HARRISBURG, Pa. (AP) — A judge said Thursday that he will not stop the administration of Gov. Tom Corbett from dipping into money that in the past had helped pay for Pennsylvania's now-shuttered health care plan for more than 41,000 low-income adults.
Commonwealth Court Senior Judge James R. Kelley denied a motion to order the state treasurer to hold on to Pennsylvania's annual deposit of money from a 1998 settlement with major cigarette manufacturers.
The underlying lawsuit, filed last month and still pending, alleges that tobacco settlement money set aside for the plan known as adultBasic has been unlawfully diverted for other purposes.
Recommended For You
The suit asks the court to force Corbett to resurrect adultBasic. The plaintiffs are 75 people who were covered by adultBasic before Corbett terminated it Feb. 28.
"Despite today's ruling, we remain optimistic that we will be successful in restoring the adultBasic program," said plaintiffs' lawyer David Senoff. "Today's result does not change the fact that we believe that the state inappropriately eliminated a successful program that provided affordable health care coverage to tens of thousands of working Pennsylvanians without using any taxpayer money. We look forward to making our case in court."
Kelly's one-page order did not explain why he denied the motion. The Corbett administration has said the suit has no merit, and a spokesman said Thursday evening that it would continue with its plans to use the money.
AdultBasic was to cost $164 million in this fiscal year, but funding fell about $55 million short, according to state officials. Corbett, a Republican, has said adultBasic was not financially sustainable and that he had no choice but to end it as his new administration addresses a projected multibillion-dollar deficit in the fiscal year that begins July 1.
While some Democratic lawmakers made proposals to save adultBasic, the Republican-controlled Legislature took no action to save it. The state's Blue Cross/Blue Shield insurers, which have paid for the lion's share of adultBasic's costs in recent years, decided against continuing that commitment.
AdultBasic began in 2002 as a basic health insurance program for low-income working adults who weren't poor enough to qualify for Medicaid and weren't old enough to qualify for Medicare. Premiums were $36 per month on average.
It didn't cover dental needs or prescription drugs, but it did pay the cost of major surgeries and was considered better coverage than the subsidized plans run by the Blue Cross/Blue Shield insurers.
Senate Minority Leader Jay Costa, D-Allegheny, said this week 30,000 of the former adultBasic enrollees remain without insurance coverage.
Copyright 2011 The Associated Press.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.