I know that I rag on Obamacare a great deal. I was raised in a free America, where the government did not mandate how I spent my money. I have a major problem with Obamacare’s Individual Mandate. In my opinion, that part of the law is anti-American.
However, I also believe the saying, “When life gives you lemons, make lemonade.” Although I think that Obamacare’s elimination of medical underwriting will cause health insurance premiums to increase for all of us, it will significantly help some.”
In Texas, now, the only option for people who lose their health insurance at work because of medical conditions is the Texas Health Insurance Risk Pool. Some other states call it, “Health Insurance Of Last Resort.” Still, other states have no insurance programs of any sort to help people like this.
RECENT HIGH RISK INSURANCE HISTORY
One of the failed programs in Obamacare created health insurance programs for people who otherwise would be dependent on state high risk pools.
Unfortunately, the Obama administration either or mismanaged the money congress gave the program. By June of 2013, the program was almost out of money.
Those states who offer a high risk pool remained solvent, but at a cost. They had no choice but to charge higher premiums and offer fewer benefits than group health insurance plans typically do.
The Obama Administration believed that if they could only get enough money from congress, $5,000,000,000, they could charge already sick people the same premiums that are being paid by people in average health.
That theory bit them on the butt. In February the federal program was shut down for new enrollees. By July it was announced that the federal program was running out of money and would only pay doctors and hospitals what Medicare pays.
In the jargon of insurance, the Federal High Risk Health insurance plan experienced, “Adverse Selection.”
Ironically, while the federal program was slowly dying on the vine, the states that kept their high risk insurance, like Texas, still have fiscally solvent coverage for their citizens who are without health insurance.
Yes, the premiums are much higher for people who are already sick than those who are in average health, but there is coverage available for them.
THE FUTURE FOR HIGH RISK INSURANCE
When medical underwriting is removed in January, 2014, people whose only option was their state’s high risk pool in prior years will be able to get one of Obama’s Essential Benefit Plans. Those plans are expected to provide better benefits and lower premiums than what people have been paying for high risk coverage.
The article from Michele Andrews explains better than I can what the future has in store for those people who have High Risk Health Insurance plans.