Senator Don White, Chairman of the Senate Banking and Insurance Committee,
issued the following statement in response to the Governor's plan to raid the
state's MCARE fund to pay for his universal health care proposal.
"It is very disappointing the Governor continues to push his payroll
tax on employers. It is an unacceptable and likely an unconstitutional tax.
Even members of his own party have made it clear that the payroll tax was a
'non-starter' in the past and nothing presented today should change that.
"Equally disturbing is the Governor's effort to target the MCARE fund
as a revenue source for the universal health care proposal. The
approximately $400 million surplus in the fund is obviously attractive, but
raiding MCARE to pay for the universal health care plan raises several red
flags.
"The MCARE surplus is the product of imposing excess health care costs
which have ultimately been passed on to employers and individuals though
increased health insurance premium costs. That $400 million is the amount
that Pennsylvania's health care providers, our doctors and hospitals have
been over assessed in paying for their state-mandated medical malpractice
insurance coverage.
"The Administration uses the term 'fair share' when talking about
taxing employers to pay for the universal health care plan, but the true
measure of fairness here would be to reduce the premium costs paid by the
men, women and institutions that are on the front lines in providing health
care services to all Pennsylvanians.
"It is duplicitous to even consider funding a long-term major
entitlement program with cigarette and tobacco taxes when this is an
increasingly unstable source of revenue.
"Finally, I am utterly disgusted and extremely disappointed the
Administration is again using strong-arm tactics to push its pet programs.
Delaying the reauthorization of the MCARE program means the Administration
is basically holding doctors and hospitals hostage in an attempt to hijack
the fund. If this proposal is so great, then why is this move necessary?
"The Administration has decided to raid the MCARE fund and push a tax
on employers even though those efforts place an unnecessary and intolerable
burden on health care providers and jeopardize the health and well being of
all Pennsylvanians.
"Senate Bill 1137, despite the
Governor's claims, establishes basic, common sense restrictions on how
dollars not needed for the abatement can be used to fund already authorized
health care cost containment initiatives and is not in any way an impetus to
creating a massive $1.5 billion entitlement program.
"Governor Rendell would do well to
heed his own advice: 'We should consider projects, plans and initiatives on
their own merits, not trade them off, you do this and we'll do this. That
leads to bad legislation. We should consider things on their merits'." (Gov.
Ed Rendell, Capitolwire.com, Aug. 23, 2007)
