Penn State University, Penn State Milton S. Hershey Center and Highmark Inc. announced a 10-year, $25 million agreement today, in which Highmark will help fund research and construction for the free-standing Penn State Children's Hospital at Hershey Medical Center.

"A big part of our mission is to serve the community," Leilyn Perri, spokesman for Highmark, a health insurance company, said.

Perri said children's medical care is a big concern for Highmark.

Highmark will be funding long-term wellness research, Penn State spokeswoman Annemarie Mountz said, adding "this is a good thing, not only for the university, but for people in general."

Plans for the Children's Hospital began in 2005 and includes the Pediatric Cancer Pavilion, to which the Interfraternity Council/Panhellenic Dance Marathon pledged $10 million over six years, starting in 2004.

Penn State staff, dependants and retirees will be covered by Highmark insurance beginning January 1, 2008, according to a press release.