Monday, August 9, 2010

Vermont Finds Its High-Risk Pool All Wet

While most of the news media was focused on the release of the Medicare trustees report last Thursday, the state of Vermont made an interesting admission regarding its high-risk pool program.  Specifically, the state sent HHS a letter asking the federal government to establish a pool in Vermont.  State officials were forced to revert to the federal pool program after concluding that a state-run risk pool in Vermont “could not be operational until at least July 1, 2011.”

Unfortunately, Vermont’s letter does not represent the first difficulty in implementing the risk pool program created under the health care law.  HHS did not meet the deadline for starting the risk pool established in statute, and state implementation difficulties such as those in Vermont could keep states from starting their programs until the fall (or later).  Moreover, the Congressional Budget Office found that the program’s $5 billion funding level will not be enough to meet demand, and could result in up to 500,000 people with pre-existing conditions being denied access.

Republicans support high-risk pool programs – but support implementing and funding them properly – because coverage for individuals with pre-existing conditions should not take a back seat to other dubious spending priorities in the Democrat health care law, like backroom deals and a new $15 billion slush fund for jungle gyms and other pet projects.