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Corbett team negotiates health care for working poor

Brad Bumsted
| Tuesday, January 11, 2011 5:00 a.m.

HARRISBURG -- Leaders of Republican Gov.-elect Tom Corbett's transition team said yesterday they worked out a plan with insurance companies to continue providing coverage to the working poor, but at significantly higher premiums than people pay now.

Corbett's team charged that the outgoing administration of Democratic Gov. Ed Rendell unnecessarily delayed notification to people in the adultBasic program and failed to live up to an agreement to provide state money to extend the program.

Coverage under the program expires Feb. 28 because of a shortage of money. About 45,000 people receive adultBasic coverage.

Corbett spokesman Kevin Harley said the Rendell administration didn't provide $56 million to fund the program through June 30. Insurance companies agreed to pay $51 million.

Harley said Rendell "wanted to have Tom Corbett deliver the tough news they should have delivered months ago."

"I think it's typical Ed Rendell," Harley said. "He made promises he never kept. He had an obligation to fund the additional money, and he didn't."

"Knock it off. Governing isn't easy," said Steve Crawford, Rendell's chief of staff.

Asked about the money Harley said the state agreed to provide, Crawford said he wasn't aware of the details. Yet, he said, "We haven't reneged on any deal."

It's unusual for a governor's transition team to actively participate in negotiating policy, but Corbett's team said it had no choice, given the consequences if people do not soon receive notification. Corbett takes office Jan. 18.

"I never heard of that, where the incoming administration makes arrangements to solve a problem before they take office," said G. Terry Madonna, a political science professor at Franklin & Marshall College in Lancaster.

Crawford said Rendell presented Corbett with proposals for adultBasic three weeks ago. One idea involved asking the Legislature for a supplemental budget to provide funding.

"It's up to the next administration to decide whether they want to do that," Crawford said. "(Rendell) is basically powerless, going forward."

The adultBasic program is funded by insurers under a 2005 state law and state money from the tobacco settlement fund. It was intended to provide health coverage for people who can't afford private insurance but make too much money to qualify for Medicaid.

A family of four with a household income of $44,100 would qualify, but the program has a long waiting list.

Recipients pay $36 per month for basic coverage such as hospital visits, preventive care, physician services and treatment of illnesses and injuries.

Under the plan Corbett's transition team soon will announce, people with adultBasic coverage will be eligible for the "special care" program Blue Cross affiliates offer, for $80 to $190 per month, Harley said. Insurance companies fund that program.

"It's not ideal," said Tom Paese, co-director of Corbett's transition team. "But, guess what• It's a lot better than having no insurance option at all."

Paese is a lobbyist and his firm, Buchanan Ingersoll, represents Highmark, one of the four Blue Cross companies. The others are Northeast Blue Cross, Independent Blue Cross and Capital Blue Cross.

Rendell spokesman Gary Tuma said Corbett's team is directing people to a program that existed and that many could not afford.

There are about 400,000 people on a waiting list for adultBasic, but last year only 28 percent at the head of the line qualified, according to Corbett's transition team.


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