The Department of Health and Human Services has announced new steps to reduce premiums and make it easier for Americans to enroll in the federal Pre-Existing Condition Insurance Plan (PCIP).
Premiums for the PCIP will drop as much as 40 percent in 18 states and eligibility standards will be eased in 23 states and the District of Columbia, according to a statement released Tuesday by HHS Secretary Kathleen Sebelius.
The Pre-Existing Condition Insurance Plan, created under the Affordable Care Act, was designed to serve as a bridge to 2014, when insurers will no longer be allowed to deny coverage to people with a pre-existing condition, including cancer, diabetes and asthma.
"The Pre-Existing Condition Insurance Plan changes lives, and in many cases literally saves lives," Sebelius said. "These changes will decrease costs and help insure more Americans."
[See also: HHS announces $51M in state grants for health insurance exchanges.]
In 23 states and the District of Columbia, the PCIP program is federally-administered, according to Sebelius. The remaining states operate their own PCIP programs using federal funds provided by the Affordable Care Act.
Under the changes announced Tuesday, PCIP premiums will drop as much as 40 percent in 18 states where the federally administered PCIP operates. These premium decreases will help bring PCIP premiums closer to the rates in each state's individual insurance market; in the six states where PCIP premiums were already aligned with state premiums, premiums will remain the same, Sebelius said.
To further enhance the program, beginning this fall, HHS will begin paying agents and brokers for successfully connecting eligible people with the PCIP program, she said.
HHS reports that from November 2010 to March 2011, enrollment in PCIP programs rose 129 percent to more than 18,000 enrolled.
"These changes will get more people covered," said Steven Larsen, director of the Center for Consumer Information and Insurance Oversight. "We're encouraged by recent increases in enrollment and we're excited to build on these efforts and reach even more people."
[See also: HHS announces $200M in state grants to fight health insurance premium hikes.]
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