New Health Care Plan is Already Sick

 

An article in yesterday’s Washington Post is already predicting possible cost overruns due to higher-than-expected costs associated with the government’s new Pre-Existing Condition Insurance Plan.  The plan is designed to cover people who have trouble getting insurance due to a pre-existing condition (i.e. you’re already sick).

The article poses the question of whether the $5 billion (‘b’ as in ‘broke’) allotted by Congress to start up the pools will be enough.  That as enrollments which were predicted to be around 375,000 are only hitting 8,000.

The plan’s home page even states that the plan “doesn’t charge you a higher premium just because of your medical condition.”

To be eligible for the plan, you must meet some very clear requirements:

• You must be a citizen or national of the United States or residing in the U.S. legally.
• You must have been uninsured for at least the last six months. Please note that if you currently have insurance coverage that doesn’t cover your medical condition or are enrolled in a state high risk pool, you are not eligible for the Pre-Existing Condition Insurance Plan.
• You must have a pre-existing condition or have been denied coverage because of your health condition.

The article cites two cases in which the plan has helped someone who was otherwise uninsurable or would have paid a much higher rate.

• First is a 50 year-old woman who was recently diagnoses with an aneurysm.  The woman had no health insurance after dropping it in July of 2009 due to costs.  She will now “pay” $358 a month for her insurance that will cover her surgery in January – surgery that could cost tax payers well over $100,000 to perform.
• Next is a 57 year-old male who was diagnosed with AIDS in 2002.  He was forced into bankruptcy after his insurance would only cover a small portion of his $3000/month prescription bill.  Now, thanks to this new health care plan, he can pay $600 a month in return for the government paying his $3000/month medicine bill.  (The article notes the man was “floored” when he found out how costly the plan was.  I guess paying $600 a month to save $3000 a month and your life wasn’t generous enough in his eyes.)