A subsidized program for health insurance in California that offers consumers an affordable form of protection when they have pre-existing medical conditions, has managed to break the 5,000 member level at its first birthday, but this was notably lower than the anticipated enrollment.
The state had received $761 million from the federal government in order to operate the program until the 2014 start of the new healthcare insurance requirements for state-run insurance exchanges as a part of the Obama Administration’s healthcare overhaul.
At the start of this subsidized insurance program, it was expected that it would be able to support 25,000 members. Clearly, it has not come anywhere near this mark. In the Sacramento region, the program has enrolled only 228 members.
It is not yet evident why so few people have enrolled. The federal government has already decreased the premiums twice, even though the program started off with rates significantly lower than the Managed Risk Medical Insurance Program, which has been in operation by the state for quite some time.
The new Pre-Existing Condition Plan was hoped to be an insurance that would carry Californians over until 2014 when insurance companies will no longer be allowed to deny coverage to adults who have pre-existing medical conditions, nor will they be able to charge higher rates for the protection.
In order to qualify for the program, adults must have had no other credible health insurance for the last six months, must lawfully reside within the country, and must have a pre-existing medical condition that has led to a previous denial of insurance coverage, or that has been offered at a rate that the individual cannot afford.
A licensed health care provider can also provide a letter that indicates that the individual has had a condition that would lead to the aforementioned insurance struggles.