Dear  

The House and Senate appropriations committees have concluded three weeks of budget hearings where various state agencies provided commentary on the Governor's proposed FY 2014-2015 state budget. The final week of budget hearings included discussions on county-related issues within the Department of Agriculture, the Department of Public Welfare (DPW) and the Department of Transportation.

Agriculture Secretary George Greig shared with both committees the economic boosts that the state's 109 county and community fairs provide to counties, and noted the budget proposal provides that the fairs would be fully funded with $3 million from the Race Horse Development Fund.

During the hearings with PennDOT Secretary Barry Schoch, both Senate and House members engaged in discussion of Act 89 of 2013, the transportation funding package. Secretary Schoch explained that PennDOT is currently in the process of developing plans to determine which projects will be included in the first year, and that the list of projects will be available soon. Schoch also discussed the bridge bundling program, pointing out that the Public-Private Partnership (P3) board is soliciting proposals to deliver about 600 bridges for total reconstruction; these bridges are also expected to be delivered in three years rather than the typical ten-year time frame.

During her hearing with the House Appropriations Committee, DPW Secretary Bev Mackereth explained that the Human Services Block Grant is a funding mechanism which can treat problems holistically, for example by helping counties more flexibly address a child welfare case that is also affected by mental health or drug and alcohol issues. DPW is asking that the block grant be opened to every county, which is also a CCAP priority.

Gov. Corbett formally submitted Pennsylvania's plan for Medicaid reforms to the U.S. Department of Health and Human Services. The Center for Medicare and Medicaid Services accepted the commonwealth's Section 1115 Demonstration waiver request as a complete application on Feb. 27, triggering a 30-day comment period that ends on March 28. The full request, along with directions for public comment, is posted on the Medicaid website.

Pennsylvania's Healthy Pennsylvania Private Coverage Option waiver request would use federal funds to purchase private insurance rather than to expand Medicaid, as its strategy to increase access to private market health insurance for Pennsylvanians 21 years of age or older, but less 65 years of age, with incomes less than 133 percent of the Federal poverty level ($15,282 in a household of one). The proposal also includes a request for approval of a work requirement, permission to align benefits with private insurance plans, and cost-sharing requirements. It is anticipated that, if the waiver is approved, the proposed plan would begin in January 2015.

The submitted plan includes numerous modifications based on feedback the state Department of Public Welfare received during seven statewide hearings, two webinars, and submitted comments. Some of the changes include modifying cost sharing criteria, providing coverage for the period between the presumptive eligibility application date and the effective date of coverage by the private coverage option, and including locally-based federally qualified health centers in plan networks under the private coverage option.