Mcare Fund Raid Facts and Misconceptions
The proposed Mcare Fund raid to balance the state budget has rightfully angered Pennsylvania physicians. I hope the information below will clear up any misconceptions you may have about the Fund. This information will help you talk to your legislators about Mcare.
Daniel Glunk, MD, President, Pennsylvania Medical Society
|
Misconception
|
Fact
|
| The Mcare Fund balance is made up of cigarette tax revenues or Auto CAT Fund surcharges. |
The Mcare Fund balance resulted from excess premiums paid by physicians, hospitals, nurse midwives, podiatrists, and nursing homes.
|
| The Mcare balance is excess money that is not needed to pay claims. |
The Mcare Fund says that if claims payouts exceed annual assessments, the balance can be used to shield providers from premium spikes.
|
| The Mcare Fund balance is available to balance the budget. |
The Mcare Fund balance is the subject of ongoing litigation and may be required to be used to lower Mcare assessments.
|
| Physicians have received nearly a billion dollars in Mcare abatements. |
Although the legislature granted $946 million in abatements between 2003 and 2007, the Rendell administration only transferred $330 million from the Health Care Provider Retention Account to the Mcare Fund to pay for them. To a large extent, physicians paid for their own abatements through inflated Mcare assessments.
|
| Raiding the Mcare Fund balance will have little impact on future assessments charged to physicians and hospitals. |
The Mcare Fund has an unfunded liability of $1.66 billion. Every penny taken to balance the budget will have to be recouped from health care providers to retire that shortfall.
|
| Taking money from the Mcare Fund to balance the budget isn’t a "big deal." |
Physicians and injured patients trust the state to run the Mcare Fund for their benefit. Raiding the Fund is a fundamental breach of faith, and will destroy any remaining belief in the Mcare Fund’s integrity.
|
Last Updated: 9/28/2009