Advocacy Groups Demand Hearing on Geisinger-Risant Insurance Changes

In Scranton, Pennsylvania, advocacy groups are demanding a public hearing on a proposal by Geisinger-Risant to alter its insurance regulations. Organizations such as Action Together NEPA and SEIU Healthcare PA have officially requested the Pennsylvania Insurance Department to host a hearing. This proposal, submitted on January 16, aims to reduce Geisinger-Risant's risk-based capital requirements, potentially allowing the insurer to lower reserve funds.

The coalition's requests to the Insurance Department emphasize public transparency through a hearing and ensuring that Kaiser Permanente utilizes its net worth to stabilize health insurance costs for Pennsylvania consumers. They seek clarity on how the $100 million in potential funds, accessible upon approval, will be allocated. This highlights the belief that freezing costs aligns with Kaiser's commitment to investing locally following its 2024 acquisition of Geisinger.

Alisha Hoffman-Mirilovich, Executive Director of Action Together NEPA, stressed the importance of transparency, stating, "We need transparency, clarity, and accountability from Geisinger-Risant and Kaiser." She highlighted the impact of rising insurance costs on working residents and called for regulatory intervention.

The proposal would alter existing terms set by the Insurance Department during Kaiser's acquisition of Geisinger. Currently, Geisinger Health Plan is required to maintain risk-based capital at 350%, while Geisinger Indemnity Insurance Co. and Geisinger Quality Options must maintain a 400% level. This change would adjust the requirement to 300% for all entities.

Financially, Geisinger showed robust revenue and profits in 2025, with Kaiser reporting significant financial gains, including billions in net assets. Concerns about executive compensation, highlighted by ProPublica, point to high payouts during restructuring, drawing attention from the coalition.

Pennsylvania may face upstream pressures due to federal changes in Medicaid and the Affordable Care Act funding, potentially affecting hundreds of thousands of residents. Advocacy groups argue that the market power of large insurance carriers like Geisinger-Risant raises costs.

James Taylor, a nurse at Geisinger Wyoming Valley Medical Center, underscored the need for affordability for both healthcare workers and patients. He urged the Insurance Department to ensure accountability and stabilize costs, reflecting a broader industry concern over market consolidation and potential premium increases.