Feds Raise Prices for High-Risk Insurance Pools

Some high-risk members of the federally-funded back-up health insurance pools for those with pre-existing conditions saw their costs increase Jan. 1, as the federal government seeks to protect the pools from running out of money, according to a report by Kaiser Health News.

Advertisement

About 38,000 people had their out-of-pocket spending cap raised from $4,000 to $6,250 in their health plans through the pools, which were established with $5 billion in federal money in 2010 for people unable to acquire health insurance due to their pre-existing conditions.

Only about 130,000 of the expected 300,000 joined the plans, but per capita spending has been high and varied greatly between states, with one state averaging nearly $172,000 per member. About $1.9 billion of the original $5 billion had been spent by Sept. 30, 2011, according to a CMS report (pdf).

The pools are intended to expire once health insurers are barred from denying coverage for pre-existing conditions at the start of next year and those members will be able to buy health plans on the online health insurance exchanges.

More Articles on High-Risk Insurance Pools:

Maine Officials Ask for Health Reinsurance Plan Exemption
High-Risk Insurance Pools May Pour, Not Leak, Into Exchanges
Could Romney Really Repeal Healthcare Reform on Day One?

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.