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Capitol Correspondence - 05.05.17

PA Governor Looks at Raising Minimum Wage to Achieve Medicaid Savings

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In the state budget proposed by Pennsylvania Governor Tom Wolf, approximately $50 million in public benefits would be realized from increasing the state minimum wage from $7.25/hr to $12/hr. Much of the money saved would come from 100,000 who would no longer be eligible for Medicaid due to increased income. As reported by the Pittsburgh Post-Gazette, some potential savings would be canceled out because state-subsidized wages for some workers in certain fields, notably direct care workers for individuals with disabilities, are currently below the $12 threshold. Several states and localities have increased their minimum wages beyond the current federal minimum wage of $7.25/hr.