Geisinger and Risant Health are asking the Pennsylvania Insurance Department to lower the amount of money they have to keep in reserves, which could give the health system access to another $100 million. SEIU Healthcare, the state’s largest healthcare workers’ union, wants to know what Geisinger will do with that money.
Matthew Yarnell, SEIU's president, said the union wants Geisinger to use the money gained from their insurance modification request to freeze rising health insurance premiums.
“We don't want them to be just getting modifications without accountability on holding the line and making sure that people can afford and access health care in central Pennsylvania and northeastern Pennsylvania," Yarnell said.
When Risant and Kaiser took over Geisinger in 2024, the Pennsylvania Insurance Department ordered the health systems to increase their risk-based capital requirement to a rate between 350-400%. That number is based on health systems' size and the riskiness of their financial assets and operations. Geisinger is looking to lower that percentage to 300%.
In its request to the state, Geisinger said it needs to free up that money because of new rural health care challenges from the “One Big Beautiful Bill Act.” Geisinger also said Pennsylvania law would prohibit using this money to lower premiums.
Geisinger said they plan to "allocate additional funds toward delivering high quality care."
"This may include expanding access to preventive services, improving care coordination for chronic conditions, and enhancing telehealth capabilities to reach members in rural and underserved areas," Geisinger said in its request to the state.
Bernie Gallagher is the executive director of the Keystone Research Center, an economic think tank based in Harrisburg.
“The question goes as to whether that $100 million goes to reducing costs borne by everyday people, or does it actually enhance the organization's abilities to generate profit?” Gallagher asked.
SEIU Healthcare is part of a broader community coalition, including Action Together NEPA, calling on Geisinger and Risant to hold a public hearing explaining what they'll do with the $100 million.
The Pennsylvania Insurance Department is still reviewing the health system’s request.
