Concerned with low enrollment in Pre-Existing Insurance Plans (PCIPs), the Obama administration is reducing premiums effective July 1 in two dozen states where the federal government runs PCIPs.
PCIPs were authorized by the Patient Protection and Affordable Care Act’s Interim High Risk Pool provision designed to temporarily cover individuals with pre-existing medical conditions until insurers and health plans must accept all applicants starting Jan. 1, 2014.
The remaining states that run their own PCIPs may also reduce rates, according to this Los Angeles Times story, which reports premiums could fall by as much as 40 percent based on more nuanced actuarial analysis.
While applicants will still have to demonstrate that they have been medically uninsured for at least six months, a requirement they provide evidence they have been denied coverage has been scrapped. Now a letter from a health care professional stating the applicant has a medical condition will suffice, according to The Times.
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