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Pennsylvania Governor Rendell Makes Unprecedented Commitment to PA Children; Extends Health Care to Thousands of Uninsured Through 'Cover All Kids'

Posted on: Wednesday, 8 February 2006, 12:01 CST

HARRISBURG, Pa., Feb. 8 /PRNewswire/ -- In the face of dwindling federal support and rising health care costs, Governor Edward G. Rendell today proposed an extraordinary expansion of programs to help more than 2 million Pennsylvanians pay for health care, early childhood and in-home services in 2006-07.

The Governor's unprecedented commitment includes an $828 million increase for services to children and young adults, including health insurance, education and training.

"In the face of a continuing brutal trend by the federal government to reduce its support for programs to help the needy, we have become their lifeline against the rising tide of poverty, illness and disease that threatens to overwhelm them," the Governor said in his budget address to a joint session of the General Assembly.

The Governor added that for the first time in the commonwealth's history the budget also must include nearly $350 million to pay the federal government for the federal Medicare Part D program.

"Washington has the audacity to charge us for a major new initiative that they enacted, into which we had no input, and which they will manage. The federal government is balancing its budget by shifting its costs onto state budgets."

Governor Rendell said the newest state lifeline, called "Cover All Kids," is designed to extend health insurance to thousands of uninsured children -- those whose parents earn too much to qualify for the state's Children's Health Insurance Program, or CHIP, but who can't afford to purchase insurance for their children.

"Cover All Kids" will guarantee affordable, comprehensive health care coverage for visits to doctors, hospitalization, prescription drugs, vision, home health care, and mental health and substance abuse services.

"How we care for our children speaks volumes about our society. We must see to it that all children have access to health care when they need it, and `Cover All Kids' is our pledge to make sure that they do," Governor Rendell said. "'Cover All Kids' is a critical part of the overall effort to reduce the number of uninsured children and adults statewide."

"Cover All Kids" will require a $4.4 million investment in state funds and $10.2 million in federal funds for its first year of operation. Once the federal government approves the program, "Cover All Kids" will take 15,000 kids off the state's uninsured rolls in 2006-07, with additional children gaining coverage in future years.

In addition to "Cover All Kids," Governor Rendell proposed to: -- Use $8 million from the tobacco settlement and $8.7 million from the community health reinvestment fund to provide health care coverage to more than 8,500 new low-income working adults through Adult Basic; -- Spend an additional $5.8 million to give 12,000 more children the advantage of early childhood learning services through the expansion of Keystone STARS; -- Pay $28.3 million to provide child care services to 15,000 additional children in families receiving Temporary Assistance to Needy Families, or TANF, and in former TANF families; -- Include an additional $16 million to provide early intervention services for nearly 5,200 more kids; -- Expand prevention and in-home services by $6.3 million so more children can be adopted and financial aid is available to those who have already been taken in by a new family; -- Provide more services to people with mental retardation with a $16.8 million increase for home- and community-based services, plus a pilot program for young adults with mental retardation; and -- Include funding so 2,800 additional seniors will be cared for in their homes instead of in nursing homes.

Just as important as the proposals to increase health and human services expenditures in 2006-07 is Governor Rendell's commitment to continue finding ways to save money.

The improvements made last year alone to Pennsylvania's Medical Assistance program have saved more than $321 million. Another $126 million will be saved in the next fiscal year through selective contracting for some Medical Assistance services ($16.8 million in savings); improving the use of hospital resources by better determining a patient's appropriate level of care ($13 million); further crackdowns on fraud, abuse and waste ($6.5 million); and updating hospital supplemental payments to more accurately reflect the resources needed to provide care for Medical Assistance patients ($68.8 million).

The Rendell Administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit his Web site at: http://www.governor.state.pa.us/.

CONTACT: Kate Philips, Pennsylvania Office of the Governor, +1-717-783-1116.

Pennsylvania Office of the Governor

CONTACT: Kate Philips, Pennsylvania Office of the Governor,+1-717-783-1116

Web site: http://www.state.pa.us/http://www.governor.state.pa.us/

Source: PRNewswire

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