News Release – Source: www.hhs.gov
Sebelius Continues Work To Implement Health Reform, Announces First Steps To Establish Temporary High Risk Pool Program
U.S. Department of Health and Human Services (HHS) Secretary Kathleen Sebelius today issued a letter to governors and independent insurance commissioners asking each state to express their interest in participating in the temporary high risk pool program established by the new health insurance reform law. The temporary high risk pool program was created to help provide coverage to people who are uninsured because of pre-existing conditions. States may choose whether and how they participate in the program. HHS is committed to working closely with states as the program is implemented.
“The establishment of a temporary new high risk pool program is one of our first tasks in implementing the new health reform law and will help provide affordable insurance for Americans who have been locked out of the insurance market for too long,” said Sebelius. “This letter marks the first step in that process and demonstrates one of our core principles of implementation – building on effective programs that already exist. In the coming days, we will work closely with states to answer their questions.”
In her letter, Sebelius writes: “We are interested in building upon existing state programs in this important initiative to provide expanded access to health coverage for individuals who cannot otherwise obtain health insurance. To that end, I am writing you today to request and expression of your state’s interest in participating in this temporary high risk pool program, consistent with one of the implementation options described below.”
The new health insurance reform law provides $5 billion in federal funds to support this new program. States have a number of options for how they may participate. Options include:
- Operate a high risk pool alongside a current state high risk pool;
- Establish a new high risk pool (in a state that does not currently have a high risk pool);
- Build upon other existing coverage programs designed to cover high risk individuals;
- Contract with a current HIPAA carrier of last resort or other carrier, to provide subsidized coverage for the eligible population; or,
- Do nothing, in which case HHS would carry out a coverage program in the state.