Sep. 29, 2020

HARRISBURG – Legislation by Rep. Seth Grove (R-Dover) sets hefty, yet achievable, goals of saving taxpayers $150 million over next few fiscal years through targeted savings for the Medicaid outcome-based program, all while improving health care outcomes. It was approved by the House Health Committee today.

“Saving taxpayer dollars is always a goal of mine. The resulting lost state revenue from the governor’s COVID-19 response exacerbated the need for this program to be initiated through my House Bill 2476,” Grove said. “So many other states are already reaping the benefits of similar programs. It is high time Pennsylvania moves into the 21st century.”

Other states to see savings include Texas, which saved $100 million, and New York, which saved $261 million, by implementing their own versions of the program.

Grove’s House Bill 2476 aims to expand on health care outcome programs established as part of Act 40 2018, the omnibus Welfare Code. While the Legislature intended for the Department of Human Services (DHS) to use the program to improve health care outcomes and reduce costs, the department has not fully implemented the program. Under the proposed bill, DHS would provide financial incentives to hospitals and Medicaid Managed Care Organizations for reducing potentially avoidable events.

The legislation sets incentives, which include positive or negative changes in the hospital reimbursement rates under Medicaid. It also directs DHS to meet savings targets to Medicaid utilizing the Healthy Outcomes Program of $40 million in the 2020-21 fiscal year and $55 million in the 2021-22 and 2022-23 fiscal years.

“Improving health care outcomes for Pennsylvanians while saving taxpayer money should be a priority which extends beyond party lines” Grove said “ I look forward to the House taking up the bill so it can be moved to the governor’s desk for his signature.”

House Bill 2476 now goes to the full House for consideration.

Representative Seth Grove
196th District
Pennsylvania House of Representatives

Media Contact: Greg Gross
717.260.6374 /