In many states, the Pre-Existing Condition Health Insurance plan is still being rolled out. Some states, however, have had access to this new form on health insurance. How is it working so far? It seems that for some people, this new health insurance plan is helpful. Other people, however, are finding that the cost of this new form of health insurance is much higher than they can afford.
The Pre-Existing Condition Health Insurance Plan (PCIP) is one part of the Affordable Care Act. In the next few years, Americans will see some changes in how health insurance works, and how much it costs, as a part of this Act. The Pre-Existing Condition Health Insurance Plan is the first part of the reform that will be taking place. The purpose of the PCIP is to ensure that health insurance is available for people who have been denied coverage by private health insurance companies specifically because they have a pre-existing condition. In general, the public perception of this plan was a favorable one. Most people feel that there is something immoral about insurance companies who deny health care coverage to the people who need it the most. It seemed that the PCIP would give those denied people the help they desperately needed.
Is the plan working the way so many American’s expected it would? There is an article in the St. Petersburg Times today that describes one man’s experience with the PCIP form of health care. Mr. Clyde Holladay was shocked to learn that his monthly premiums under this health care plan would cost him $773.00. He makes $30,000 a year. Needless to say, he cannot afford to pay this very high premium. He is one of many Americans that are finding out that the PCIP will not help them, after all. This is a big disappointment for many, in part because the PCIP was expected to offer an “affordable” plan.
Why are things not working as expected? Part of the problem, the article goes on to explain, is that individual health insurance premiums are extremely expensive right now. The law states that the PCIP premiums must be the same as the standard individual health insurance rates for a typical healthy person, (which will be different from one state to the next). The PCIP is also intended to be a temporary program. It is supposed to fill the gap between now, and 2014, when all Americans will be required to pay for some form of health insurance.
It is going to be interesting in the next few months to see how the PCIP works, or doesn’t work, for more Americans. I believe we can expect the topic of health insurance to play a big part in the next election.
Image by Stuart Pilbrow on Flickr