Highmark to Fund Extension of adultBasic

Highmark announced Monday, Sept. 13, that the company has agreed to fund the state’s adultBasic subsidized health insurance program for the next six months.

adultBasic is the state-run health insurance program for low-income workers whose employers don’t offer health insurance.

Despite ongoing negotiations over the amount of the insurers’ payments, Highmark said it would provide approximately $32 million in funding through June 30, 2011.

No comment was available from the other Blues insurers in the state, but media sources said they also have agreed to fund their share for the first six months of 2011.

The issue of adultBasic funding threatened to deadlock the state budget negotiations until the companies agreed to fund a six-month extension in addition to their commitments under the current agreement, which expires in December.

Highmark said it supplied $300 million between 2005 and 2009 for adultBasic funding in addition to $200 million for community programs under its agreement with Gov. Ed Rendell, later cemented by legislation.

Former Insurance Commissioner Joel Ario said in July that the extension plan means no new enrollees would be accepted.