Some interesting and hopeful news from HHS today says the WH has decided to cut the cost of premiums in the HIR Plan's new Pre-Existing Condition Insurance Plan.
Recent news reports showed little more than 8,000 people to date had enrolled in these new state run plans. The patchwork of state pool programs has resulted in more than a few barriers for consumers with pre-existing conditions.
AP reports that HHS has announced some re-tooling of the PCIP to improve coverage and reduce costs for consumers.
Part of the problem is sticker shock. Premiums vary by state, and can range from $400 to $600 per month or more for people in their 40s and 50s.
Health and Human Services officials said Friday the program will cut premiums by about 20 percent next year, as well as offer a choice among different plans. Prescription drug coverage will also get better.
Link
Props to the White House for responding quickly to the news of low enrollments, but one can't help but question whether a 20% cut in premium costs is a little too stingy. After all, it would only reduce a $600 per month premium by $120. In addition, many of these lower cost plans have very high deductibles, a real barrier for patients living with high cost medical conditions like cancer.
With GOP wins in many state governor's offices, there's plenty of reason to be worried about the future of these plans, including proper regulation of the insurance companies running them. Here in Ohio, Gov.- elect John Kasich and his trusty AG - elect Mike DeWine have pledge to repeal health care reform completely. They're also not likely to manage the PCIP plan very well either, given the support from the private insurance lobby that helped put them in office.
There aren't many details available yet on the WH revisions to the plan, but it will be interesting to see what develops. Kudo's to Obama for his quick response to the problem and good luck to HHS in trying to oversee these programs in hostile red states.
For fun - Surf's Up in Cleveland Today
http://blog.cleveland.com/...
Update: Details, details. Thanks to jpmassar for the link to HHS's update on details of the improvements. From the HHS web site:
Expanded Plan Options in 2011
In 2010, people enrolled in the federally-administered PCIP program were offered one plan. Beginning in 2011, such enrollees in the federally administered PCIP program will be able to choose between three plan options: the Standard Plan, the Extended Plan and the Health Savings Account eligible plan. In addition, families will be able to enroll their eligible children in PCIP at child-only rates. These options will allow enrollees to select a plan that best meets their needs.
2011 Standard Plan
The existing option in PCIP has been improved. The 2010 Standard Plan had a single, combined medical and pharmacy deductible of $2,500. The 2011 Standard Plan now has two separate deductibles -- a $2,000 medical deductible and $500 drug deductible, while also offering premiums that are almost 20% lower than the 2010 premiums. The reduced pharmacy deductible is particularly beneficial for people who take one or more maintenance medications. The lower premiums result from experience and are expected to be more affordable for the eligible population with pre-existing conditions.
2011 Extended Plan
A new plan option, called the Extended Plan, has a $1,000 medical deductible and $250 drug deductible plan. The premiums for the 2011 Extended Plan will be slightly higher than 2010 premium levels. Just as with the Standard Plan, separating the drug and medical deductibles makes this plan option more valuable for those enrollees who take one or more maintenance medications.
Health Savings Account Option
The Health Savings Account (HSA) Option will carry a $2,500 deductible but with premiums that are 16% less than 2010 premiums. As with the current plan, this option is eligible to receive favorable tax treatment by the federal government when used with a Health Savings Account (HSA).
Child-Only Rate
To ensure that children have more affordable access to coverage, HHS has established premiums targeted for covering children under PCIP, creating a child-only rate for PCIP enrollees between 0-18 years of age.
Posted: November 5, 2010
Link to Healthcare.gov page with details