Posts Tagged - ‘guaranteed issue health insurance’

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Is The Govt. High Risk Health Insurance Plan Too Expensive?

Friday, July 2nd, 2010

Image: Sam Felder under CC 3.0

It looks as if healthcare reform was not the immediate panacea for high-risk patients that many hoped for. The temporary health insurance pools for people with pre-existing conditions have started to go live.

The good news: many of those who have been previously shut out of the market can now purchase a health insurance plan. Unfortunately, that plan may be prohibitively expensive; according to the federal government’s website (HealthCare.gov). Depending on the state–since rates are based on standard premiums in the area–and the person’s age, premiums can vary widely. For example, Florida health insurance rates under the program could be up to $675 per month for a 50 year old!

Although guaranteed issue health insurance can be costly, it pays to shop around. The high-risk pools may not save you as much as you think.

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How To Prevent Short Term Health Insurance Buyers From Gaming The System

Wednesday, June 30th, 2010

Image: MNgilen under CC 3.0

With reform beginning to take effect, subsidized guaranteed issue insurance for people with pre-existing conditions is set to become available. Unfortunately, there is a serious concern: the issue of people gaming the system.

In some places, such as Massachusetts, people will buy short term health insurance when they are knowingly sick and cancel shortly after they receive treatment (under one year later). Insurers pay for their treatments, while receiving little in premiums for reimbursement. Therefore, the costs are passed onto steadily insured consumers.

The prevalence of this practice has skyrocketed over the past several years. Legislators are proposing several solutions, including an open-enrollment period that would allow individuals to buy temporary coverage solely during one or two months out of the year. There would be exceptions included for major life changes.

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Reform Would Fund Guaranteed Issue Health Insurance Pools

Wednesday, March 17th, 2010

(Image: brentbat under CC 3.0)

Many supporters of the Obama administration’s healthcare reform believe that it will significantly help uninsured individuals with pre-existing conditions. Most health insurance plans are not willing to accept them. While each state has a high-risk health insurance pool, they are often underfunded and must put a cap on the number of people they accept.

Although guaranteed issue health insurance is already available for that group, some people may be unable to afford it on their incomes. Therefore, the bill currently pending in the Senate would increase access to the states’ high-risk pools, through $5 billion in funding. Premiums are lower, since they are partially subsidized by taxpayers.

Unlike most aspects of the legislation, the boost to the state-wide pools will not take place in 2014. Instead, it is set to become effective immediately!

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Bad Romance: Woman Will Marry For Health Insurance

Friday, February 19th, 2010

(Image: Will Marry For Health Insurance)

Another sign of the times: a woman named Terri Carlson is willing to marry a man for his health insurance. While there have been some reports of couples marrying sooner than they otherwise would have (or delaying divorce proceedings) in order to get on their spouses’ health insurance plans, this is unusual.

Terri suffers from a rare genetic immune disorder called C-4 complement deficiency. This pre-existing condition makes finding affordable health insurance very difficult. The divorcee and mother has been receiving COBRA health insurance for the past two years through her ex-husband’s job. However, that coverage is set to expire soon. Meanwhile, the expense of treatments and medications mean that even guaranteed issue individual health insurance will be unaffordable. Therefore, she is looking for a man who is willing to marry her and list her on his policy.

She is perfectly honest; it’s not about love. Obviously, someone with comprehensive health insurance will do far better with her than a person with a bare-bones high deductible plan. Needless to say, uninsured guys need not apply.

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