States are poised to establish national high-risk health insurance pools within 90 days, according to leaders of the National Association of State Comprehensive Insurance Plans (NASCHIP).
The high-risk pools are part of the newly passed healthcare reform law.
Health and Human Services Secretary Kathleen Sebelius wrote to governors and independent insurance commissioners last week, asking each to express interest in participating in a temporary, high-risk pool program that would provide coverage for persons with pre-existing conditions who can't otherwise obtain health insurance.
Sebelius provided states with a number of options for participation, including building upon existing state high-risk pools, according to Vernita Bridges-McMurtrey, board chairman of NASCHIP.
"The country's 34 state high risk pools are uniquely positioned to serve as an immediate mechanism to efficiently administer this interim expansion of healthcare," she said. "There is no question in our minds that we can accomplish this first leg of health reform better, faster and less expensively for the national risk pool."
According to Bridges-McMurtrey, NASCHIP and its member state high risk pools have been gearing up in recent months for what they hope will be a central role in health reform.
"Many of these pools have been serving Americans with pre-existing conditions for more than 20 years," she said. "The existing high risk pools have already invested the time and funding into developing the infrastructure necessary to serve high risk individuals. Implementing the national risk pool would simply mean adapting our infrastructure to the requirements laid out in the health reform legislation."
According to Bridges-McMurtrey, NASCHIP's state high risk pool executive directors also plan to provide technical assistance to HHS for fast-track implementation of a federal high risk pool in states that lack a program.
According to NASCHIP, state high risk pools have been receiving federal funding since 2003 under a grant program established under the Trade Adjustment Assistance Act. Up to $75 million per year has flowed into eligible state high risk pools to assist in offering premium subsidy programs, funding disease management programs and improved benefits for risk pool enrollees. Some of the funding has also helped defray pool operating losses.
"Federal funding has meant a great deal to state risk pool members nationwide over the years, especially lower income individuals who otherwise might not be able to access coverage, " said Bridges-McMurtrey.