For Immediate Release Contact:

Monday, June 29, 2009 Berry Friesen (717.471.9691 or 717.232.1270)

"Fiscally prudent bills that would help Pennsylvanians who are hurting"

House Advances Legislation to Stem Decline in Health Insurance Coverage

(Harrisburg, June 29, 2009) Two bills passed by the Pennsylvania House of Representatives earlier today would stem the decline in health insurance coverage among Pennsylvania’s working-age adults.

House Bill 746 would end rate spikes for small employers who provide group health coverage for their employees. These rate spikes occur when a member of a small group health plan incurs significant medical costs, which under current rules are then passed on to the employer in sharply higher premiums. As a result of these spikes and the general volatility in small group rates, many small employers have stopped providing health insurance as a benefit, driving up the number of uninsured.

House Bill 1 would add cost-effective features to the adultBasic insurance plan and expand enrollment by around 85,000 individuals. Over the four years of the planned expansion, 85 percent of the new spending would come from federal funding sources and only 15 percent – around $44 million annually – would come from state sources.

Berry Friesen, public affairs manager for the Pennsylvania Health Access Network, made the following statement.

"It’s gratifying to see the House act today to pass fiscally prudent bills that would help Pennsylvanians who are hurting.

"HB 746 wouldn't cost a dime but would stop and maybe even reverse the decline in private coverage that we see among small employers. Nearly every other state has taken action to make the cost of group health coverage more affordable for small employers. But because of insurance industry opposition, Pennsylvania has continued to put small employers at risk. And that’s costing all of us in the rising number of uninsured and the rising amounts of uncompensated care.

"Conventional wisdom suggests the Senate will bury House Bill 1, just as it buried the adultBasic expansion bill passed by the House last session. We’re not so sure. More working-age adults have become uninsured and their suffering is real. Sure, they get hospital care at the point when they become sick enough, but that is an extremely expensive way to provide health care. How will Senate leaders continue to justify their refusal to accept a fiscally prudent alternative, 85 percent of which would be paid for by the federal government?"

PHAN is a coalition of 50 groups working to improve access to quality health care through the expansion of affordable health insurance coverage. To see a full list of members, go to