For Immediate Release
May 3, 2010
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Senate Passes Folmer's High-Risk Pool Legislation  

Harrisburg –Senator Mike Folmer's Senate Bill 507, legislation to establish a state High Risk Pool (HRP), today passed the full Senate by a vote of 49-1.

Senate Bill 507 is a key component of Healthy PA, Senator Folmer's plan to reduce health care costs and enhance the quality and access to care for Pennsylvanians. "Moving this bill a step closer to becoming law is a stride toward true health care reform and empowering consumer-and market-driven initiatives, rather than government imposed mandates and costs," said Folmer.

Folmer said many other states have some version of a high risk pool, which does not allow public funds to pay premiums. Folmer's legislation sought to apply this provision to Pennsylvania law while establishing an independent board of directors to oversee the operations of the pool and ensure it is self-sustaining. The new federal health care law forced changes to Folmer's bill.

"The goal of SB 507 was to create an independent, self-sustainable entity capable of providing affordable coverage to all consumers – especially younger, healthier people," said Folmer. "Hopefully, Pennsylvania and other states will be able to still carry out this mission with the new federal care restrictions."

Folmer's Senate Bill 1312, would exempt Pennsylvania from many of the mandates of the new federal law.

Folmer compared the HRP to the auto insurance market, where such a pool helps to assure the ability to appropriately match premiums to the cost of the underlying risk sold in the marketplace.

As originally introduced, the bill would also have allowed individuals to decide what, if any, of Pennsylvania's 50 existing health mandates, they wanted to pay for. 

"Not all Pennsylvanians may want or need each mandate," said Folmer. He cited an example, of a 21 year-old single male who most likely would not need coverage for women's health issues. However, if he chooses to pay for them, he should have the option to add them through riders to his policy. 

In addition to being a component in Folmer's Healthy PA package, Senate Bill 507 is part of HealthNET PA, the Senate Republican Caucus plan to expand access to health care and medicine to 507,000 uninsured and low-income working Pennsylvanians.

Last month the legislation unanimously passed the Senate Banking and Insurance Committee. The bill now goes to the full House for consideration.

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