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Tags Posts tagged with "State Budget"

State Budget

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As of today, September 18, RCPA is reporting to members that the budget impasse unfortunately remains unchanged after 80 days. As this week comes to a close, it does not appear there will be action to move the budget process forward.

The Senate currently remains on 24-hour call, with their next scheduled session days October 20 – 22. The House has their first scheduled Fall session set for September 29 – October 1.

Every day that passes without a budget is another day of uncertainty for:

  • People with disabilities, who rely on base-funded supports to live, work, and thrive in their communities;
  • Individuals and families in recovery, whose access to care depends on consistent funding and provider stability;
  • Children and adults facing mental health challenges, who can’t wait weeks — or months — for the services they need today;
  • Human service professionals, who are burning out, underpaid, and leaving the field in record numbers;
  • County governments, who administer core safety net services and are already preparing to withhold payments due to the impasse; and
  • Nonprofit organizations and service providers, who operate on tight margins, front the cost of services, and risk financial insolvency without reimbursement.

We thank our members for their participation in the recent State Budget Impasse Survey that was organized by agencies, associations, and providers to collect data regarding both the current and projected impact on both for-profit and nonprofit financials, staffing, and ultimately those served. We will continue sharing information with all entities involved so that the survey results can be analyzed and disseminated to the media and legislative contacts most efficiently.

You can also view this article from Spotlight PA, which provides a good overview of where the PA General Assembly caucuses stand and what is causing the impasse to continue.

If you have any questions or concerns, please contact your respective RCPA Policy Director.

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The status of the PA state budget continues to impact every provider, insurer, and health care organization. With funding in limbo and federal Medicaid cuts already causing disruptions in services, providers are having to work together and create unique solutions to funding and providing patients with quality care.

At the 2025 RCPA Conference Strive to Thrive, RCPA is hosting an Agency Leadership Discussion Panel comprised of experts who have been following the status of Pennsylvania’s budget. The panel will include professional input from:

Paul Dlugolecki
Brier Dlugolecki Strategies
Jack Phillips
Novak Strategies
Jenn Tyler
Wojdak Government Relations

Join this panel on Wednesday, September 10, in the Crystal A room, from 3:15 pm – 4:15 pm, where they will:

  • Discuss the current status of the budget and potential timelines;
  • Analyze the impacts of the budget impasse and the budget itself on providers and health care organizations;
  • Share strategies that providers are using to continue providing care to their patients; and
  • Host a Q&A with attendees for an open, honest discussion on what is happening and what providers can do to support themselves and others.
Register today for the 2025 Conference and reserve your seat. View the Registration Brochure for complete details regarding our schedule, booking a hotel room, and more!

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On Tuesday, July 29, the Governor’s Office of the Budget provided an update on the status of the Fiscal Year (FY) 2025/26 state budget. The update outlines projected impacts across various departments within the Department of Human Services (DHS) over the next six weeks resulting from the ongoing budget impasse. Although the Governor, Senate, and House leadership have described ongoing negotiations as respectful, they have also been described as inching along. The letter from Secretary Monson cites funding for public schools and mass transit as top challenges in finalizing a budget.

Following is a summary of payments from Pennsylvania health and human services departments that will be delayed without a budget.

Department of Aging cannot distribute:

  • $12.88 million in payments to the Area Agencies on Aging, for July and August.

Department of Drug and Alcohol Programs cannot distribute:

  • $9.95 million quarterly payments to the Single County Authorities.
  • $187,000 quarterly payments for training of substance use disorder and problem gambling service professionals.
  • $21 million quarterly payments for State Opioid Response funding.

Department of Health cannot distribute:

  • $9.405 million in anticipated quarterly reimbursements to County Municipal Health Departments.
  • More than $4.7 million in quarterly funding to support operation and administration of EMS services.
  • $9.405 million in quarterly funding to school districts for health services.
  • More than $3.466 million in quarterly payments for the Prescription Drug Monitoring Program, beginning in July.
  • Payments for critical health services, including, but not limited to: Tuberculosis screening, Cystic Fibrosis, Lyme Disease and Cancer Screening, beginning in July.
  • More than $1 million in quarterly payments for Maternal and Child Health services and $1.8 million in quarterly for Newborn Screening.

Department of Human Services cannot distribute:

  • $15 million in quarterly advances for Behavioral Services, beginning in July.
  • Quarterly advances for Breast Cancer Screening services.
  • $390 million in County Child Welfare payments for July and August.
  • $8.5 million in payments for Domestic Violence for July and August.
  • $3.5 million in quarterly advances from the Human Services Development Fund.
  • An estimated $33 million in Child Support Enforcement payments, for July and August.
  • $3.4 million in payments for Rape Crisis for July and August.
  • Approximately $10 million for Community-Based Family Centers for July and August.
  • $5.6 million in quarterly advance payments for Homeless Assistance.

Read the letter from Secretary Monson here. If you have any questions, please contact your respective RCPA Policy Director.

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The Office of Developmental Programs (ODP) recently issued gross adjustment payments to ODP providers based upon the rate increase that was approved in the 2024/25 PA state budget. The gross adjustment was on the remittance advice dated Monday, December 23, 2024.

In terms of determining the gross adjustment payments, ODP took all paid claims data between July 1, 2024 – September 30, 2024, and increased the paid claims 8% for non-residential and 6% for residential.

If a provider has questions regarding the gross adjustment they received, please reach out to either RateSetting or ODP Claims Resolution, and ODP staff can research each situation and concern.

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