The federal government said Friday it will cut insurance premiums by nearly 20% for people in high-risk pools, a program under the health overhaul that insures those with pre-existing health conditions.
The program was one of the first parts of the health law passed in March to go into effect, but it has had lower-than-projected enrollment, in part because the policies are beyond the means of many people.
The premium cuts apply to high-risk pools that the federal government operates in 23 states and the District of Columbia. Pools elsewhere are operated by state governments, and the cuts don’t apply there.
The pools offer coverage to those who can’t otherwise get it because of a prior illness and are set to last until 2014, when the health overhaul requires insurers to accept all applicants.
The Department of Health and Human Services said it will offer three types of plans beginning in 2011, instead of just one offered now. The existing standard plan will offer premiums almost 20% lower than this year’s plan, according to the department, with a $2,000 medical deductible and a $500 drug deductible.
Premiums vary by state and age, and a spokeswoman did not provide a national average. In Texas, they start at $323 per month for the youngest enrollees and go up to $688 per month for the oldest.
The agency will add a second plan with higher premiums and lower deductibles of $1,000 for medical and $250 for prescriptions. A third plan will include a tax-advantaged health savings account and carry a $2,500 deductible.
HHS also carved out a new category of premiums for children with pre-existing conditions. Numerous private insurers have stopped offering coverage to these customers, citing new requirements in the law that compels insurers to cover all children regardless of their health status.
Source : Wall Street Journal
