FOR IMMEDIATE RELEASE
State Rep. Eugene DePasquale D-York www.pahouse.com/DePasquale

DePasquale health care proposal advances

HARRISBURG, June 18 – State Rep. Eugene DePasquale, D-York, said legislation he authored to permit small businesses to pool together for the purpose of purchasing group health insurance was adopted by the state House this week as part of a larger health-care bill.

"This is vital to small businesses, which often don't have the same purchasing power as larger companies," DePasquale said. "This can reduce a company's health-care options for their employees and force higher insurance rates."

DePasquale's proposal, which would address this problem by permitting small businesses to form groups for the sole purpose of negotiating health insurance plans, was added as part of a small group health insurance reform bill, H.B. 746, authored by House Insurance Committee Chairman Tony DeLuca, D-Allegheny

House Bill 746 would guarantee renewability of coverage for small employers (from two to 50 employees) and eliminate pre-existing conditions, including pregnancy. In addition, for small group coverage written by larger marketplace players, the bill would include:

· rating limitations;

· caps on premium increases;

· initiation of wellness discounts;

· development of standard health benefit plans; and

· rate reviews by the state Insurance Department.

Using DePasquale's language, the bill also would provide small employers with the ability to join together for the purpose of purchasing health insurance so long as the purchase is from a licensed carrier. Finally, H.B. 746 would require colleges and universities in the Commonwealth to offer students basic health-care plans for purchase.

The bill will now be considered by the House for a full vote, which is expected next week.