Proposed Health Insurer Tax Faces Tough Road

A proposed 2% assessment on health insurance providers is facing some stiff criticism in the state Senate. Senator Jake Corman who chairs the Senate's Appropriations Committee says the Governor's proposal will result in increased premiums to consumers, possibly raising the number of uninsured Pennsylvanians. The 2% assessment is an attempt to increase revenue for the state's medicare enrollees. Corman says in the current economic climate it is "naive" to expect for health insurance providers to pay the assessment without passing the cost on to consumers. Cormen said the proposed assessment has very large hurdles to clear before it can be approved.