Pennsylvania governor touts cost control in health reform plan

Gov. Ed Rendell says he can affordably increase insurance access if the state can put the brakes on health spending.

By Doug Trapp, AMNews staff. June 11, 2007.

Washington -- Controlling health care costs is the key to health system reform, Pennsylvania Gov. Ed Rendell said last month in his keynote speech at a Kaiser Family Foundation event in Washington, D.C. Rendell's philosophy is reflected in his reform plan, Prescription for Pennsylvania.

The package aims to expand access by creating Cover All Pennsylvanians, a state-subsidized, privately run insurance pool targeted to small businesses, employees and the uninsured. All but about 185,000 of the state's 767,000 uninsured adults would gain immediate access to coverage, Rendell estimates.

He proposes to keep the price tag in check by eliminating up to 85% of the $7.6 billion in annual costs associated with medical errors, hospital infections and uncompensated care. He also would save money by expanding the use of allied health professionals.

Prescription for Pennsylvania's insurance plan will need $1.37 billion in new revenue, he said. The bill would be split between employer and employee contributions and the state and federal governments.

The Pennsylvania Medical Society has some concerns about the allied health professionals provisions, but the governor has provided a good starting point for major health system reform, said Mark Piasio, MD, MBA, the organization's president. "There's a lot in the bill to like."

After his speech, Rendell spoke to a small group of reporters, including one from American Medical News.