Recent Research
DECEMBER 16, 2009 | Commentary by KATRINA CURRIE
Five Threats to Pennsylvania's Prosperity
Pennsylvania has long been one of the most economically stagnant states in the nation. For the period 1991-2008, the Commonwealth ranked 45th in job growth, 46th in personal income growth, and 47th in population growth. Pennsylvania has also faired poorly in independent evaluations of states' business climates, i
MAY 8, 2008 | Policy Report by MICHAEL BOND
Medicaid Reform: Mending the Holes in Pennsylvanias Health Care Safety Net
Politicians and school officials frequently point to student performance on state tests as a primary measure of the quality of public education. According to the Pennsylvania Department of Education, the Pennsylvania System of School Assessment (PSSA) “is a standards based criterion-referenced assessment used to measure a stude
MAY 1, 2008 | Testimony by RICHARD DREYFUSS
Healthcare Affordability
Healthcare Reform Principles Every reform action should be tested against two criteria: • Does it take costs out of the system?• Does it price insurance in proportion to expected usage of the system?
Recent Blog Posts
MARCH 10, 2010
Time to Act on Medicaid Fraud
The Heartland Institute put out a compilation of resources on reducing fraud in Medicaid and Medicare. In Pennsylvania, Auditor General Jack Wagner has found fraud and errors in Medicaid that could add up to around $1 billion dollars.
The American Legislative Exchange Council has model legislation (members only) on An Act Relating To Recovery Audits For Government Overpayments Of Tax Dollars, which would attempt to recover overpayments and fraudulent payments in Medicaid (and other state programs) by rewarding contractors with percentage of funds recovered.
posted by NATHAN BENEFIELD | 00:31 PM | 0 comment
FEBRUARY 4, 2010
Free Money Or Greater Burden?
Pennsylvania has not known the meaning of fiscal responsibility for quite some time. Unfortunately, for working Pennsylvanians, that is not about to change. Pennsylvania's General Fund revenues are already $374 million below estimate for the 2009-10 fiscal year, and certain to increase.
Although it might come as a relief to legislators that President Obama could release funds to states to boost Medicaid payments, there is no respite for taxpayers. The state of Pennsylvania is poised to get $850 million in additional federal aid.
There is no such thing as free money - funds that the government borrows or prints will only affect our wallets in the future. Increased federal aid only augments the problem and creates perverse incentives for states to spend more.
Furthermore, Medicaid is a program in dire need of an overhaul. Currently, almost 26 percent of the Pennsylvania budget can be chalked down to Medicaid spending. With Medicaid spending increasing at 8 percent annually, its long term fiscal situation is unsustainable.
But instead of fixing Medicaid, budget, pension, unemployment benefits, and a host of other problems, the state and federal government push the problem away for another day while increasing the burden on future generations of taxpayers.
posted by ABHILASH SAMUEL | 08:53 AM | 0 comment
FEBRUARY 2, 2010
Medicaid Errors in PA Cost Upwards of $320 Million
In a news release, PA Auditor General Jack Wagner estimates that - using the Pennsylvania Department of Welfare's (DPW) estimated error rate - improper Medicaid payments cost Pennsylvania taxpayers $320 million per year. But Wagner's audit found an error rate of more than triple what DPW claims. In other words, eliminating Medicaid waste could save taxpayers a nice round figure of $1 billion dollars. (HT Tony Phyrillas)
Auditors found errors in 1,951, or 14.7 percent, of 13,225 Medicaid cases selected randomly from 567,984 Medicaid cases from 90 county assistance offices in 64 counties. DPW has asserted that the error rate is only 4%, but eliminating just 4% of those errors would save Pennsylvania taxpayers $320 million per year, Wagner said.
The failure of DPW to crack down on Medicaid fraud earned former secretary Estelle Richman an appointment with the Obama administration, despite the fact that she has seemingly paid her taxes on time.
Meanwhile, I predict that in his final budget address, one week from today, Governor Rendell will insist that there is nothing left to cut in the state budget.
posted by NATHAN BENEFIELD | 09:05 AM | 0 comment

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