Having a
pre-existing health condition can make it difficult, even
impossible, to find affordable health insurance. But the U.S.
Department of Health
and Human Services (HHS) says it is taking steps to reduce
premiums and make it easier for Americans to enroll in the
Pre-Existing Condition Insurance Plan.
Premiums for the federally-administered Pre-Existing Condition Insurance Plan (PCIP) will drop as much as 40 percent in 18 states, and eligibility standards will be eased in 23 States and the District of Columbia to ensure more Americans with pre-existing conditions have access to affordable health insurance.
The Pre-Existing Condition Insurance Plan was created under the Affordable Care Act, derisively known as Obamacare, and serves as a bridge to 2014 when insurers will no longer be allowed to deny coverage to people with any pre-existing condition, like cancer, diabetes, and asthma.
“The Pre-Existing Condition Insurance Plan changes lives, and in many cases, literally saves lives,” said HHS Secretary Kathleen Sebelius. “These changes will decrease costs and help insure more Americans.”
In 23 states and the District of Columbia, the PCIP program is federally-administered. The remaining states operate their own PCIP programs using federal funds provided by the Affordable Care Act.
40% decrease
PCIP premiums will drop as much as 40 percent in 18 states where the federally administered PCIP operates. These premium decreases help bring PCIP premiums closer to the rates in each state’s individual insurance market; in the six states where PCIP premiums were already well-aligned with state premiums, premiums will remain the same.
The changes will also make enrolling in the federally-administered PCIP in 23 states and the District of Columbia easier.
Starting July 1, 2011, people applying for coverage can simply provide a letter from a doctor, physician assistant, or nurse practitioner dated within the past 12 months stating that they have or had a medical condition, disability, or illness.
Applicants will no longer have to wait on an insurance company to send them a denial letter. This option became available to children under age 19 in February, and this pathway is being extended to all applicants regardless of age. Applicants will still need to meet other eligibility criteria, including that they are U.S. citizens or residing in the U.S. legally and that they have been without health coverage for six months.
To further enhance the program, beginning this fall, HHS will begin paying agents and brokers for successfully connecting eligible people with the PCIP program.
