AdultBasic Insurance Premiums Increase March 1

While Congress continues to work on health care overhaul legislation, people in Pennsylvania's adultBasic insurance program and many on the waiting list will be paying more for their coverage. Pennsylvania Insurance Commissioner Joel Ario says there has been no increase in funding for adultBasic but demand is increasing....
"We have a health care crisis, costs continue to go up...without federal reform, it will become even more difficult to cover people in the program much less those on the waiting list."
About 3,000 of those on the waiting list purchase health insurance through the state. Effective March 1, their monthly premiums will increase from an average $330 to $600.
There are 41,000 Pennsylvanians in the insurance program. Their average monthly premium will rise from $35 up to $36. However, Ario says their co-payments will double and benefits that they received at no charge including chemotherapy, home health care and diabetic supplies will have a 10% coinsurance fee, with an annual maximum of $1,000...
"it's similar to what's happening with private insurance, there's an increase in cost-sharing and a reduction in benefits....it's a double whammy."

Ario says the waiting list has increased dramatically with fewer than 100,000 two years ago and now it's up to 369,000. However, Ario says the number of people in the program has actually dropped by 17,000 the past two years through attrition...."we haven't yet had to terminate anyone from the program" and that's the reason for the increase in premiums and co-sharing.