Adjust Text Size

For Immediate Release
June 21, 2001

White: Senate Approves Tobacco Settlement Spending Plan

Money for health insurance, research, smoking prevention

Harrisburg -- The landmark tobacco settlement bill approved by the state Senate today provides health coverage to more needy Pennsylvanians, promotes
smoking cessation and prevention programs and will help more senior citizens stay in their homes, according to Sen. Mary Jo White (R-21).

“This was an unprecedented opportunity to make wise healthcare investments, and I am glad that we worked together to do it in a responsible manner,” White said. “Adults without health care will now receive insurance coverage. More senior citizens will receive the in-home care they need, health-related research will be bolstered, and new emphasis will be placed on smoking prevention.”

Under the terms of the national tobacco settlement, Pennsylvania could receive up to $11.5 billion, in increments of approximately $340 million annually over the next twenty-five years. House Bill 2 divides that funding up by percentages and designates its use.

The largest percentage of the money will be used to provide health care coverage for adult Pennsylvanians who are currently without insurance. Significant funding is also set aside for tobacco prevention and cessation programs; home care for senior citizens; health care research efforts; and, to reimburse hospitals for uncompensated charity care.

More than 20 percent of the tobacco settlement fund -- about $85 million annually, will  help senior citizens by expanding the Commonwealth’s subsidized prescription drug program and allowing more senior citizens to remain in their homes.

About $52 million annually will be used to expand home-based services aimed at helping more aging seniors live independently longer. In addition, individuals who need nursing home care but are not financially eligible for Medical Assistance could receive services through the Department of Aging. 

The settlement package also invests about $32.4 million annually in the PACENET subsidized prescription drug program for senior citizens for the next three years. This money will allow for a $1,000 increase in the program’s income guidelines, so that it will include single senior citizens with incomes between $14,000 and $17,000, and married seniors with incomes between $17,200 and $20,200.

The expanded PACENET income limits are expected to benefit 10,500 seniors. An additional 13,000 seniors will benefit from a provision that allows people to re-enroll in PACE if a recent cost-of-living adjustment to their social security income made them ineligible.

“Home-based care is a cost-effective alternative to nursing homes that allows seniors to live more independently,” said White.  “The prescription drug issue gets more attention, but it is just as important to provide the visitation and support services that will allow more seniors stay in their homes as long as possible.” 

Senate Republicans will work through the summer to develop a more comprehensive approach to dealing with prescription drugs in Pennsylvania, ensuring the stability of that program for many years to come. 

While expanding health care opportunities today, the measure also looks to the future as well by providing significant funding for health care research and the development of three regional biotech greenhouses. 

Finally, the measure includes a requirement that some of the tobacco money be set aside for the future. 

“The last thing we want to do is squander this unprecedented opportunity, so we will set aside a percentage of the settlement in an endowment, to make sure Pennsylvania is well-positioned for the future,” White said. “This is a comprehensive package that invests in a wide range of health care initiatives and is a responsible starting point for addressing prescription drug costs.”