A newly released feature of the health care reform which allows people who have been previously rejected for coverage due to pre-existing health issues is not attracting as many consumers as expected.
Some states are claiming the costs for existing high risk pools are already too high, and many worry that the 5 billion dollars allotted by congress as a start up for the plans may not be enough to cover the claims.
The federal health officials argue that the new insurance plan is only experiencing “growing pains”. It will take time to spread the word and adjust prices and the benefit plans will become attractive.
State-level directors partly agree in an interview stating, that insurance premiums are not affordable to everyone who needs it. Those who can afford it are not sure because of federal lawsuits and congressional Republicans are trying to upend the law.
Pre-existing Condition Insurance Plan is the official name for the new health care law.
This is an early test of President Obama’s argument that people will accept politically divisive health care overhaul once they see the advantages for themselves. This feature, especially designed to address the 50 million people who have been denied coverage on the regular insurance market.
Already, 27 states have created their own high risk pools. The other states have given their residents the option to buy their insurance coverage through the new federal health plan. During the spring, the Medicare program’s chief actuary predicted that there would be 375,000 people signing up for the pool plans by the end of 2010. But in early November, the Health and Human Services Department declared only 8000 people had signed up, the officials of HHS refused to give an update even if they collected the data every month.