PHAN Issues Statement on adultBasic and PA Fair Care

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HARRISBURG, PA (January 25, 2011) — On Monday, the Corbett administration proposed offering some adultBasic enrollees with pre-existing health conditions the option of enrolling in PA Fair Care, a federally funded high-risk insurance plan.

Antoinette Kraus, Project Director for the Pennsylvania Health Access Network, issued the following statement:

“We welcome the Corbett administration's effort to find alternatives to extend health insurance coverage to the 42,000 adultBasic enrollees who are slated to lose their insurance next month. All federal and state options should be explored.

“The proposed use of funds from the federal Pre-existing Condition Insurance Plan, however, is not an option for adultBasic enrollees.

“The Affordable Care Act requires that individuals be uninsured for six months prior to enrollment in a high-risk pool plan, like PA Fair Care. It is highly unlikely that Congress will change this in the near future. AdultBasic enrollees should not be forced to go uninsured for six months.

“Pennsylvania enrollment in PA Fair Care is currently capped at 3,500 individuals and only 1,200 slots are available. The high-risk pool, under any circumstances, will not be a solution for 42,000 people who will lose their adultBasic health coverage next month.

“We urge the Governor to keep all options on the table, including additional contributions from the state’s four Blue Cross/Blue Shield plans. These state-established non-profit organizations have a charitable obligation that they must fulfill. The commonwealth should hold these entities accountable rather than allowing them to walk away from their responsibility to the people of Pennsylvania.

“The premium assessment required under the Community Health Reinvestment Agreement is commonly used across the country to subsidize health insurance costs for individuals with pre-existing conditions. The Blues could fully fund adultBasic with less than 3 percent of their collective surpluses of $5.9 billion in 2010. This is a contribution the Blues can afford.

“Governor Corbett should work with lawmakers to find a solution before adultBasic ends on February 28.”

The Pennsylvania Health Access Network (PHAN) is a coalition of 50 groups from across the Commonwealth working to improve access to quality health care through the expansion of health insurance coverage. To learn more, go to www.pahealthaccess.org .