Healthcare Reform - New State High Risk Pools
States had until April 30, 2010 to notify Washington if they plan to participate in one of the first government programs to be launched under the new health care reform law - high-risk pools for the uninsured.
At the deadline the states that declined to administer risk pools are Alabama, Delaware, Florida, Georgia, Hawaii, Idaho, Indiana, Louisiana, Minnesota, Mississippi, Nebraska, Nevada, North Dakota, South Carolina, Tennessee, Texas, Virginia and Wyoming, according to The Health and Human Services Department.
16 of the 18 States are run by Republican Governors and 2 by Democratic Governors.
Why did these states opt out of this glorious offering? Because: 1.
Although there is $5 Billion allocated for distribution to the participating states they are being asked to participate in the actual costs associated with the program.
2.
The program is slated to run through 2013 when the new provision requiring health insurance carriers to cover everyone regardless of their condition begin but there is no guarantee this will occur.
This leaves the states vulnerable to additional costs and the potential of having to revamp or shut down the program all together.
The new high-risk program is essentially insurance for individuals who have pre-existing conditions and are either uninsurable or expensive to insure.
So why would the states choose to opt out? Here are a few reasons: 1.
The new program is only meant to bridge the gap from where we are now to 2014 when health plans will have to accept everyone no matter their condition.
States could be liable if the new law is not implemented on time or not at all.
2.
The proposed risk pools charge the same premiums that healthy people pay.
Most existing high risk pools currently in place at the state level charge between 125% -200% of market rates to cover the potential risk.
3.
The proposed risk pools will have no waiting period.
Existing high risk pools have waiting periods before someone could participate of 3 months or longer to protect against an individual waiting to jump in until they have a serious condition requiring medical care.
4.
The Proposed risk pools will only cover those individuals who have been without any health insurance coverage for longer than 6 months.
Those who have been responsible and continuing coverage through COBRA, an existing high risk pool, or their own private health insurance plan are out of luck.
The proposed risk pools will only be for those who have either been unable to get coverage or to reward those who have chosen not to pay for their own coverage.
We do not want a system that encourages people to be free-loaders leaving others to pick up the tab.
This is why the main function of the pool should be to enable people who have been continuously insured to receive some relief.
I would encourage you to read Ten Small-Scale Reforms For Pre-existing Chronic Conditions By John Goodman to learn a much better alternative to high risk pools for people with preexisting conditions.
At the deadline the states that declined to administer risk pools are Alabama, Delaware, Florida, Georgia, Hawaii, Idaho, Indiana, Louisiana, Minnesota, Mississippi, Nebraska, Nevada, North Dakota, South Carolina, Tennessee, Texas, Virginia and Wyoming, according to The Health and Human Services Department.
16 of the 18 States are run by Republican Governors and 2 by Democratic Governors.
Why did these states opt out of this glorious offering? Because: 1.
Although there is $5 Billion allocated for distribution to the participating states they are being asked to participate in the actual costs associated with the program.
2.
The program is slated to run through 2013 when the new provision requiring health insurance carriers to cover everyone regardless of their condition begin but there is no guarantee this will occur.
This leaves the states vulnerable to additional costs and the potential of having to revamp or shut down the program all together.
The new high-risk program is essentially insurance for individuals who have pre-existing conditions and are either uninsurable or expensive to insure.
So why would the states choose to opt out? Here are a few reasons: 1.
The new program is only meant to bridge the gap from where we are now to 2014 when health plans will have to accept everyone no matter their condition.
States could be liable if the new law is not implemented on time or not at all.
2.
The proposed risk pools charge the same premiums that healthy people pay.
Most existing high risk pools currently in place at the state level charge between 125% -200% of market rates to cover the potential risk.
3.
The proposed risk pools will have no waiting period.
Existing high risk pools have waiting periods before someone could participate of 3 months or longer to protect against an individual waiting to jump in until they have a serious condition requiring medical care.
4.
The Proposed risk pools will only cover those individuals who have been without any health insurance coverage for longer than 6 months.
Those who have been responsible and continuing coverage through COBRA, an existing high risk pool, or their own private health insurance plan are out of luck.
The proposed risk pools will only be for those who have either been unable to get coverage or to reward those who have chosen not to pay for their own coverage.
We do not want a system that encourages people to be free-loaders leaving others to pick up the tab.
This is why the main function of the pool should be to enable people who have been continuously insured to receive some relief.
I would encourage you to read Ten Small-Scale Reforms For Pre-existing Chronic Conditions By John Goodman to learn a much better alternative to high risk pools for people with preexisting conditions.
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