On May 31, 2011, the U.S. Department of Health and Human Services (HHS) announced that premiums will be reduced and eligibility requirements will be eased when enrolling in the federally administrated Pre-Existing Condition Insurance Plan (PCIP).
Benefit amounts and monthly premiums for the Pre-existing Conditions Insurance Plan (PCIP) are now available on www.healthcare.gov. In addition to the monthly premium, participants will be responsible to pay other costs such as deductibles, co-payments, and out-of-pocket charges.
The government published responses to frequently asked questions on the www.healthcare.gov website. Several of those questions and answers are included below to provide more detailed information on the high-risk pool.
Interestingly enough, a letter from the Congressional Budget Office (CBO) confirmed that the $5 billion allocated for the high-risk fund is insufficient to carry the plan through 2014 when the exchanges are to be implemented. The CBO has determined that an additional $10-15 billion will be needed to cover the plan participants, which is estimated to initially be around 400,000 in 2011 and increase to 700,000 by 2013.
On July 1, eligible residents of South Carolina will be able to apply for coverage through the state’s PCIP program run by the U.S. Department of Health and Human Services.
One of the earliest provisions of health insurance reform to take effect is the establishment of a temporary national high-risk pool by July 1, 2010 for the uninsured population with pre-existing conditions. On Friday, South Carolina notified HHS that they would not be participating in the national high-risk pool.