Healthcare Reform - New State High Risk Pools

States had until April 30, 2010 to notifymatter their condition. States could be liable if the
Washington if they plan to participate in one ofnew law is not implemented on time or not at all.
the first government programs to be launched2. The proposed risk pools charge the same
under the new health care reform law - high-riskpremiums that healthy people pay. Most existing
pools for the uninsured. At the deadline the stateshigh risk pools currently in place at the state level
that declined to administer risk pools are Alabama,charge between 125% -200% of market rates to
Delaware, Florida, Georgia, Hawaii, Idaho, Indiana,cover the potential risk.
Louisiana, Minnesota, Mississippi, Nebraska, Nevada,3. The proposed risk pools will have no waiting
North Dakota, South Carolina, Tennessee, Texas,period. Existing high risk pools have waiting periods
Virginia and Wyoming, according to The Healthbefore someone could participate of 3 months or
and Human Services Department. 16 of the 18longer to protect against an individual waiting to
States are run by Republican Governors and 2 byjump in until they have a serious condition
Democratic Governors.requiring medical care.
Why did these states opt out of this glorious4. The Proposed risk pools will only cover those
offering? Because:individuals who have been without any health
1. Although there is $5 Billion allocated forinsurance coverage for longer than 6 months.
distribution to the participating states they areThose who have been responsible and continuing
being asked to participate in the actual costscoverage through COBRA, an existing high risk
associated with the program.pool, or their own private health insurance plan are
2. The program is slated to run through 2013out of luck. The proposed risk pools will only be
when the new provision requiring health insurancefor those who have either been unable to get
carriers to cover everyone regardless of theircoverage or to reward those who have chosen
condition begin but there is no guarantee this willnot to pay for their own coverage.
occur. This leaves the states vulnerable toWe do not want a system that encourages
additional costs and the potential of having topeople to be free-loaders leaving others to pick
revamp or shut down the program all together.up the tab. This is why the main function of the
The new high-risk program is essentially insurancepool should be to enable people who have been
for individuals who have pre-existing conditionscontinuously insured to receive some relief.
and are either uninsurable or expensive to insure.I would encourage you to read Ten Small-Scale
So why would the states choose to opt out?Reforms For Pre-existing Chronic Conditions By
Here are a few reasons:John Goodman to learn a much better alternative
1. The new program is only meant to bridge theto high risk pools for people with preexisting
gap from where we are now to 2014 whenconditions.
health plans will have to accept everyone no