger of Highmark and Independence Blue Cross (IBC) in Pennsylvania. The federal government declined last year to take any action on the merger; however, the insurers must file with DOJ again this month, because the consolidation has not been completed. HAP also will be urging DOJ to avail itself of this second opportunity to thoroughly review the combination of the state’s two largest health insurance plans.