Government Relations
In February , Governor Shapiro delivered his first budget address at the Capitol . The House and Senate Appropriation Committees held public hearings to grill agency executives about the Governor ’ s proposed budget and negotiations between the legislature and administration will take center stage in May and June .
Budget highlights :
• Expands the state ’ s Property Tax and Rent Rebate Program by increasing the income cap for both homeowners and renters to $ 45,000 and boosting the maximum rebate to $ 1,000 ( a $ 350 increase ). This will expand the program to allow 173,000 additional residents to qualify for the program above the 400,000 currently eligible . At the program ’ s peak in 2009 , more than 600,000 rebates were issued and the number has been declining since because the income cap had not kept pace with inflation .
• Increases the 911 surcharge on phone bills to $ 2.03 , up from $ 1.65 , while eliminating the gross receipts and sales tax on monthly cell phone bills . A portion of funding from this increase will be used to bolster statewide access to the new 988 mental health crises and suicide prevention hotline .
• Boosts funding in the state ’ s main line item for school operations by $ 567.4 million , a 7.8 % increase from this year , to nearly $ 8.2 billion , while also increasing funding for special education by $ 103.8 million , to more than $ 1.4 billion .
• Increases child care services funding by $ 66.7 million to allow 75,000 low-income families to get subsidized child care .
• Proposes a five-year $ 100 million block grant program for schools for mental health services for students and staff .
• Provides a personal income tax credit of $ 2,500 a year , for up to three years for those newly employed in nursing , teaching and policing .
• No change in the scheduled reduction to the state ’ s tax on corporate profits . Shapiro administration officials said they are still open to accelerating cuts in the state ’ s corporate net income tax as the governor proposed on the campaign trail . At least for this year , they said they want to continue to monitor business tax collections in an uncertain economy . As is , the rate will drop from 8.99 % to 8.49 % in January .
• Includes $ 5.75 million for new staffing in the Department of Environmental Protection to help with permitting and enforcement of clean air and water regulations .
• Proposes $ 16.4 million for new cadet classes to add 384 new state police troopers by the summer of 2024 . This funding doesn ’ t increase the size of the state police force , but will help the department fill existing and projected vacancies .
• Provides $ 17.5 million to reduce the wait list for services for individuals with intellectual disabilities .
• Includes a 2 % increase for higher education institutions as well as invests more in career and technical education and apprenticeships . Shapiro administration officials said they are looking to have a broader discussion about the investment Pennsylvania makes in higher education .
The Department of Human Services ( DHS ) budget includes an 8 % increase in dental Medicaid fees in the state ’ s fee-for-service program , which will also be accounted for in managed care rate development if adopted . While there are no plans to restore the adult benefit package to pre-2011 levels , DHS states that it is committed to improving the Benefit Limit Exception process for dentists who treat adult Medicaid patients . While grateful of the administration ’ s intent to increase Medicaid fees for dentists , PDA will work with appropriation leaders in the House and Senate to request an increase above the 8 % requested by DHS .
Legislative Update
As the session picks up pace this spring , PDA continues to push its dental insurance reforms ( DIR ) agenda at the state level and respond to other legislative proposals . There are several bills “ in the works ” that may gain traction this session :
• Credentialing : Bills introduced in the House and Senate will streamline credentialing for health care practitioners by requiring use of the CQHC credentialing system and establishing a deadline for insurers to credential a practitioner .
• Medical Loss Ratio : PDA is working with a sponsor to introduce legislation that would require insurers to file a report with the Pennsylvania Insurance Department indicating the percentage of dental insurance premiums spent on patient care verses administrative expenses .
• Virtual Credit Card : PDA is working with a sponsor to introduce legislation that would prohibit insurers from requiring virtual credit card payments as the exclusive method in which dentists are paid .
• Telehealth : PDA is one of the stakeholder groups working with staff from the Senate Banking and Insurance Committee to define telehealth services and provide insurance reimbursement for dental care rendered through telehealth .
MARCH / APRIL 2023 | PENNSYLVANIA DENTAL JOURNAL 7