The Pre-Existing Condition Plan just got more affordable. As of July 1, 2011, the premiums for this health insurance plan have been reduced from what they originally cost. This is really good news for people who qualified for this type of health insurance, but were unable to get it because it was too expensive for them to afford.
One of the first of the health reform changes took place in 2010, when the Pre-Existing Condition Plan (PCIP) was created. It is part of the Affordable Care Act. The main purpose of this type of health insurance was to guarantee coverage for people who had previously been struggling to find coverage due to the fact that they certain types of health conditions.
Before 2010, private insurance companies were unwilling to offer health insurance to customers who came to them for their health insurance needs after it had been determined that the person had one of several different severe or chronic health issues. In short, the insurance companies were trying to avoid having to pay for the medical care that this group of people would require, because of the financial expense of doing so.
The result was that the people who were most in need of health insurance couldn’t find an insurance company who would sell it to them. Or, they couldn’t afford the high premiums that they were being offered. This was the situation before the PCIP. After that, many people with pre-existing health conditions were, finally, able to find health insurance. The problem was that it was still too expensive for a lot of people to take advantage of.
As of July 1, 2011, the cost of the PCIP insurance has dropped. Premiums have been reduced by up to 40% for seventeen states, and the District of Columbia. The new premium rates are influenced by state-specific data about the standard rates of individual health insurance policies.
This means that the total percentage of discount will vary from one state to the next. The PCIP will now cost 2% less in Mississippi, 18% less in the District of Columbia, and 40% less in Virginia. There are five other states that will also see a 40% discount. Several states are going to see a discount that falls somewhere between 15% and 25%.
Image by Michael David Pedersen on Flickr