Governor Corbett signed a $28.375 budget Sunday night, delivering a third straight year of on-time budgets.  The bill represents a spending increase of $645 million or 2.3 percent over the FY 2012-2013 budget.  Beyond the budget, there was no action on transportation, liquor privatization or pensions.

The final budget is $64 million less than Governor Corbett’s original budget request.  Over the next few days, the House and Senate will continue its work to pass the enabling legislation required to fully implement the budget package. We then expect the legislature to recess for the summer. 

Final Budget Deal: MA, Public Welfare and Health Services

Medical Assistance, public welfare and health services are always big budget items. Here is what we know so far about those areas:

Managed Care

  • There is a 2.5% rate increase for Physical Health MCOs;
  • The budget provides full funding for Pay for Performance payments;
  • Medical Assistance Long Term Care demonstration project language was inserted into the Welfare Code (a side letter with DPW being drafted);
  • An additional $50 million for programs for older Pennsylvanians, such as home and community-based service and prescription drug financial assistance.

Nursing Homes

  • The final budget, when the Welfare Code passes the Senate, will include a 2% increase in the overall appropriation for nursing homes. The legislation also includes an increase in the Medicaid Access Add On Payment from $7 million to $8 million. The additional $1 million was added in the Senate as an add-on and is not part of the increase in overall rates. The Senate is expected to pass the Welfare Code on Wednesday, July 3.

Behavioral Health/Intellectual Disabilities

  • There is a 2% rate increase for Behavioral Health MCOs;
  • There is a4.5% increase for Mental Health Services;
  • There is a $450K increase for Autism Intervention and Services.