Premiums are Reduced for Pre-Existing Condition Insurance

Many people who have been unable to get health insurance can now get coverage through the Pre-Existing Condition Insurance Plan (PCIP), created under the Affordable Care Act, and as of this month, the premiums for those insurance plans is lower in some states.

The Obama administration reduced the premiums for high-risk insurance plans by up to 40% in 17 states and the District of Columbia. In six other states where the program is run by the federal government, there will be no change in premiums; in the rest, states have opted to administer PCIP programs themselves, and are not impacted by the premium reductions.

The PCIP serves as a bridge to 2014 when insurers will no longer be allowed to deny coverage to people with any pre-existing condition, like cancer, diabetes, and asthma.

As an example of the savings, a person in Virginia whose premium was $498 monthly before the cut will now will pay about $297 a month – a savings of more than $200 each month, according to the Department of Health and Human Services (HHS) website.

According to the HHS website, here is the amount of reduction in PCIP premiums by state:

State

PCIP Premium Reduction

Alabama

-40.0%

Arizona

-40.0%

Delaware

-40.0%

DC

-18.3%

Florida

-40.0%

Georgia

-15.5%

Hawaii

No Change

Idaho

No Change

Indiana

-26.2%

Kentucky

-40.0%

Louisiana

-24.8%

Massachusetts

No Change

Minnesota

-38.3%

Mississippi

-2.1%

Nebraska

-20.5%

Nevada

-37.5%

North Dakota

No Change

South Carolina

-14.7%

Tennessee

-18.4%

Texas

-23.6%

Vermont

No Change

Virginia

-40.3%

West Virginia

-15.8%

Wyoming

No Change

The rate reduction applies to all current and new enrollees. If you or your loved one are already an enrollee, your plan's rate should be reduced automatically on your next bill. The HHS website says deductibles for all plans will remain the same for 2011 in all states. For more information go to HealthCare.gov.

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