Ricardo Alonso-Zaldivar, Associated Press Writer, On Tuesday June 29, 2010, 7:11 pm EDT
WASHINGTON (AP) -- The Obama administration is launching a special coverage program for uninsured Americans with medical problems this week, the most ambitious early investment of President Barack Obama's health care overhaul.
But here's the catch: Premiums will be a stretch for many, even after government subsidies to bring rates close to what healthier groups of people are charged.
And $5 billion that Congress allocated to the program through 2013 could run out well before that.
The Pre-Existing Condition Insurance Plan will begin accepting applications in many states on Thursday, with coverage available as early as Aug. 1, an administration official said Tuesday. Consumers can check availability in their states on a new website, healthcare.gov, starting Thursday. The goal is for all states to be enrolling people by the end of the summer.
The official spoke on condition of anonymity ahead of the administration's announcement later this week.
"I would enroll as soon as you can," said Stephen Finan, policy director for the American Cancer Society Cancer Action Network. "These rates are going to be as affordable as consumers can get these days, particularly for a high-risk individual."
Premiums will vary from state to state. In California, for example, the cost for a 50-year-old is estimated at $575 a month, with a $1,500 annual deductible and 15 percent co-insurance. Premiums in states with lower medical costs could be around $400 a month.
"That's still quite a lot of money, so there will be some folks who struggle to afford that," said Marian Mulkey, health reform director for the California HealthCare Foundation. "But it's going to mean a big jump in access."
The insurance program is a stopgap fix for the most vulnerable until 2014, when core provisions of the new health care law take effect. At that time, insurance companies will be barred from turning away people in poor health, low- and middle-income households will get government assistance with premiums, and most Americans will be required to carry coverage.
To qualify for the temporary program, a person must have a pre-existing medical condition and must have been uninsured for six months or longer. The main beneficiaries are likely to be the self-employed and their families, and those who work for small employers that don't provide coverage. Only U.S. citizens and legal residents qualify.
Millions fit that description, and technical experts who advise Congress and the administration have repeatedly warned that the White House underestimated the cost. The Congressional Budget Office said last week it would take probably another $5 billion to $10 billion to fully meet the demand, about 700,000 people who would potentially sign up by 2013.
Medicare economists earlier estimated the program would sign up 375,000 people this year, but run out of money around the end of 2011.
That would be an embarrassment for Obama, since the program is a centerpiece of his plan for putting the nation on a path to coverage for all.
"There's a political concern of whether expectations are being raised that are unreasonable, and may not be able to be fulfilled," said health economist Gail Wilensky, who ran Medicare for President George H.W. Bush.
Launching the new program in about three months has not been easy. Most states have opted to administer their own plans, but about 20 have asked Washington to run the program directly for them.
To make matters more confusing, most states already operate their own high-risk insurance pools, covering about 200,000 people in total. However, the state plans tend to charge significantly higher premiums than the new federal plan, and many offer skimpier coverage. Consumers will not be able to switch from state to federal coverage -- unless they're willing to risk going six months without health insurance.
Worries about unfunded costs prompted many states to shy away from taking on the new program directly, even though Washington has promised to cover the cost.
"Part of the reason those 20 states deferred to the federal government was a concern about the financing," said Richard Cauchi, health program director for the National Conference of State Legislatures. "State budgets are in such tough shape."
It's unclear what the administration and its supporters will do if the money runs out.
"Once you have a significant number of people in each state who gain the benefit of the new coverage, it will be a difficult decision for a member of Congress to say that needed funds will not be provided," said Ron Pollack, executive director of Families USA, a health care advocacy group.
http://finance.yahoo.com/news/New-coverage-for-uninsured-apf-1278679680.html?x=0&....
So, isn't this pretty much what Whodey and I have been teling ya all? We aren't getting squat.
What a joke, if we could all afford $575 a month, we'd have insurance already.......some help that is!!! Thank god for my hubby's group policy thru work. Hope we never lose it! People who need insurance can't afford it.....but if you sit on your ass you can get it for free, what about the working folks?????? The so called "middle" class?
Gov't needs to revamp that whole welfare system.....then they'll find alot of money to insure people and help the working folks instead of the lazy ones. If you have no disabilities that keep you from working, (which most that are on welfare don't).....they shouldn't get anything.....make them get a job, THEN offer help to make it if they can't. The system was broke long ago......lets fix that first Mr. Obama......Obamacare, woohoo........NOT
Not my words, just one of many posts taken from a site, where the real sick people are,, they are sooo not happy,,, whodey?
Originally posted by Hugh GlassRepublicans and other opponents of the reform didn't want ordinary people [who were not covered] to get squat.
Slap me if I'm wrong,,didn't they say it was too expensive, and wouldn't really help many people... it's been awhile since we've squabbled on this one,,,,
I thank Obama for TRYING. I have had no insurance since 2000 and had to pay for EVERYTHING out of my own pocket. MRIs, LP's, IV steroids, medicatiions, doc office visits, everything. I cannot afford 575$ a month, so I will remain uninsured. If I end up in hospital-a matter oftime for me- I'll lose my house. Basically I willbe on the street, dissabled.Unable to move. Might as well shoot myself now andavoid the hassle.
Isn't capitalism just wonderful?
Again. NOT my words, at least this lady gives him some credit for trying hey??
Originally posted by Hugh GlassRepublicans and other opponents of the reform succeeded in watering down the reform perhaps. They didn't want uncovered people to get squat and so now here you are 'testifying' ( a.k.a. cut and paste an anti-reform op-ed ) to the political achievement of Republicans and other opponents of the reform.
And they can now?
Originally posted by Hugh GlassThe Patient Protection and Affordable Care Act (Public Law 111-148) was passed on March 23, 2010. It kicks in fully in 2014. When you say people are "not getting squat" are you talking about under the old system or the post 2014 system? Are the angry people whose opinions you trawl for on the internet aware that the Patient Protection and Affordable Care Act hasn't been implemented yet?
So, isn't this pretty much what Whodey and I have been teling ya all? We aren't getting squat.
Hi
Yeah just popping in to say thanks OBAMA for nothing,
Perhaps if i go live on the street for a week, will i be able to enroll for free, gees i have worked every day of my working life, and paid all my taxes etc, and i still do not have an extra 575 a month to pay for insurance, i had always had insurance paid through work that is until last week when i lost my job
I can just see it coming, that all small companies are going to be hit big time with this new bill, and they are gonna cut all benefits for the workers as they are not going to be able to afford it, and i also fear for the larger companies too, i can see them saying hell folks it is gonna be cheaper for you guys to get your own and after a lot of research i think this is actually true, it is cheaper to get insurance on your own than through a work group plan
Just my penny worth
Tanya
Again, not my words, from the MS forum. I can do this all day long but my point should have been made by now...... how does a sick person, not working pay 575 a month for insurance, that is 1/2 assed anyway? So what do the American people get for the costs of this Health care bill?
One symptom almost all MSer's have is severe fatigue, cause by the brain re-routing signals around damaged parts of the brain, so maybe that is why I can still walk...? Anyway, the insurance company will allow 6-8 tablets per 14 days, with a co-pay of 75.00..... see my point FMF? I was taking 3 per day before...now I and many others are pretty much screwed.
it's not just the cost of getting insured,, the co-pays eat you up as well.
been re-programed yet, or do you just like to argue against me?
Originally posted by FMFHere, go ask them.......www.patientslikeme.com
The Patient Protection and Affordable Care Act (Public Law 111-148) was passed on March 23, 2010. It kicks in fully in 2014. When you say people are "not getting squat" are you talking about under the old system or the post 2014 system? Are the angry people whose opinions you trawl for on the internet aware that the Patient Protection and Affordable Care Act hasn't been implemented yet?
If you want the real story, you go to the people who are affected? if you want to babble on like you know it all, that is fine too.
walk in their shoes,, and maybe learn something you don't already know. Yes there are things you are unaware of my friend... many things
go look:
"One is not what one says he is, but what one demonstrates himself to be"
On the other hand, you may be able to help inform these people, and actually do some good? You are standing up well for gays/Lesbians I am told? So, why stop there?
Originally posted by Hugh GlassDo the angry people whose opinions you trawl for on the internet know that the Patient Protection and Affordable Care Act 2010 won't have been fully implemented until 2014?
if you want to babble on like you know it all, that is fine too.
Originally posted by FMFthe sign up for the pre-existing condition starts today, but like the above post, states you have to have been uninsured for 6 months.
The Patient Protection and Affordable Care Act (Public Law 111-148) was passed on March 23, 2010. It kicks in fully in 2014. When you say people are "not getting squat" are you talking about under the old system or the post 2014 system? Are the angry people whose opinions you trawl for on the internet aware that the Patient Protection and Affordable Care Act hasn't been implemented yet?
Oregon has a medical insurance pool, that was almost as expensive as my COBRA, and a far cry from the coverage I had. In fact some 20 states already had a plan in affect. People could not afford them. And probably still can't.
I think some of them expected a wee bit more from our chosen one.
Originally posted by Hugh GlassWell, it's about time Americans start paying the taxes requires for their lifestyle.
the sign up for the pre-existing condition starts today, but like the above post, states you have to have been uninsured for 6 months.
Oregon has a medical insurance pool, that was almost as expensive as my COBRA, and a far cry from the coverage I had. In fact some 20 states already had a plan in affect. People could not afford them. And probably still can't.
I think some of them expected a wee bit more from our chosen one.