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                                                      PRINTER'S NO. 2342

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1860 Session of 1997


        INTRODUCED BY McCALL, COY, THOMAS, GEORGE, COLAIZZO, COWELL,
           CURRY, BELARDI, OLASZ, BEBKO-JONES, STURLA, SCRIMENTI,
           SHANER, BATTISTO, ORIE, TIGUE, LEVDANSKY, HERMAN, MELIO,
           BLAUM, JOSEPHS, GRUITZA, STABACK, WALKO, CORRIGAN, HALUSKA,
           MUNDY, VEON, BELFANTI, SURRA, ITKIN, ROBERTS, RAMOS, TRICH
           AND MANDERINO, OCTOBER 6, 1997

        REFERRED TO COMMITTEE ON AGING AND YOUTH, OCTOBER 6, 1997

                                     AN ACT

     1  Amending the act of December 2, 1992 (P.L.741, No.113), entitled
     2     "An act providing a comprehensive plan for health care for
     3     uninsured children; providing for medical education
     4     assistance; making appropriations; and making repeals,"
     5     further providing for children's health care; and making a
     6     repeal.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Section 701(d), (e) and (o) of the act of
    10  December 2, 1992 (P.L.741, No.113), known as the Children's
    11  Health Care Act, are amended to read:
    12  Section 701.  Children's health care.
    13     * * *
    14     (d)  Free insurance.--The provision of health care insurance
    15  for eligible children shall be free to a child under [six] 19
    16  years of age whose family income is no greater than [185%] 200%
    17  of the Federal poverty level [and shall be free to a child six
    18  years of age but less than the maximum program age whose family

     1  income is no greater than 100% of the Federal poverty level,]
     2  where the maximum program age shall be:
     3         (1)  13 years of age for the period ending September 30,
     4     1993;
     5         (2)  14 years of age for the period ending September 30,
     6     1994;
     7         (3)  15 years of age for the period ending September 30,
     8     1995;
     9         (4)  16 years of age for the period ending September 30,
    10     1996; [and]
    11         (5)  17 years of age [thereafter.] for the period ending
    12     September 30, 1997; and
    13         (6)  18 years of age, until the 19th birthday, for the
    14     period ending September 30, 1998.
    15     (e)  Subsidized insurance.--
    16         (1)  The provision of health care insurance for an
    17     eligible child who is under six years of age and whose family
    18     income is greater than [185%] 200% of the Federal poverty
    19     level but no greater than 235% of the Federal poverty level
    20     may be subsidized by the fund at a rate not to exceed 50%.
    21         (2)  The difference between the pure premium of the
    22     minimum benefit package in subsection (l)(7) and the subsidy
    23     provided under this subsection shall be the amount paid by
    24     the family of the eligible child purchasing the minimum
    25     benefit package.
    26         (3)  The family of an eligible child whose family income
    27     makes the child eligible for free or subsidized care but who
    28     cannot receive care due to lack of funds in the fund may
    29     purchase coverage for the child at cost.
    30     * * *
    19970H1860B2342                  - 2 -

     1     (o)  Review.--After the first year of operation and
     2  periodically thereafter, the management team shall review
     3  enrollment patterns for both the free insurance program and the
     4  subsidized insurance program. The management team shall consider
     5  the relationship, if any, among enrollment, enrollment fees,
     6  income levels and family composition. Based on the results of
     7  this study and the availability of funds, the management team is
     8  authorized to adjust the maximum income ceiling for free
     9  insurance and the maximum income ceiling for subsidized
    10  insurance by regulation. In no event, however, shall the maximum
    11  income ceiling for free insurance be raised above [185%] 200% of
    12  the Federal poverty level, nor shall the maximum income ceiling
    13  for subsidized insurance be raised above 235% of the Federal
    14  poverty level. Changes in the maximum income ceiling shall be
    15  promulgated as a final-form regulation with proposed rulemaking
    16  omitted in accordance with the act of June 25, 1982 (P.L.633,
    17  No.181), known as the Regulatory Review Act.
    18     Section 2.  Section 3101 of the act is repealed.
    19     Section 3.  This act shall take effect immediately.








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