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State Insurance Pool: Can it Help you ?

Health insurance are basically interestinginsurance companies, yet because of state law
parts of our day-to-day life. It is only thatregulations, there is a firm cap on the
sometimes,  we  are  not  aware of this fact!amount of money a patient may be charged for
insurance. In general, this cap runs between
Keep your mind open to anything when reading125 to150 percent of the base individual
about health insurance. Opinions may differ,market rate. While the cap is firm, there is
but it is the base of health insurance thatstill some elasticity in the rates, and they
is  important.sometimes may vary based on plan
participants' ages, or even domicile
A "State Insurance Pool" is a ground-breakingaddresses.
program that secures insurance benefits for
all individuals, even those who areQuite often copies of rejection notices must
considered to be high-risk by the insuranceaccompany an application for coverage under
industry. Quite often referred to asthe umbrella of a state insurance pool from
"Guaranteed Access Programs", these pools arestate-licensed insurance carriers.
unique plans created by individual stateAdditionally, anyone wishing to take
legislatures in order to make available aadvantage of a state-run plan must be a
sturdy safety net for those folks to whom theresident of the state in which the plan is
dreaded term "medically uninsurable" has beenoffered. In lieu of a rejection by an
applied. Previously, this determinationinsurance carrier, an individual who can
meant that a person in need of medical careevidence 18 months or more of uninterrupted
was denied health insurance coverage usuallyhealth care coverage and is considered HIPAA
because of a pre-existing health condition.eligible will quite often qualify for pool
Sadly, it is the patient with such healthcoverage. Coverage for dependants is
issues who is in the greatest need of qualityavailable  as  well.
health care, yet quite often unable to afford
the treatments because of the financialYou may be filled with astonishment with the
strain involved. Previously, this has led toamount of information we have compile here on
interruptions in medical care for patientshealth insurance. that was our intention, to
who had exhausted available COBRAastonish  you.
(Consolidated Omnibus Budget Reconciliation
Act of 1985) benefits, and were now unable toIn short, a state insurance pool is of
meet steep financial demands from careinvaluable help to anyone who has been denied
providers.health insurance because of pre-existing
conditions or has exhausted the allotted time
It is noteworthy that state insurance poolsperiod of COBRA benefits, and needs
vary from state to state; however, theyassistance in receiving needed medical care
usually function within the confines of awithout fear of exorbitant out-of-pocket
state formed not-for-profit alliance, whichexpenses.
is governed by a board of directors. In
general, this board has representativeAs of 2003, thirty-three states offered
members from the insurance industry,high-risk pools to their residents. Twelve
individual insurance customers, and membersstates have chosen to opt out of these
of the specific state insurance department.programs by providing alternatives. For
Operating very much like a clearing house,example, the District of Columbia has
the board enters into contracts with ancontracted with Carefirst Blue Cross Blue
insurance company, and then oversees the dayShield to have an open enrollment period
to day operations of collecting members'where interested individuals may purchase
premiums, receiving and paying out claims,coverage regardless of medical conditions,
and answering questions on eligibility forand enjoy full benefits after only a short
treatment.two-month waiting period. Rhode Island and
Pennsylvania have contracted with Blue Cross
While coverage is frequently comparable toBlue Shield to offer year-round enrollment
the coveted 80/20 major medicals andfor  otherwise  deemed  uninsurable patients.
outpatient coverage, prospective members may
still be denied plan benefits because ofInterestingly, this health care concept has
perceived issues of being uninsurable, yetsince been expanded to also apply to
this limitation is often restricted to ahurricane insurance. "Windstorm Coverage
12-month period. Thereafter, acceptance isPools" are an alternative for homeowners who
all but guaranteed. While this is good newsare unable to purchase individual coverage
for patients seeking insurance protection, itfor their residences. Homeowners in a few
is important to remember that this coverage,coastal counties of Georgia and New York are
while state sponsored, is not free. As aeven to participate in pool coverage for wind
matter of fact, premium costs are usuallyand hail damage through a program entitled
quite a bit higher than comparable plans"FAIR" (Fair Access to Insurance
offered on the open market by competingRequirement).



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