State Insurance Pool: Can it Help you ?

Health insurance are basically interesting parts of ouron the open market by competing insurance
day-to-day life. It is only that sometimes, we are notcompanies, yet because of state law regulations, there
aware of this fact!is a firm cap on the amount of money a patient may
Keep your mind open to anything when reading aboutbe charged for insurance. In general, this cap runs
health insurance. Opinions may differ, but it is the basebetween 125 to150 percent of the base individual
of health insurance that is important.market rate. While the cap is firm, there is still some
A "State Insurance Pool" is a ground-breaking programelasticity in the rates, and they sometimes may vary
that secures insurance benefits for all individuals, evenbased on plan participants' ages, or even domicile
those who are considered to be high-risk by theaddresses.
insurance industry. Quite often referred to asQuite often copies of rejection notices must
"Guaranteed Access Programs", these pools areaccompany an application for coverage under the
unique plans created by individual state legislatures inumbrella of a state insurance pool from state-licensed
order to make available a sturdy safety net for thoseinsurance carriers. Additionally, anyone wishing to take
folks to whom the dreaded term "medicallyadvantage of a state-run plan must be a resident of
uninsurable" has been applied. Previously, thisthe state in which the plan is offered. In lieu of a
determination meant that a person in need of medicalrejection by an insurance carrier, an individual who can
care was denied health insurance coverage usuallyevidence 18 months or more of uninterrupted health
because of a pre-existing health condition. Sadly, it iscare coverage and is considered HIPAA eligible will
the patient with such health issues who is in thequite often qualify for pool coverage. Coverage for
greatest need of quality health care, yet quite oftendependants is available as well.
unable to afford the treatments because of theYou may be filled with astonishment with the amount
financial strain involved. Previously, this has led toof information we have compile here on health
interruptions in medical care for patients who hadinsurance. that was our intention, to astonish you.
exhausted available COBRA (Consolidated OmnibusIn short, a state insurance pool is of invaluable help to
Budget Reconciliation Act of 1985) benefits, and wereanyone who has been denied health insurance
now unable to meet steep financial demands frombecause of pre-existing conditions or has exhausted
care providers.the allotted time period of COBRA benefits, and needs
It is noteworthy that state insurance pools vary fromassistance in receiving needed medical care without
state to state; however, they usually function within thefear of exorbitant out-of-pocket expenses.
confines of a state formed not-for-profit alliance, whichAs of 2003, thirty-three states offered high-risk pools
is governed by a board of directors. In general, thisto their residents. Twelve states have chosen to opt
board has representative members from the insuranceout of these programs by providing alternatives. For
industry, individual insurance customers, and membersexample, the District of Columbia has contracted with
of the specific state insurance department. OperatingCarefirst Blue Cross Blue Shield to have an open
very much like a clearing house, the board enters intoenrollment period where interested individuals may
contracts with an insurance company, and thenpurchase coverage regardless of medical conditions,
oversees the day to day operations of collectingand enjoy full benefits after only a short two-month
members' premiums, receiving and paying out claims,waiting period. Rhode Island and Pennsylvania have
and answering questions on eligibility for treatment.contracted with Blue Cross/Blue Shield to offer
While coverage is frequently comparable to theyear-round enrollment for otherwise deemed
coveted 80/20 major medicals and outpatientuninsurable patients.
coverage, prospective members may still be deniedInterestingly, this health care concept has since been
plan benefits because of perceived issues of beingexpanded to also apply to hurricane insurance.
uninsurable, yet this limitation is often restricted to a"Windstorm Coverage Pools" are an alternative for
12-month period. Thereafter, acceptance is all buthomeowners who are unable to purchase individual
guaranteed. While this is good news for patientscoverage for their residences. Homeowners in a few
seeking insurance protection, it is important tocoastal counties of Georgia and New York are even
remember that this coverage, while state sponsored, isto participate in pool coverage for wind and hail
not free. As a matter of fact, premium costs aredamage through a program entitled "FAIR" (Fair
usually quite a bit higher than comparable plans offeredAccess to Insurance Requirement).