Government Pre Existing Condition Health Insurance Plan becomes more affordable « Health Insurance Advisory

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new healthcare reform lawThe new healthcare law, called the Patient Protection and Affordable Care Act (PPACA), represents comprehensive healthcare reform legislation signed into law on March 23, 2010. It contains numerous provisions designed to protect consumers and promote low cost medical insurance, including many new taxes to pay for the cost.

In this section of the site, you can also obtain the following information specific to your state: available medical insurance options, efforts to regulate medical insurance premiums, healthcare, the individual medical insurance marketplace and the new healthcare law.

Our objective is to help Americans make sense of the new healthcare law by explaining key provisions in plain English and assisting individuals, families and the self-employed in using this information to find and secure affordable medical insurance.

Government Pre Existing Condition Health Insurance Plan becomes more affordable

Author: Administrator | Jun 14 2011 | Government Pre Existing Condition Insurance Plan

More affordable premiums and easier eligibility requirements were announced by the U.S. Department of Health and Human Services (HHS) for the Pre Existing Condition Health Insurance Plan (PCIP) programs on May 31, 2011.

The new healthcare law, called the Patient Protection and the Affordable Care Act (PPACA) created the PCIP to ensure Americans with pre existing health conditions have access to an affordable medical insurance plan. Since individual major medical insurance is currently medically underwritten, persons with pre existing health conditions may not qualify for coverage. The PCIP is an interim step until January 2014 when all major medical is guarantee issue. This means that medical insurance companies must accept all individuals and cannot decline persons with a pre existing health condition, such as cancer, diabetes, and asthma.

PPACA gave states the flexibility to set up and administer their own PCIP or allow the federal government to manage the program on their behalf.  In 23 states and the District of Columbia, the PCIP program is federally administered.  The remaining states operate their own PCIP program using federal funds provided by the new healthcare law.

The rate reduction and relaxed eligibility guidelines are applicable to PCIP’s administered by the federal government. The changes are designed to make it easier for Americans to qualify and bring the premiums closer to the rates in each state’s individual major medical insurance market.

The new eligibility standards will be eased in all 23 states and the District of Columbia where the PCIP is federally-administered. Beginning July 1, 2011, people applying for medical insurance 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, at any time in the past, had a medical condition, disability, or illness.  Applicants will no longer have to wait on an insurance company to send them a denial letter.  Applicants must also continue to meet existing eligibility criteria; including being a U.S. citizen or legal resident and not having medical insurance coverage for at least six months.

Premium reductions in states with federally-administered PCIP programs are as follows:

  • Alabama             -40%
  • Arizona               -40%
  • Delaware            -40.0%
  • District of Columbia  -18.3%
  • Florida                -40.0%
  • Georgia               -15.5%
  • Indiana               -26.2%
  • Kentucky            -40.0%
  • Louisiana            -24.8%
  • Minnesota           -38.3%
  • Mississippi          -2.1%
  • Nebraska             -20.5%
  • Nevada                 -37.5%
  • South Carolina  -14.7%
  • Tennessee           -18.4%
  • Texas                    -23.6%
  • Virginia                -40.3%
  • West Virginia     -15.8%

For more information on the new healthcare reform law and it can help you, visit healthinsuranceadvisory.org today.

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