Monday, May 3, 2010

15 States Opt Out of Federal High-Risk Pool Program

Last Friday was the date by which states were requested to inform HHS as to whether or not they wanted to establish their own high risk pools as part of the $5 billion national program included in the health care law.  As of late Friday, a total of 43 states had responded to HHS.  Of those, 15 states decided to opt out – many citing the fact that the $5 billion will prove insufficient to fund claims through 2014 (a claim the CMS actuaries confirmed), which could put additional fiscal pressure on those states to make up the difference.  The states that opted out of the federal program include Alabama, Delaware, Georgia, Hawaii, Idaho, Indiana, Louisiana, Minnesota, Mississippi, Nebraska, Nevada, South Carolina, Tennessee, Wyoming, and Virginia.  A full list of the 28 states that have thus far opted to run their own state risk pools is listed here on the HHS website.  A Wall Street Journal article on the issue is available here.

 

UPDATE: A correction/clarification: The Governor’s office in Rhode Island e-mailed me following this earlier missive to let me know that the state has NOT decided to establish its own high-risk pool.  Instead the insurance commissioner sent a letter to HHS on Friday asking for more information about how the program would run – with a particular focus on whether the $5 billion in federal funds would lead to additional burdens on the state.  While the Department apparently construed this letter as demonstrating intent to participate, the Governor’s office has made it clear to HHS that the request for more information did not constitute a decision by the state to establish its own pool, and has asked HHS to update the online list of participants accordingly (which thus far it has not done).  Sorry for any confusion.