U.S. Rep. Phil English, speaking Tuesday at UPMC Horizon, Farrell, outlined a $35 billion Medicare bill that he said lowers out-of-pocket hospital costs while improving benefits.

Larry Heinike, president and CEO of UPMC Horizon, said the bill could mean $1.5 million over three years for hospitals in Greenville and Farrell as reimbursements for Medicare procedures increase.

The plan passed the House Friday. English expected President Clinton to sign the bill this week.

English said the bill "addresses some funding issues in the Medicare system" and makes it "sound for the next couple years."

"This is not the end of the process. It is a starting point," he added.

The $35 billion package includes more than $6 billion for programs such as SecurityBlue, English said.

About 80 percent of western Pennsylvanians who joined a Medicare HMO have a SecurityBlue plan, according to Highmark Blue Cross Blue Shield in Pittsburgh. In Mercer County, about 5,400 seniors have a SecurityBlue product.

"We recognize the importance of these plans. But we did not write the companies a blank check. The law we passed requires Highmark to use the money to either cut premiums or improve benefits," English said.

Earlier this year, Highmark said those in Mercer, Crawford and Erie counties who have the SecurityBlue Basic plan would see their rates rise from $54 to $77 a month, while those in surrounding Lawrence and Butler counties would pay a monthly premium of $12.

The Health Care Finance Administration has paid SecurityBlue less for each enrollee in this three-county area than it has for those in surrounding counties. HCFA’s payments for SecurityBlue in this three-county area are $461 a month, compared to $619 a month in surrounding counties. As a result, the county’s premium-holders have been saddled with premium hikes and fewer benefits.

English said the bill does not guarantee that premiums would go down. If Highmark accepts a cut of the $6 billion, however, the money would be used to cut premiums or increase benefits.

English said the plan would raise Medicare payments and allows areas currently below the national average to negotiate higher reimbursements. The bill also encourages other health plans to enter the three-county area.

Other highlights of the plan, according to English: