Group Health to Give $2 Million for Low-Income Children's Health Coverage and Access
Posted on: Sunday, 22 October 2006, 09:00 CDT
SEATTLE, Oct. 22 /PRNewswire/ -- Group Health today announced it will give a total of $2 million to support health care coverage for certain low-income children in Washington state. It is the largest single contribution of funds in the 59-year history of the consumer-governed health care system.
"With nearly 600,000 people in Washington State lacking access to coverage, we've chosen to focus on children because they're our future," said Scott Armstrong, Group Health president and CEO. "That so many lack access to health care is socially indefensible and morally wrong."
Half of Group Health's contribution, $1 million, will support King County's innovative, ready-to-implement, Child Health Initiative. It will jump-start fundraising for a gap-insurance program targeting children in the county who don't qualify for existing assistance programs, even though their families can't afford health care coverage for them.
An additional $1 million will be placed in the Group Health Community Foundation to support programs designed to provide access to care and coverage for children in other areas of the state served by Group Health. These funds will be accessed by grant request beginning in early 2007.
"Last week we faced the disappointing news that we would not be able to fund Phase II of our Child Health Initiative until 2008," said King County Executive Ron Sims. "Thanks to Group Health's generous contribution, covering uninsured children in 2007 is a reality within our grasp. Group Health has shown tremendous leadership, and we hope others will follow. A fundamental value throughout King County has to be that when we go to bed at night, we rest assured that all children have access to quality health services," Sims added.
"King County's approach aligns with the goals and recommendations of the Puget Sound Health Alliance," explained Armstrong. "It emphasizes appropriate preventive services and effective, evidence-based care over a lifetime -- hallmarks of the Group Health model."
Group Health will make an immediate $400,000 contribution to King County's program, with an anticipated start in July, 2007. An additional $600,000 contribution is earmarked as a matching challenge grant, to encourage other companies to follow Group Health's lead. Matching contributions will be critical to the program's success. An additional three million dollars, above King County funds and Group Health's contribution, will be needed to fund the program during it's first few years of operation.
"Because of our strong financial position this year, we're able to significantly increase our community benefit commitments," said Armstrong. "Our investments in community health are intended to ultimately reduce overall costs of care, both for our members and our corporate and institutional customers," he added.
Each year, Group Health commits more than $40 million for community and public health programs, not including the grant-making activities of the Group Health Community Foundation.
Recently, the Cooperative announced it would drastically cut rates that low-income enrollees in the state-subsidized Basic Health program pay for Group Health coverage in 2007. It has also reduced rate increases for most of its health care plans in 2007.
"We want to serve as a catalyst to solve children's health issues," explained Armstrong. "Our elected officials and government leaders are taking important steps to put children's health front and center. Now Group Health is pitching in, and we encourage other companies to join us."
Group Health Cooperative
Opened in 1947, Group Health is a consumer-governed, nonprofit health care system that coordinates care and coverage. Based in Seattle, Group Health and its subsidiary health carriers, Group Health Options, Inc. and KPS Health Plans, serve more than 568,000 members in Washington and Idaho. Group Health's commercial and Medicare plans have received the top rating of "Excellent" from the National Committee for Quality Assurance (NCQA).
Group Health encompasses medical and specialty centers, hospitals (including a full service community hospital), a nationally recognized research center, and a charitable foundation. Group Health and Group Health Permanente (its multi-specialty medical group practice) combined employ more than 9,000 staff.
Please visit the virtual newsroom on our Web site, http://www.ghc.org/ under
"Newsroom."
Group Health
CONTACT: Katie McCarthy of Group Health, +1-206-448-2149, or 24 hourmedia pager, +1-206-994-9288; or Brooke Bascom, Office of King Co. ExecutiveRon Sims, +1-206-296-3822
Web site: http://www.ghc.org/
Source: PRNewswire
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