Bill could help control Medicaid costs
State Rep. Jason Ortitay, R-South Fayette, on Wednesday introduced legislation that would create a patient-centered approach to Medicaid in an effort to control costs and improve health care delivery.
Medicaid costs in Pennsylvania continue to grow for a variety of reasons, including requirements under the Affordable Care Act. Starting this year, states that expanded Medicaid must begin to pay part of the cost. It starts at 5 percent in 2017 and grows to 10 percent by 2020. The governor’s executive budget delivered in February pegs the commonwealth’s increased cost for Medicaid expansion at $100 million this year.
“While more people than ever are enrolled in Medicaid, the delivery of health care in the commonwealth has not significantly improved,” Ortitay said. “It’s time to look for changes. My legislation would give Medicaid enrollees medical choice through a Health Savings Account and incentivize preventive care.”
House Bill 1638 would be based on Indiana’s successful Healthy Indiana program.
Under the bill, each Medicaid enrollee would receive a Health Savings Account. Enrollees would be required to contribute a small percentage of their income to the account. An employer could contribute 50 percent of the enrollee’s contribution.
The state then would contribute the difference between the enrollee’s contribution and $1,100. In addition, the Commonwealth would deposit up to $500 per enrollee above the state’s required contribution to incentivize the use of preventive care. Enrollees also would be required to pay for emergency room visits if used for a nonemergency.