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While work on the 2016–2017 state budget is now underway, the 2015–2016 state budget impasse has only been partially resolved. As a result of Governor Wolf’s line-item vetoes in House Bill 1460, key state funding (and it’s federal match) for the current fiscal year remain at significant risk.

HAP continues to press for full restoration of the 2015–2016 funding vetoed by the Governor, specifically his vetoes of the Medical Assistance (MA) supplemental payments for obstetric and neonatal services, hospital-based burn centers and critical access hospitals (CAH), including the two newly designated CAHs. HAP is also concerned about the nearly $2 billion cut to the MA Capitation line for managed care payments the commonwealth is obligated to make.

With regard to the Governor’s 2016–2017 proposed state spending plan, HAP is disappointed his proposal would again zero out MA supplemental funding for obstetric and neonatal services, hospital-based burn centers and critical access hospitals. HAP does support the Governor’s proposed $1 increase in the state’s cigarette tax and his proposal for new taxes on other tobacco products not currently taxed.

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