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Governor Rendell Says PA ABC Will Help Low-Wage Small Businesses Pay for Employee Health Coverage
Date:5/29/2008

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CARE grants will help relieve the burden on businesses who are offering insurance by providing up to 25 percent of the cost of health coverage credited to the employer, as long as that employer meets the eligibility requirements for ABC and carries a tax liability. The employer's package can be a traditional insurance package or some sort of health savings account.

"Pennsylvania will be one of the first states in the nation to provide financial assistance to our small employers who are doing the right thing by providing insurance to their employees," the Governor said.

The Governor cited a recent study that showed a decrease in the total number of employers providing health insurance in Pennsylvania is especially troublesome. Between 2000 and 2006, more workers in Pennsylvania lost employer-provided health insurance than workers in any other state, except California.

"Public opinion polls show increasing anxiety about the current health system, as more employers shed coverage benefits and premium costs outpace inflation each year," Governor Rendell said. "If the remaining key components of the Prescription for Pennsylvania are not enacted, especially ABC and the insurance reforms, even more working Pennsylvanians are likely to lose coverage.

"That's why I favor grants that help small businesses cover their health care costs. It will help stem the erosion of employer-provided health care."

PA ABC will also help eligible small employers who do not offer health benefits. By signing up for ABC, the employer, the employee and the commonwealth will share the cost of the insurance. The employer will be required to contribute at least 50 percent of the total monthly cost for each employee or not less than $150 dollars, the employee will have a monthly premium of up to $60 per month depending on their income and the application for subsidy.

Health coverage under PA ABC will be offered through private insuranc
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SOURCE Pennsylvania Office of the Governor
Copyright©2008 PR Newswire.
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