More follow-ups on the news that the Obama Administration is cutting the health insurance premiums for the Pre-Existing Condition Insurance Plans (PCIPs). The State of Florida has announced that the Department of Health and Human Services is cutting the health insurance premiums for Florida’s PCIP by a whopping 40%, starting on July 1st. Roughly, this translates into adults over 55 being able to join the Florida PCIP program with health insurance premiums of as little as $376 to $505 a month, and children being able to join with health insurance premiums of as little as $118 to $158 a month.
Last week, the Obama Administration announced that it is expanding the PCIP program, cutting the health insurance premiums and loosening the restrictions on who can join the program which is designed to provide affordable heatlh insurance coverage to Americans who cannot get health insurance because of a pre-existing condition. The PCIPs are a temporary measure which will continue until 2014, when health insurance must be offered to all Americans regardless of pre-existing conditions. Currently, Americans with pre-existing conditions are often denied health insurance coverage or are only offered health insurance which is prohibitively expensive.
Even though the PCIPs were one of the most-hyped elements of President Obama’s healthcare reform, enrollment in the new program has been disappointing, with less than 20,000 Americans signed up for the program total. Although the PCIPs are limited to charging standard individual health insurance rates in the region and cap out-of-pocket costs, critics have argued that the health insurance premiums have still been too expensive for most people and the eligibility requirements to join are too stringent. Only 770 Floridians have joined the state’s PCIP so far.
The federal government plans to cut the PCIP health insurance premiums by as much as 40% for the programs in the 23 states and the District of Columbia that it runs directly. The states which run the PCIPs in the remaining 27 states will also have the option of reducing those health insurance premiums as well. In addition, applicants for the PCIP program will no longer be required to provide a letter from a health insurance company denying health insurance coverage. Instead, applicants will be able to substitute a letter from a doctor, nurse or physician assistant stating that they have a medical condition.
However, one of the biggest obstacles to joining a PCIP will remain in place. PCIP applicants will still be required to have gone without health insurance for at least six months before joining a PCIP.
PCIPs are enrolling members on a first-come, first-served basis, so if you are at all interested in applying for a PCIP, we advise you to apply even if you are unsure if you qualify. More information on all of the state PCIPs is available at HealthCare.gov.
Have you thought about joining a PCIP? Tell us about it!
- Nevada Cut Premiums 37.5% for Pre-Existing Condition Health Insurance Plan (PCIP)
- Indiana Pre-Existing Condition Health Insurance Plan (PCIP) Cuts Premiums 26%
- Michigan Pre-Existing Condition Insurance Plan (PCIP) To Drop Health Insurance Premiums
- Feds Will Slash Health Insurance Premiums for Pre-Existing Condition Insurance Plans (PCIPs)
- Healthcare Reform: Missouri Cuts Health Insurance Premiums for Pre-Existing Condition Pool (PCIP)