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California Announced Lower Premiums

The state of California announced Tuesday that it will lower premiums by as much as 24 percent for new and existing subscribers of PCIP health program for the medically uninsurable.

Monthly premiums for people in the federally funded PCIP high-risk pool, known as the Pre-Existing Condition Insurance Plan, will drop an average of 17.9 percent, or between 8.2 percent and 24.3 percent, according to the state’s Managed Risk Medical Insurance Board, which manages the program.

“We’re very pleased to be able to offer these lower premiums,” said Cliff Allenby, chairman of the high-risk insurance board. “This class of people has been really disadvantaged over the years in terms of not being able to get health coverage.”

California has been allotted $761 million from the federal government to operate the program until 2014, when the federal health law will prohibit insurers from denying people coverage due to pre-existing conditions. The government has committed $5 billion to administer the program nationwide.

But enrollment in the program has been slow than initially expected. So the federal government instructed states about how to recalculate their premiums.

In the Bay Area, the change means a 40-year-old would pay $305 a month instead of $344 and a 55-year-old would pay $514 rather than $624. The reductions will be reflected in bills as of Oct. 1, but will be retroactive to Aug. 1.

It will also be easier to apply for the program. Applicants no longer have to prove they’ve been rejected by insurers but instead will only need to provide a letter from their doctors explaining a deniable condition. The federal government is rolling out an outreach program to attract more subscribers.

The program is available to legal residents who’ve been uninsured for six months prior to applying and have a medical condition that has put private coverage out of reach.

The state of California announced Tuesday that it will lower premiums by as much as 24 percent for new and existing subscribers of PCIP health program for the medically uninsurable.

Monthly premiums for people in the federally funded PCIP high-risk pool, known as the Pre-Existing Condition Insurance Plan, will drop an average of 17.9 percent, or between 8.2 percent and 24.3 percent, according to the state’s Managed Risk Medical Insurance Board, which manages the program.

“We’re very pleased to be able to offer these lower premiums,” said Cliff Allenby, chairman of the high-risk insurance board. “This class of people has been really disadvantaged over the years in terms of not being able to get health coverage.”

California has been allotted $761 million from the federal government to operate the program until 2014, when the federal health law will prohibit insurers from denying people coverage due to pre-existing conditions. The government has committed $5 billion to administer the program nationwide.

But enrollment in the program has been slow than initially expected. So the federal government instructed states about how to recalculate their premiums.

In the Bay Area, the change means a 40-year-old would pay $305 a month instead of $344 and a 55-year-old would pay $514 rather than $624. The reductions will be reflected in bills as of Oct. 1, but will be retroactive to Aug. 1.

It will also be easier to apply for the program. Applicants no longer have to prove they’ve been rejected by insurers but instead will only need to provide a letter from their doctors explaining a deniable condition. The federal government is rolling out an outreach program to attract more subscribers.

The program is available to legal residents who’ve been uninsured for six months prior to applying and have a medical condition that has put private coverage out of reach.

Brian Schroeder
Brian Schroeder
Brian J Schroeder – Independent Broker - (925) 513-7778