Latest Developments on the CA Federal High Risk Insurance Pool
Posted on Wed, Jun 23, 2010
Last week, administrators in California came to some early decisions regarding the costs and deductibles of the high risk medical insurance pool that will be established on September 1, 2010. The intention is to administer that federal program simultaneously with the CA high risk medical insurance pool that is already in existence.
There are differences in prices between the state pool that's already in existence and the federally subsidized high risk pool. For example, a woman who lives in San Francisco who is 50 years old would pay a monthly premium of $915 for the existing state pool coverage, and only $575 monthly for the federal plan.
It is estimated that the subsidy from the federal government will aid about 16,000-44,000 residents in California. These numbers will not be finalized until they see how sick these people are and the medical costs associated with caring for them.
It was also decided that there will be a $1500 annual deductible on the federal medical plan.
These high risk medical insurance pools are meant to bridge the time period between now and when insurers will no longer be able to decline applicants because of pre-existing conditions in 2014.
$5 billion has been put aside for these high risk insurance pools, with California receiving about $761 million. It is estimated that this money will help to cover about 200,000 for a period of 3 years. All of the states are stating that it is not enough to last, and not enough to help the many 50 million uninsured Americans.
California's existing high risk pool has a waiting list because it caps enrollment at 7,100 Californians. The new federal pool could have a waiting list as well.
The federal high risk pool is only for people that have not had any insurance for the past 6 months, and nobody knows if and when a waiting list will be formed.