Price of Pre-Existing Condition Plan to Drop in Missouri

Missouri sign The cost of the Pre-Existing Condition Plan in Missouri is about to drop in price, once again. This has been done in the hopes that it will enable more people to enroll in this health insurance program. Missouri is not the only state to lower the cost of their state’s version of this plan.

Not long ago California decided to lower the cost of the premium on their Pre-Existing Condition Plan (PCIP). The discounted price took effect on August 1, 2011, and has affected 3,500 people. Some of the people will see an 18% drop in price, and others will get the maximum discount of a 24% reduction in the cost of their premiums. California is one of the seventeen states that will be dropping the price of this program.

The Pre-Existing Condition Plan is a health insurance plan is a form of government run health insurance. It was designed to be an affordable health insurance plan that would cover people who had been turned away by private insurance companies specifically because of a pre-existing condition.

In other words, this is for the people who tried to buy private health insurance, but were refused coverage by the private insurance companies. It is also for people who were quoted premium rates from private insurance companies that were way too high for them to be able to afford.

In Missouri, the cost of the premiums for their PCIP is about to drop. This is not the first time that citizens of Missouri have seen a price reduction in their state’s Pre-Existing Condition Plan.

The state of Missouri has reduced the cost in the hopes that more people will enroll in the program. There are currently about 550 people who are using the PCIP in this state. The program has the capacity to provide health insurance coverage for as many as 2,500 people. It is believed that the main reason why people haven’t signed up for this health insurance is because the cost was too high for them to afford.

Missouri recently got approval from the federal government to reduce the rate on the PCIP by 23%. In February of 2011, Missouri reduced it by 25%. The latest cost cut could save people somewhere between $500 and $2,000 a year. The amount depends on the person’s age, and the amount of their deductible.

Part of the problem that Missouri has been having with the cost of their PCIP has to do with the way insurance is regulated in the state. In short, health insurance is not regulated in Missouri. Health insurance companies are not required by law to file their rates with the state. This means that the state of Missouri has to continually recalculate what the price of the PCIP should be, in order to take into consideration the current rate that private insurance companies are charging for health insurance.

Image by LeeAnne Adams on Flickr

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About Jen Thorpe

I have a B.S. in Education and am a former teacher and day care worker. I started working as a freelance writer in 2010 and have written for many topics here at