Pennsylvania Office of the Governor News

DPW Secretary Highlights Gains for Children, Families in 2008-2009 Budget

HARRISBURG, Pa., July 4 PRNewswire — Secretary of Public Welfare Estelle B. Richman today said the Governor's newly enacted 2008-09 budget will meet the critical needs of Pennsylvania's most vulnerable citizens, as well as introduce strong new protections for children with autism spectrum disorder.

"The country's current economic climate, along with dwindling financial support from the federal government, have made this year especially difficult," said Richman. "Despite these challenges, while we have been able to maintain the critical safety net for individuals and families in need, in the coming year we will renew our efforts to develop innovative ways to serve the people of Pennsylvania."

One major victory is that children with autism spectrum disorder and their families will receive unprecedented new protections to receive the services and treatment they need. Working with Speaker Dennis O'Brien, the department worked hard to pass legislation that will assure that private health insurers shoulder their fair share of covering autism treatments up to $36,000 per year. This groundbreaking legislation will improve access to services for thousands of children and their families living with autism by building a stronger provider network, and is considered one of the best laws in the country.

Other highlights of the spending plan include:

— Raising reimbursement rates by $21.7 million ($10.2 million state funds) to improve access to critical Medical Assistance services, including home health care services for children, dental care, and primary care physicians;

— Serving an additional 2,600 children in the next year by expanding investments in high quality pre-kindergarten through the Pennsylvania Pre-K Counts program;

— Doubling the funding for autism services to adults from $23.4 million to $46.4 million in state and federal funds;

— Serving an additional 2,930 children with physical and developmental disabilities with Early Intervention services; and

— Serving an additional 2,100 older Pennsylvanians and an additional 1,300 people with disabilities by expanding the availability of community services.

The 2008-09 budget also provides a cost-of-living increase for many providers, including community mental health and mental retardation, community services for the elderly and persons with disability, and nursing homes. The goal of this increase is to help providers offset rising food, energy and other costs.

"The slowing economy and reduced support from Washington made this a very difficult budget year. While I was disappointed that we were not able to deliver 100 percent of the proposals in my original budget, this budget has significant wins for Pennsylvania children, families and others in need of assistance," said Governor Rendell.

"Because of the smart way we manage our programs, we were able to deliver funding increases while other states across the nation had to resort to major cuts," he said. "New Jersey had to close a $3 billion budget gap and did so in part by reducing hospitals and nursing homes funding by over $150 million. Florida was facing an even larger deficit, and cut payments to hospitals, nursing homes and managed care by over $500 million. California is still deadlocked on its budget, in part because Governor Schwarzenegger has proposed more than $1 billion in cuts to Medicaid and social service programs."

The impact of the cuts in these others states show the need for Pennsylvania to renew its efforts to hold down costs. The department believes it can save Pennsylvania taxpayers $100 million a year by paying lower prices on prescription drugs for children and families who receive health care through Medical Assistance. Pennsylvania can save, on average, 30 percent over what managed care companies currently spend on pharmaceuticals.

While efforts to realize these savings by making the department the single buyer came up short this year, slower economic growth will only intensify the need for savings. The department is evaluating options for making sure that taxpayers get the best possible prices and the highest possible savings.

The Governor's budget renews Pennsylvania's commitment to maintain eligibility for those applying for and receiving services through Medical Assistance, ensures children do not experience any reduction in services, while continuing to provide for the growing number of vulnerable individuals and families in need.

Graphics, budget highlights and additional details about the 2008-09 state budget are online at www.budget.state.pa.us .

CONTACT: Stacey Witalec

(717) 787-4592

SOURCE Pennsylvania Office of the Governor

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