What Are High-Risk Pools
High-risk pools are healthcare insurance coverages that will cover people who are considered uninsured individuals. High-risk pools will help individuals who can't afford the high rates from another insurance coverage company, and they'll provide them with more cost-efficient and affordable rates.
Why High-Risk Pool Plans were Created
High-risk pools were created for individuals who described themselves to be uninsurable. The high-risk pool plan was also established in order to give the people who're unable to purchase coverage or were ultimately rejected a chance at having affordable, inexpensive coverage with lower premium rates. Furthermore, they were created because high-risk pools suggest that they could possibly provide health coverage to a multitude of individuals in the near future.
To back up that claim, the state high-risk pool was established long before the Affordable Care Act (ACA) and it covered way over 200,000 people, and the Pre-Existing Condition Insurance Plan (PCIP) covered more than 100,000 people. The state high-risk pool was created due to health reform bills getting passed in the House and by the Senate. It offered coverage to people who couldn't afford other health care plans during the interim period between the enactment of legislation and even during the enactment of health care reform. So, the high-risk pool plan was created to give more-and-more people the right to obtain affordable health care and coverage.
Who's Eligible for High-Risk Pool Plans
If you're an uninsured individual and/or have pre-existing conditions, then you're eligible for a high-risk pool plan. If you have been locked out of the individual insurance market then you may want to consider looking into a high-risk pool plan. If you happen to be eligible for Health Insurance Portability and Accountability, also known as HIPAA, then you may have a good chance at having a high-risk pool offer coverage for you. Also, a high-risk pool plan can offer health insurance coverage that's very affordable due to the help from a state government.
An Overview of High-Risk Pools
High-risk pools were originally designed to give assurance and ultimately assure individuals that are in need of high-cost care that they'd get the care they need for an affordable monthly cost. These high-risk pool plans were only given to the people who met all of the requirements for their enrollment. However, high-risk pools have had very little and limited success. They've been overfunded multiple times, relatively expensive, and featured limited varieties of different plans.
An Overview of the State High-Risk Pool
A state high-risk pool offers health care insurance coverage to residents state-wide. Residents can only be accepted for a state high-risk pool if he or she has medical conditions that are pre-existing, or he/or she can't pay the high-rates of another health care coverage. Through the state high-risk pool, individuals receive benefits such as inpatient services, outpatient services, and availability of prescription drugs if needed.
Who Funds High-Risk Pool Plans?
High-risk pool plans are offered by private health insurers. However, since the health insurance company would most likely lose money selling these plans, the state and federal governments will provide extra funds to help offset the costs associated with insuring a high-risk policy holder. Therefore, it's safe to say that high-risk pool plans are funded by a combination of health insurance companies, the states, and federal governments.
High-Risk Pools Under Obamacare
High-risk pools were rapidly urged by supporters of Obamacare high-risk pools. Obamacare high-risk pools require every insurer to cover every single individual and have them pay the same amount, regardless of their history: health, pre-existing conditions, etc. In addition to that, Obamacare demands that each policy needs to cover at least ten health benefits: prescriptions, hospital visits, doctors' visits, and assure the sick that the treatments they endure are definitely covered. However, Obamacare high-risk pools cost everybody extra money. Obamacare high-risk pools increase the rates of premiums for everybody.