Advocacy Groups Call for Review of Geisinger-Risant Insurance Changes in Pennsylvania

In Scranton, Pennsylvania, advocacy organizations are calling for a public review of a proposed change to Geisinger-Risant's insurance operations. Progressive nonprofit Action Together NEPA and SEIU Healthcare PA are urging the Pennsylvania Insurance Department to hold a hearing on the company’s request to lower its risk-based capital requirements. This change would reduce the financial reserves that Geisinger-Risant insurance units must maintain.

The groups have made three primary requests to the Insurance Department: hold a public hearing for transparency on the modification request, ensure Kaiser Permanente keeps insurance costs stable for Pennsylvania residents, and investigate the intended use of the $100 million that would become available if the capital reduction is approved. They argue that these funds could aid Kaiser’s $2 billion local investment commitment, following its acquisition of Geisinger in 2024.

Currently, Geisinger's insurance entities must maintain specific capital levels, with Geisinger Health Plan required at 350% of risk-based capital, and Geisinger Indemnity Insurance Co. and Geisinger Quality Options at 400% for five years—a stipulation from Kaiser’s initial Geisinger acquisition. The proposed modification reduces this to 300%, which could influence market dynamics.

The advocacy groups emphasize that both Geisinger and Kaiser possess extensive resources, citing Geisinger’s $9 billion revenue and Kaiser’s $127 billion revenue in 2025. They argue these resources should help mitigate insurance rate hikes for consumers. Pointing to executive compensation concerns, the coalition highlights disparities between executive pay and consumer affordability, referencing multimillion-dollar rewards reported by ProPublica.

The coalition underscores the financial burden on residents, with healthcare affordability becoming a pressing concern in Northeastern and North Central Pennsylvania. Rising insurance premiums, notably under the Affordable Care Act, have intensified these challenges for policyholders.

Finally, the coalition stresses the necessity to manage health insurance costs amid potential federal funding cuts that could impact nearly 600,000 residents in Pennsylvania. They worry that releasing additional funds to Geisinger-Risant may not benefit consumers but could fuel market consolidation and increased pricing. As nonprofit organizations, Geisinger, Risant, and Kaiser enjoy certain tax exemptions, further complicating their financial strategies and community obligations.