According to recent press, the federal government has indicated that it plans to decrease the premiums for the federal PCIP (temporary risk pools) by 20% in order to encourage greater enrollments.
Apparently enrollment in the new PCIP has been lackluster at best.
I do not yet know if the decrease will be applied to the CA PCIP as it is being run by the state (MRMIB) and not a direct federal risk pool.
Unless the government can find more $$$ to pump into the pools, this is going to likely create a reduced number of enrollment slots meaning less people will be able to be covered at the lower premium.
California's PCIP is scheduled to hold an average of 23,100 people at any given time with a possible increase in two years if scheduled federal funding is available. Obviously a 20% premium decrease under existing funding ($761MM) would likely lower the number of subscribers by that same percentage.
PCIP Premium Decrease (HHS)
California PCIP (Federal Risk Pool) Delays Open to October 7
The California PCIP (Pre-existing Condition Insurance Program) has announced a delay of one week for opening of the coverage program.
MRMIB anticipates coverage to go into force on October 7, 2010.
California PCIP (Federal Risk Pool) Opens
The PCIP (Pre-existing Condition Insurance Program), also referred to as the Federal Temporary Risk Pool, is now open and accepting applications for enrollment.
The PCIP is an individuals-only enrollment with no dependents. Rates are set correspondent to the standard rate for a similar $2500 deductible PPO plan on the open market in California. PCIP will use a larger network of providers than MRMIP, approximately 65,000 should be available. The PCIP plan offers both in-network participating benefit levels and and out-of-network non-participating benefit levels.
Applications received by the 10th of the month will be enrolled for the first of the following month.
According to MRMIB, which will run the program for California, agents may assist applicants in the enrollment process for PCIP and receive a $50 fee the same as currently available on the MRMIP program.
Eligibility for the PCIP consists of the following:
1. California state residency as evidenced by applicant having a California address or other appropriate documentation as determined by MRMIB
2. US Citizenship and immigration status for applicants obtained through questions and supporting documentation
3. Applicant has a pre-existing health condition as evidenced by a denial letter from a health insurer or acceptance in a health plan which has rates in excess of PPO rates in the MRMIP (state risk program)
4. Applicant has been without creditable coverage for a least 6 months prior to applying for the PCIP
The California PCIP intends to provide enrollment to an estimated 23,000 California residents. By comparison, MRMIP, the state major risk plan, enrolls a maximum of 7,100. If the PCIP is a maximum enrollment in 2012, the federal government may grant additional funds to the CA PCIP to increase enrollments.
I will place a PCIP application on my web site as soon as it is available for download from MRMIB. It will be available here
Here is the final BROCHURE for the California PCIP including plan summary and rate guide.
PCIP Getting Closer in California
The PCIP (Pre-existing Condition Insurance Plan)aka Federal Risk Pool will be opening for enrollment in a few weeks.
MRMIB has published some very basic information including a rate guide summary for the PCIP in California.
You can view the summary including the proposed rates here.
Currently you may request an application be sent to you once they are available by sending an e-mail request to PCIP@mrmib.ca.gov
As of today there is no information on plan benefit design nor which carriers will offer plans.
CA Temporary Federal Risk Pool Approved
Yesterday, two legislative bills were passed in Sacramento which will allow for California to run a temporary risk pool using federal funds (under PPACA). The risk pool will provide coverage on a temporary basis until January, 2014.
The two bills, SB 227 (Alquist) and AB 1887 (Beall) will provide both parity for mental health and substance abuse (AB 1887) as well as the temporary risk pool for uninsurable California residents (SB 227). Passage of SB 227 was predicated on prior passage of AB 1887.
California will receive $761,000,000 of federal funds for the risk pool. State sources indicate that the risk pool will not use any California state funds.
Details including qualification requirements, insurance plans (will be PPO style) and rates should be forthcoming from the MRMIB. MRMIP will run the program alongside the state major risk program.