In July 2010, some of the first money allocated by the new health care reform law will start flowing to states that have elected to participate in the federal temporary high-risk insurance pool program. These pools are intended to extend insurance coverage to those individuals who have been denied coverage due to a pre-existing condition. Five billion dollars in federal funds will be available to the states through December 2013.
The U.S. Department of Health and Human Services (“HHS”) has proposed allocating funds for the program by using a formula almost identical to what was used for the Children’s Health Insurance Program (CHIP). Specifically, funds would be allotted to states using a combination of factors including nonelderly population, nonelderly uninsured, and geographic cost as a guide.
On April 30, 2010, New York elected to participate in the federal program. New York is eligible for a total potential allocation of $297 million for this period. State officials are assessing possible options for the structure of the program as they await further guidance from the federal government regarding implementation rules.
To view the HHS fact sheet on the federal temporary high-risk insurance pools program, click here.
To view a copy of the New York Insurance Department’s letter of intent to participate, click here.
