Kim bill to bolster health insurance through Pennie passes Pa. House

A bill offering Pennsylvanians who buy health insurance through Pennie to receive financial assistance to help pay premiums has been passed by the state House of Representatives.

House Bill 2234 was introduced by House Insurance Committee Chair Patty Kim, D-Cumberland/Dauphin, and would award financial assistance to Pennie customers to help pay their premiums. The pilot program would answer Gov. Josh Shapiro’s call for health care insurance improvements.

“Pennie and the reinsurance program have been very successful this past open enrollment period, a record 435,000 Pennsylvanians bought their health insurance through Pennie,” Kim said in a statement. “But many Pennsylvanians especially those coming off Medicaid cannot afford a Pennie plan. Many other Pennsylvanians technically have coverage through Pennie, but that coverage has a deductible in the thousands of dollars.”

Kim added that Pennie provides health care coverage for Hundreds of thousands of Pennsylvanians who fall outside of traditional work-related coverage options, but many families still struggle to meet their deductibles or pay their premiums.

In addition, more than two-thirds of uninsured people who applied for, but did not purchase, Pennie coverage said it was too expensive. According to Federal Reserve data, as 13% of adults are unable to pay a $400 unexpected expense at a given time, many Pennie customers cannot afford their coverage.

“House Bill 2234 has two goals in mind: more people get insurance, and more people get better insurance,” said Kim. “The bill gives Pennie the flexibility to explore ways to mitigate high costs and deductibles for about 200,000 to 300,000 Pennie customers. The difference can really save lives.”

Shapiro's?2024-25 budget seeks new investments into the state's reinsurance program to fund the proposals in H.B. 2234. In May, 55 consumer advocate groups supported the governor’s plan.

“Health insurance is an important safety net to support participation in the workforce, access to health care, and financial stability of Pennsylvanians,” Shapiro said. “Incentives like the subsidy-wrap program increase affordability of Pennie plans.

“This is a good policy tool to encourage more Pennsylvanians who either earn too much to qualify for Medicaid, or don't have access to employer-sponsored health insurance, to secure coverage from Pennie,” added Shapiro.

Copyright © 2024 BridgeTower Media. All Rights Reserved.