Pennsylvania is temporarily defaulting on $1.2 billion owed to eight state-contracted managed care providers, reports The Morning Call.
The announcement, from Democratic Pennsylvania Gov. Tom Wolf, comes as the state's budget impasse continues. Mr. Wolf said Pennsylvania delayed the $1.2 billion that was due Sept. 15 to keep state programs running and pay state employees, according to the report.
The $1.2 billion is not the only payment Pennsylvania delayed amid the budget impasse. Mr. Wolf also delayed a $581 million pension payment for the Pennsylvania School Employees Retirement System, the report states.
The Morning Call reports delaying the medical and pension payments allowed Pennsylvania to pay approximately $81 million in payroll and $100 million in bond debt.
Governor spokesperson J.J. Abbott said in the report the $1.2 billion would not be available for at least another week.