Tuesday, February 22, 2011

Making Health Insurance (Un)Affordable

The Montgomery Reporter states that 61 Alabama residents have taken advantage of the PCIP insurance plan for those who cannot meet underwriting requirements of traditional major medical coverage.

Nationwide enrollment totals around 12,000 participants, far less than the 200,000 that were expected to enroll.

The insurance was made available under the new federal health care law. It's designed to bridge the gap until 2014, when private insurance companies will no longer be allowed to deny coverage for people who have had certain major illnesses.

A spokesman for the Alabama Department of Insurance said cost may be a factor in Alabama's low enrollment. Premiums for people over 55 are $583 per month for the standard plan and $785 for the extended plan, plus deductibles and co-payments.

This begs the question, if some consider PCIP to be unaffordable, how will anyone pay for health insurance once health insurance companies are required to take anyone and everyone?

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