Use of Tobacco Settlement Money Under Scrutiny by PA Tax Payers
Tobacco companies agreed to massive settlements to the states about a decade ago. Now, Pennsylvania taxpayers are scrutinizing the allocation of hundreds of millions of dollars of tobacco settlement money into the state’s general fund instead of to health-care programs.
The decision by Republican Gov. Tom Corbett was heavily criticized by health-care advocates who noted that the state recently terminated a low-cost insurance program, AdultBasic, begun in 2002, that assisted about 41,000 people who earned too much money to qualify for Medicaid but not enough to afford private insurance.
Mike Wereschagin of the Pittsburg Tribune-Review wrote in State’s use of tobacco settlement money lights fire under crowd that Auditor General Jack Wagner has been hosting public hearings around the state to show that $1.34 billion in tobacco settlement funds had been spent on non-health-related programs over the past 10 years. He also wants the public to voice their concerns about how the money is spent.
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AdultBasic cost about $200 million in the past year. The governor’s office says the state cannot afford the program, given the state’s $4 billion deficit. The program’s cost was borne by private insurers under an agreement with former Democratic Gov. Ed Rendell.
Mr. Wagner, a Democrat, countered that the tobacco money, which is paid in annual installments, would more than cover the cost of the insurance program. Otherwise, taxpayers end up paying for uninsured health costs.
Governor Corbett’s budget would move $220 million in tobacco settlement money from a state-run health-care investment fund to a proposed economic development fund.
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June 26th, 2011 - 12:43
So in other words, the current Republican Gov is stealing money put in place by an agreement between insurers and former Dem Gov Ed Rendell.
Isn’t that what the people of Pa. elected the new Gov. to do, knowing that Republicans steal public money and give it to their wealthy pals? You get what you elect.