Advocates request hearing about Geisinger-Risant insurance condition change request

The Daily Item

A coalition including health care workers is asking the state's insurance department for a public hearing to review a request from Geisinger and Risant Health to reduce the amount of money the systems need to hold in reserve.

In January, Geisinger and Risant proposed a modification to their original agreement with the Pennsylvania Insurance Department, reducing the capital requirements needed for Geisinger's insurance businesses, Geisinger Health Plan, Geisinger Quality Options and Geisinger Indemnity Insurance.

As part of the original 2024 agreement, the Pennsylvania insurance commissioner required GHP to maintain risk-based capital of at least 350% and the other two businesses to maintain of at least 400% for five years after the acquisition. The 2024 agreement required all three to hold risked-based capital of at least 350% until 2039. In the January filing, the organizations proposed a modification to at least 300% for the first 15 years.

Geisinger CEO Dr. Terry Gilliland told The Philadelphia Inquirer that the revision would free up $100 million, which could go toward "high-quality, patient-centered care," and be used for projects such as the $800 million tower being built at Geisinger's main campus in Danville.

Watchdog groups are asking for a hearing about a change Geisinger-Risant hopes to make concerning its insurance.

Progressive nonprofit Action Together NEPA and union SEIU Healthcare PA have called for a public hearing modification request.

The advocates call on Kaiser Permanente — the parent company of Risant — to use its $82 billion in net worth to freeze insurance costs in Pennsylvania and more information on what Geisinger and Risant plan to do with the $100 million made available if the request is approved.

"Our request to the Pennsylvania Insurance Department is clear: we need transparency, clarity, and accountability from Geisinger-Risant and Kaiser, and we need a freeze on health care costs for the hardworking residents of Northeast Pennsylvania," said Alisha Hoffman-Mirilovich, executive director of Action Together NEPA, said "In the past decade, we've seen insurance and health care corporations become much bigger and more powerful, gaining a greater and greater ability to drive up prices.

"Working people are suffering right now, and the Insurance Department should step up to make sure that these huge corporations are using their vast resources to hold down costs, not continue raising them."

Two years ago, Geisinger became the inaugural member of Risant Health. Health system officials said at that point that within five years, between five and six systems would fall under the Risant umbrella. In late December 2024, North Carolina-based Cone Health became the second system to join. The two systems remain the only systems participating.

Coalition members say it is important to freeze health insurance costs because nearly 600,000 Pennsylvania residents could lose health care coverage due to federal cuts in Medicaid and Affordable Care Act funding.

"As a nurse, I want to make sure both my community and all my fellow health care workers have access to affordable care so we can be there for our patients," James Taylor, a registered nurse at Geisinger Wyoming Valley Medical Center, said. "I see firsthand every day how our patient population needs more care, but is struggling to afford that care. I also see the sad irony of Geisinger employees coming to work every day to provide care to others, but having a tough time affording care for themselves and their families."