Cost of Rendell Care - Commonwealth Foundation

Following, yesterday’s defense of RendellCare (and attack on the Commonwealth Foundation) from the Democratic Party, I though it appropriate to examine the cost of RendellCare. As you know Rendell’s propoganda claims we can save $7.6 Billion in health care – but almost all of that savings is if we eliminate (entirely) hospital aquired infections and error and if we end (entirely) emergency care for non-emergenices. Neither proposal would bear much cost, if any, for taxpayers.

However, the “Cover All Pennsylvanians” part of the Governor’s Plan would create a new cost for taxpayer. The governor’s outline claims we would spend (in taxes, hospital expenses, and insurance premiums) $1.4 billion for care of the uninsured; but fails to estimate how much “Cover All Pennsylvanians” (CAP) would cost. However, below is my own estimate I have assumed that all currently uninsured persons (according to the state’s estimate) enroll in CAP, using the full employer premium and a $25 employee premium, all employers participate and avoid the “fair share” tax, we double the tax revenue from tobacco, and use all the tax revenue currently spent on reimbursing uncompensated care (which the Governor call for). The total: $2.4 billion. Not the kind of savings we are looking for.

Note: my estimates may be inaccurate, but I spent 30 minutes of my time to produce what the Governor’s task force (will several months and a $1 million budget) could not.

PSL If you missed Matt Brouillette debate on the Bob Durgin Show yesterday, listen to The Box on Saturday for more on RendellCare.