GREENSBURG, Pa. -- There are about 800,000 people in Pennsylvania who don't have health insurance, but Gov. Ed Rendell said he has a plan to change that.

Rendell announced his plan in Greensburg on Wednesday. The plan involves reimbursing small businesses for a portion of their costs if they step up and contribute to the coverage plans of their employees.

The Pepperwood Grille in Greensburg has 45 employees. Over the last four years, they've replaced all 45 employees three times because, according to the owner, he can't afford to pay for their health insurance.

"We absolutely would be able to keep more people when we're competing with chains that do offer health care, even in a limited capacity," said owner Pete Wast.

Wast said he liked what he heard from Rendell during a speech at Westmoreland Community Action.

Rendell's plan is called Adult Basic Care or ABC. Simply put, employees can get it for about $60 a month if their employers will chip in $150 a month. And if they do, the state will reimburse the small business for about a quarter of their costs.

An additional 10-cent tax on cigarettes and a new tax on smokeless tobacco and cigars would help the state pay for the plan.

"Businesses, particularly small businesses, are drowning in health care premiums, so what do they do? They eliminate coverage. They have no choice," said Rendell.

Critics said Rendell has yet to spell out how much the plan would cost and how it would be administered. They also said it would bring coverage to only about one-third of those who need it.

Republicans said they are working on a plan that would allow hundreds of small businesses to come together and by a group health insurance plan.

In the meantime, the governor's plan has passed the House. He's pushing for a vote in the Senate soon.

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