Will Rhode Island Opt Out of High Risk Pools?
Saturday, May 01, 2010
Update: Rhode Island will consider establishing a state high risk pool for the uninsured with pre-existing conditions, but would like more information from Kathleen Sebelius and her team at the Department of Health and Human Services (HHS) before making a commitment. In an April 30 letter, Health Insurance Commissioner Christopher Koller said Rhode Island will not commit to establishing a program if it requires the state to assume any fiscal responsibility. Given that many other states have indicated that they will not establish high risk pools, Rhode Island would also like to assess the costs and benefits of participating in the federal alternate offered to these states. Rhode Island has not historically offered a high risk pool because purchasing health insurance directly from an insurer is "guaranteed issue"--in other words, individuals cannot be denied coverage because of pre-existing conditions. According to Koller, Rhode Island's participation will "depend on the willingness of HHS to work with the State to build on existing foundations" to meet the requirements of the new health reform law. Rhode Island has until the end of May to formally submit an application for federal funding to establish a high risk pool.
Original Post: High risk pools are among the first programs to be implemented after the passage of the health care reform bill—officially known as the Patient Protection and Affordable Care Act. A high risk pool provides coverage for those who are uninsured with pre-existing conditions. Many states already operate a high risk pool for their residents—Rhode Island does not. All states have until the end of the day today to decide whether they would like to receive federal funding to operate their own high risk pool, or whether their uninsured residents will have access to a high risk pool created by the federal government. What will Rhode Island do? GoLocalProv will follow Rhode Island's upcoming decision and explain what that means for you.
