Broke, ObamaCare, Pre-existing insurance plans closing

The State Pre-existing Insurance Plans were set up by ObamaCare to cover those that could not get coverage otherwise, until the advent of the final regulations this January.  I have reported previously that it is completely broke.  If you call their offices they have a message that says e- even if you are covered, they may not be able to pay your claims.

HHS recently asked states to accept lower funding for the rest of the year, or shut down the State Programs and forward those covered to the Federal Government PCIP.  Conspiracy theorists will undoubtedly point to this as one more way the Obama administration is moving people to nationalized coverage.  In any event… it occurred, even though enrollment was far lower than expected, the claims of those covered was far more than expected.  If they had just asked a broker how this would work out…

The anticipated response from the States is now arriving.  Broker, and with reduced funding, 18 states are closing the plans down, leaving only 9 states with PCIP plans .  The National Association of State Comprehensive Health Insurance Plans said in a letter that it fears “catastrophic disruption of coverage” for the PCIP enrollees.  The big problem, as I see it, is that the Federal Program only has one benefit plan.  The North Carolina PCIP offers 4 plans, so with the shift, participants will also get new premiums, and different benefits – and perhaps increased out of pocket costs.