SENATORS COSTA AND HUGHES INTRODUCE HEALTH CARE PLAN

            HARRISBURG, March 17: State Sens. Jay Costa (D-Allegheny) and Vincent Hughes (D-Philadelphia) today introduced a health care proposal that would make about 513,000 uninsured Pennsylvanians eligible for health coverage.

            Their proposal, the Pennsylvania Access to Basic Care (PA ABC) plan, would extend subsidized health coverage to about 80,000 on the state’s adultBasic program waiting list.  It would also add coverage for behavioral health services and prescription drugs under adultBasic.

            A similar plan has been introduced in the House of Representatives and a vote is expected this week.

            “It is preposterous that nearly 800,000 Pennsylvanians are living without health insurance,” Costa said.  “The legislature needs to step up and pass this crucial reform proposal for the hard-working people of Pennsylvania that do not have access to or cannot afford health care under our current system.”

            PA ABC is projected to provide health care coverage to 217,640 additional adult Pennsylvanians over the next 5 years, which is 42 percent of the estimated 513,000 uninsured adults that would be eligible for the AdultBasic program.

            The proposal would subsidize coverage for people earning up to 200 percent of the federal poverty level.  Adults that do not qualify for the subsidies would be able to buy into the program for about $311 per month.

            “PA ABC would significantly improve and expand the state’s already successful adultBasic program,” Hughes said.  “The legislature cannot let this bill remain stagnant on a committee table, 71 percent of uninsured Pennsylvanians are employed and deserve affordable health care coverage.”

            The billion-dollar PA ABC plan would be funded with state and federal money and individual premiums.  Funding sources in the bill include available balances from the Health Care Provider Retention account, after funding has been provided for Mcare abatements and unfunded liability; the existing Tobacco Settlement Fund and Community Health Reinvestment Funds that currently support the adultBasic program; premiums paid by individuals and employers for PA ABC health care coverage; federal Medicaid matching funds; and additional revenues deposited in the Supplemental Assistance Funding Account, which is at least $120 million in the first year of the program.

            In addition, PA ABC includes $42 million in grants for certain small businesses that already provide health care coverage.  Small businesses with 2 to 50 employees would be eligible for PA ABC if the average salary of all employees is less than 300 percent of the federal poverty level and at least half of the eligible employees enroll in PA ABC.

            “Currently, it is economically straining for small businesses to offer health coverage to all of their employees,” Costa said.  “With the employer/employee cost-sharing premium payments under the proposed PA ABC, I am optimistic that more small businesses would give their employees the opportunity to participate in a quality health care plan.”

            Over 10 years, PA ABC would phase out the Mcare abatement program, Mcare, and retire the program’s $2 billion unfunded liability, or cost of future claims.