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Pennsylvania 'Blues' Agree to Commit Funds Annually
PHILADELPHIA -- Pennsylvania Gov. Edward G. Rendell yesterday announced a landmark agreement with Pennsylvania's four Blue Cross/Blue Shield plans for an ongoing annual commitment of funds for Annual Community Health Reinvestment. For this year alone, more than $85 million of the nearly $150 million in committed reinvestment will be used to provide affordable basic health care coverage for thousands of low-income and uninsured Pennsylvanians, Rendell said. The remainder will go toward other health care related services in the community.This represents a commitment of nearly $1 billion over the life of the agreement, Rendell noted. "For the past year, at any point in time, as many as 101,000 Pennsylvanians have been on a waiting list for access to affordable basic health care in the state-sponsored adultBasic program," he said. "The majority of these people are working at least one job while many are working two or more jobs in order to care for themselves and their families."A not-yet-released study by the Insurance Department shows that more than 150,000 Pennsylvanians with incomes below 200% of the federal poverty level work for small employers -- under 50 employees -- many of whom cannot afford to pay for health care coverage for their employees," Rendell continued. "We know that these working Pennsylvanians defer basic health care, putting themselves and the families who rely on them at risk."The Rendell Administration entered into the Annual Community Health Reinvestment agreement as a way to define the nature, scope and extent of the Blue Plans' community health contributions. "Getting four companies to agree to the specifics was a challenge, but all those involved were committed to doing what was right for our citizens in need," Rendell said.Overall, 70% of Pennsylvania's uninsured work and 75% of this population work for private companies, according to the state Insurance Department. This is higher than many other states, where the size of the uninsured working is 60% or less and where a larger proportion of the uninsured are self-employed, Rendell said. This agreement will result in access to needed basic health care coverage for lower-income Pennsylvanians in every corner of the state."These statistics prove that targeting programs to help the uninsured is appropriate and necessary," Rendell said. "These programs collectively benefit all Pennsylvanians. Some part of the health care costs we all bear is related to the number of uninsured who, by necessity, use health care services in hospitals, particularly in emergency rooms. The financial pressure this puts on hospitals finds its way into rates negotiated between them and insurance companies and ultimately into the costs we all pay for insurance coverage - whether you are an individual, an employer or the Commonwealth."The Blue Plans have agreed that a certain percentage of their premiums, based on a formula, will go toward providing health care for low-income Pennsylvanians. For the next six years, 60% of those funds will be dedicated to providing health insurance through state-approved programs for both low-income and uninsured persons through programs like adultBasic.The remaining 40% will be allocated by the Blue Plans to other permitted community health reinvestment endeavors, which are defined in the agreement as:Health coverage programs for low-income and uninsured persons. Other programs or means of subsidizing or providing health care coverage and or services or persons unable to pay for services or without access to affordable health care coverage.Other community health care-related expenditures."