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House Committee Approves Mentzer Bill to Provide Potential Revenue Boost to PA
HARRISBURG – Permitting the Pennsylvania Treasury Department to contract with other states to process State Supplemental Payments (SSP) could bring the Commonwealth’s General Fund anywhere from $10 to $100 million annually if legislation, authored by Rep. Steven Mentzer (R-Lancaster), is signed into law.

Today, the House Finance Committee voted to approve House Bill 2481, which would give the Treasury legal authority to process other states’ SSP for eligible participants who are also receiving Supplemental Security Income (SSI) payments from the Social Security Administration (SSA). This contract would allow states that currently pay a significantly higher rate to the SSA to process its payments to enjoy cost-savings.

“Pennsylvania currently processes SSP to its eligible citizens who are also receiving SSI payments for considerably less than the SSA’s charge for the same service,” Mentzer explained. “Our in-house processing saves our taxpayers approximately $30 million to $35 million each year, and has the potential to offer similar savings to other states.”

Mentzer noted that according to the Treasury, there is currently one state interested in contracting with Pennsylvania for this service. The Treasury estimates that client would boost the Commonwealth’s General Fund by $10 million in the first year based on its annual SSP volume.

“Allowing the Treasury Department to use its existing and cost-effective payment processing service for this purpose is a win-win for Pennsylvania taxpayers and any potential clients,” Mentzer said. “We have saved our taxpayers more than $295 million since we opted to process our own SSP in 2004, and I believe that much potential savings will be too much for other states to ignore.”

Currently, 11 other states use the SSA to process a portion or all of their SSP.

House Bill 2481 now goes to the full House for consideration.

Representative Steven Mentzer
97th Legislative District
Pennsylvania House of Representatives

Media Contact: Abbey Haslam
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