Providence Service Corporation Comments on Health Care Reform Passage
TUCSON, Ariz., March 22 /PRNewswire-FirstCall/ -- The Providence Service Corporation (Nasdaq: PRSC) today commented on last night's historical congressional action. The U.S. House of Representatives passed the Senate version of the health care reform bill as well as a reconciliation bill making some modifications to the original Senate act, called the Health Care and Education Affordability Reconciliation Act of 2010. The bills make a number of sweeping changes to Medicaid and insurance coverage for America's poor, a mission Providence has embraced since its inception in 1997.
Included in the bill are:
- An increase in Medicaid eligibility to 133% of the federal poverty level, estimated to bring an additional 15 million into the Medicaid system. This enrollment increase will be paid for entirely by the federal government and will not require any additional state funds until the year 2016.
- Incentives for states to develop home and community based services.
- The Community Living Assistance Services and Supports Act (CLASS), which mandates that states develop incentives for community and home based programs, requires outcome data, and provides preferential treatment to community health centers.
- Increased funds to community health centers.
- Establishment of the Community Health First option as an alternative to institutional care mandate in April 2011.
"We have dedicated ourselves to providing home based services to Americas' indigent and have worked tirelessly to demonstrate the value and efficacy of our programs," said Fletcher McCusker, Chairman and CEO. "For Congress to pass legislation enhancing the funding and commitment to community based care is truly a historic moment."
Now that the Senate Health Reform Bill has passed the House, it will go to President Obama to be signed into law. The package of fixes to the bill will go before the Senate, where debate will begin Tuesday.
The Providence Service Corporation, through its owned and managed entities, provides home and community based social services and non-emergency transportation services management to government sponsored clients under programs such as welfare, juvenile justice, Medicaid and corrections. Providence does not own or operate beds, treatment facilities, hospitals or group homes, preferring to provide services in the client's own home or other community setting. The Company provides a range of services through its direct entities to approximately 62,200 clients through 734 active contracts at December 31, 2009, with an estimated 7.7 million individuals eligible to receive the Company's non-emergency transportation services. Combined, the Company has an approximately $1 billion book of business including managed entities.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "demonstrate," "expect," "estimate," "anticipate," "should" and "likely" and similar expressions identify forward-looking statements. In addition, statements that are not historical should also be considered forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Such forward-looking statements are based on current expectations that involve a number of known and unknown risks, uncertainties and other factors which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. These factors include, but are not limited to the global credit crisis, capital market conditions, and other risks detailed in Providence's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2009. Providence is under no obligation to (and expressly disclaims any such obligation to) update any of the information in this press release if any forward-looking statement later turns out to be inaccurate whether as a result of new information, future events or otherwise.
SOURCE The Providence Service Corporation