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Subscribe to RSSWASHINGTON -- Citing financial concerns, the Obama administration has begun quietly winding down one of the earliest programs created by the president's health care overhaul, a plan that helps people with existing medical problems who can't get private insurance.
In an afternoon teleconference with state counterparts, administration officials said Friday the Pre-Existing Condition Insurance Plan, or PCIP, will stop taking new applications. People already in the plan will not lose coverage.
Designed as a stopgap solution until the law's full consumer protections are in effect next year, PCIP has served more than 135,000 people, a lifeline for patients with serious medical problems such as cancer and heart failure. But Congress allocated a limited amount of money, and the administration's technical experts want to make sure it doesn't run out.
Health and Human Services Department spokeswoman Erin Shields Britt said PCIP has "provided needed security to some of our nation's sickest people."
The plan covers people who have had problems getting private insurance because of a medical condition and have been uninsured for at least six months. Premiums are keyed to average rates charged in each state, which means they're not necessarily cheap, often amounting to several hundred dollars a month for middle-aged individuals.
"We're glad this program was here and able to help," said Amie Goldman, who oversees the program in Wisconsin. "I'm certainly disappointed we won't be able to serve everyone who has a need for this coverage."
Starting next January 1, insurance companies will no longer be able to turn anyone away because of poor health. At the same time, the federal government will begin subsidizing coverage for millions of individuals who have no access to employer plans. That means many of the people currently in the PCIP program may end up with lower premiums once the government's financial help is factored in.
The enrollment suspension will take effect immediately in 23 states where the federal government administers the program, Goldman said. Residents of states that run their own programs may have longer. Wisconsin residents, for example, have until March 2 to apply.
Enrollment around the country has been lower than expected, partly because some people could not afford the premiums. But individual cases have turned out to be costlier than originally projected.
In documents provided to the states, the administration said the program has spent about $2.4 billion in taxpayer money on medical claims and nearly $180 million on administrative costs, as of Dec. 31. Congress allocated $5 billion to the plan.
"From the beginning (the administration) has been committed to monitoring PCIP enrollment and spending closely and making necessary adjustments in the program to ensure responsible management of the $5 billion provided by Congress," PCIP director Richard Popper wrote in a memo. "To this end, we are implementing a nationwide suspension of enrollment."
The sole exception: program beneficiaries who move to another state will still be able to get coverage in their new home.
Associated Press writer Ann Sanner in Ohio contributed to this report.
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People blame democrats for rising healthcare costs. Question ? When the republicans had power of both houses for 6 years,2000 to 2006 , and controlled the white house for eight years. What legislation did they pass to help keep healthcare costs down? The answer --------------------less regulations --------------------------- the results , premiums went up, denials for coverage went up, cap limits came down , judgements on procedures by insurance advisory boards went up. That's all I can think of,but ,that plan was a hell of a plan considering that the brains in washingeton had to concentrate on the illegal war in iraq ,and not getting bin laden when they had the chance in the tora,bora mountains. Plus ,they de-regulated the credit card companies, wall street, big oil ,just to name a few. Jobs leaving this country faster than a speeding bullet. YEP, those were really good times.
stone,
It's not the government's job to keep costs down on ANYTHING. It's the market place that does that! 99.99% of the time, when the government gets involved, prices go UP faster than the cost of living!!
Wake the phuck up!!
We don't want govt meddling in our private decisions about healthcare so we would have hated the Republicans as much as the marxist Democrats had they done so.
Secondly, cite for us a single bill passed and signed by Bush that cut regulations to the Healthcare industry.
Likewise, cite for us a single bill passed and signed by Bush that de-regulated the credit card companies, wall street, or big oil?
How about the prescription drug bennefit. A 1.3 trillion dollar give away to big pharma.
one of the things i like about " cannot be denied ", is that , if you're a reasonably healthy person, you can utilize the penalty fee in lieu of insurance premiums, and then if you do at some point develop a health problem, you can sign up for insurance, and you cannot be denied because of that pre-existing condition.
ron,
Can you ask an insurance company to cover your auto AFTER you get into an accident and INSIST they fix your car?
with obamacare, that's exactly what you CAN do ------ don't gripe at me, i'm not the one who drafted this idiotic law. ------------------ but i'll make you a wager that thousands of people will do exactly like i just described.
ron,
Sorry, I didn't know you were being sarcastic. (Trying to finish the Blackhawk game at the same time!!)
Bernie ,did you notice what happened on wall street that started in 2007 ? My wife and I did . We lost several thousand dollars in mutual funds because no one was watching those idiots gamble everyones money away . The reason that happened ____— Scaled back de-regulation because the republicans said that goverment doesn't need to get in volved in free market . Put it this way . If you feel that way ,maybe goverments shouldn't have laws that says what is a crime. Leave it to the people to decide what is right and wrong.
Actually, it was Clinton and his key financial advisors who supported legislation that ended Glass-Stegall. There never had been much regulation that dealt with derivatives and the other, more exotic financial instruments.
In 1999, Freddie and Fannie came under pressure from the Clinton Administration to expand mortgage loans to low and moderate income borrowers by increasing the ratios of their loan portfolios in distressed inner city areas designated in the CRA of 1977. Because of the increased ratio requirements, institutions in the primary mortgage market pressed the GSEs to ease credit requirements on the mortgages it was willing to purchase, enabling them to make loans to subprime borrowers at interest rates higher than conventional loans. Once those credit requirements were lowered, the use of unconventional mortgages expanded rapidly across the country causing the housing bubble.
It was government involvement and interference in the housing market over a 30+ year period that caused the housing bubble. Money will ALWAYS flow to where the federal government enables easy money to be made.
stone,
I lost also.....However, smart regulation is different than trying to manipulate.
No one is saying that the government shouldn't put up a stop light at a busy intersection.
Peter17 you are so correct. A report issued on Examiner.com back in December WHICH NONE OF THE MEDIA PICKED UP FOR SOME REASON, outlined in Detail, going back to Jimmy Carter and stopped by Bush, but Continued in earnest by Clinton, and the next Bush got left holding the bag as to say..how the Demoncrat Policies created the crash and the only reason the Banks were bailed out is because the Demoncrats were terrified the truth would be revealed and Obama would have lost by a LAND SLIDE...SO apparently the Banks made a back room deal with the Demoncrats who would put on a Song and Dance and blame Bush, while bailing out the Bankers who they screwed over with Taxpayers money...
Perter, Phill Gramm was the one who pushed the hardest for repeal of Glass-Steagall. Deregulation is a mainstay of republican politics and one of Clinton's biggest mistakes not involving blue dresses. In case you are ignorant of the US constitution, it is Congress, not the president, who has the power to pass or repeal legislation.
Peter17,you are absolutely correct re.Glass-Stegall,clinton and rubin wanted it so bad,they enlisted(bribed)graham to push reluctant republicans to push it through.Regardless of his help ,the repeal under clinton is why we are stuck with this mess now.obama would not even be a drip down the electorite's leg without it.So however bad this gets,and as terrible as obama is,the blame lies with clinton.
I'm afraid that if we don't repeal Obamacare soon, it'll become just like Social Security: something we are stuck with regardless of whether or not it works. And just like Social Security, it will become a source of government waste, money laundering, and unfulfilled promises. And just like Social Security, any politician who proposes making any changes to it will be labeled an extremist who doesn't care about the average American. And just like Social Security, the American education system will brainwash children into thinking it works just like they brainwashed students into thinking the New Deal ended the Great Depression.
This is very sad - when human life becomes more important than money is when humans will be evolved creatures - till then we are still savages....
ZZ,
Huhhhhh?
considering the rate of violent behavior in our society, i'm guessing we will be savages for awhile yet.
Here is what A FRAUD THIS PROGRAM WAS, there are over 2 million people in this category and they only "Cherry Picked" 135,000 people out of 2million or more...Another Obama fraud and scam...This Affordable Insurance quoted me $799 a month and a $3,500.00 deductible with $75 co-pays for everything from Medication to Office Visits...This meant, since I am on a fixed income, I would have to come up with an additional $15,000 a year...So again,,at lot of Talk from Obama and as usual, you get screwed while he thinks he did something..
and what's another name for medical cherry-picking ???? ----- triage... ------ which means some buerocrat was deciding who received treatment.
This is such a "GREAT" program, there are 2,000 waivers to it.
I'm laughing...........I'm laughing some more........
Obamacare is costing me 1200.00 a month and it has not been fully implemented yet. I will be one that will discontinue my healthcare because I can no longer afford it... Thanks stupid OBAMA
tdj1,
Harvard Law Review and all, Obama is the DUMBEST man ever to be president!
The welfare state is here. Change the Stars and Stripes to a food stamp.
The government program spend 7.5% on administration which is about half what private industry spends. Of course the government does not hire people whose job it is to come up with reasons to deny claims.
This program spent $180 miilion on administration of a $2.4 billion program. That's less than half what private insurance costs for administration & profit. The government run program was TWICE as efficient as private industry, filling a niche that private industry won't touch due to lack of profit potential.
We spend more on war than we do on improving American's lives though infrastructure and health care. I can't get insurance in the US due to a pre-existing condition, but my pre-existing condition has cost me only $400 in medical expenses in the past 10 years. I don't know why insurance companies think I am such a huge risk. I have had my condition carefully examined and my doctor has said I have nothing wrong with me... other than having been diagnoses with an uninsurable condition that does not affect my day to day life.
I attempted to purchase insurance. I was turned down for every product B.C.B.S offered. I was advised I would have to go into a state pool and pay over 1,200 a month. When I asked for an explanation, since I do not take medication or have any on going chronic medical condition they advised I saw an allergist in the past year and feel I need to be in a high risk pool. The policy I wanted was a little over three hundred a month, they insisted I go into a high risk pool for 1,200. I feel that my fee was to off set the cost of individuals with chronic and costly medical conditions.
I agree with moogley, there are many ways to fix the problem. This is multi-factorial. You need Insurance Companies, Hospitals,Md's (I am a mid-level provider) and ancillary services to all contribute to this endeavor. If a hospital can reduce a fee by 50% for an insurance company, they can work with individuals in need of care. Insurance companies are in business to make money, and continue to find ways around every attempt to assist individuals with medical care.
I like the idea of Medical students/Providers staffing clinics, in fact, if we all gave of our time we could reach many in need of medical care. We would also have to get the pharmaceutical companies involved to assist with medications. The reality, Medical facilities,Pharmaceutical Companies and Insurance Companies are a "Business"
I hope I see some changes in my life time-Thumbs up Moogley
Sign me up!
Wonderful. The guaranteed out for everyone who would have otherwise been fined for not agreeing to buy forced insurance: pre-condition. Gotta be lovin' it. Idiots in charge.
Key point: Look at how grossly inadequate the fed.gov funding was for the most important part of this new tax bill. Imagine what skimpy money is scheduled for the rest without pre-conditions. (That's you.) Grab your Vaseline and bend over, the fed.gov is here to help you.
They won't need SS to kill the weak and sick; you'll die waiting in line at the hospital ... well, on the sidewalk leading to the hospital if you get that close. The fed.gov has now positioned itself as "the enemy"; its soldiers are the politicians masquerading as your representatives. Hint: "We the people" out number them. No wonder they want your guns. ©2013
I like the opening line of the story..."citing financial concerns"...
when has this administration ever been concerned about finances?? call the loan shark in China...
Did anyone else see this coming,,the first failure of a doomed "forced" entitlement.
I never understand people like this. They don't like something, so they figure out some kind of way to @!$%# it up.
Let me state I think the healthcare system needs improvement but we took the wrong path.
Help me understand how an individual that isn't provided insurance through work at an affordable cost can afford Obamacare? Won't they somehow just pay the fine and continue to use the ER? They have already agreed to discriminate against people who smoke and increase their rates by 50%. Next will be your BMI index and then family history.
The cost of PCIP in Nevada (where I spent my entire life before leaving the USA 10 years ago) is $203/mo. I can surely afford that as I think most working people can... unless they value cell phones and cable over their health.
TIDubai. I'm assuming that is for an individual policy. You're assuming personal responsibility is at play, I doubt the cell phone or cable will be terminated in favor of healthcare when you can still head to the ER.
Unfortunately you may be right. I'd love to be able to live in the USA again (I was born there and am American), but with no access to health care, I'll be staying here and keeping my money and business out of the USA.
I just don't see how the increase in administrative cost including but not limited to the IRS will be offset by the fine and the hospitals will still be holding the bag for non-insured ER visits which eventually insured individuals pay.
Unfortunately many business owners are cutting hours to part time status to avoid the added cost. This only adds to the number that have no choice but pay the fine and head to the ER.
There are two groups of people that won't be getting insurance unless their parents can afford it or the companies they worked for continues to let them buy their health insurance and both are the most expensive groups. These are the young adults 19 to 25 years old and those who are 62 to 65 years old. Some companies pay for insurance if their kids are enrolled in college and get good grades. Well that leaves about 70% of all college age kids out. Then you have those who took vocation classes in high school that could have insurance if they had a job, but not before waiting 90 days and some places 120. Employers want to know that you are going to be around for the longhaul and that is very cheap. I think that if a person worked 30 days he or she should have health insurance. Either way, both these groups are out of luck. Suppose you werea housewife all your life and at 62, your husband dies. The wife takes his SS because she has no other means to support herself. No one is eligble for Medicare until they are 65.
I am in my 40s, own my own business but can't get insurance due to a pre-exisiting condition. I know lots of people that have moved overseas who are in my same situation. The USA is just shooting itself in the foot by forcing these people out to Spain, Czech Republic, here in the UAE and lots of other places where health care works.
I didn't understand that whole article, except it wasn't working out like they thought.
That would be fine with me. If I had the right to be cut from insurance. But it's the fact that they order you to pay their friends and they won't let that happen to their buddies. Just like their friends in banking and stock markets. Obama is going to make sure they are paid well.
There are millions and millions of people who did not even get a chance to sign up, and the insurance bill for Obama is so far in the black hole of debt that is our government that every one without rose colored glasses tried to tell him it would be.
All Obama and his socialist liberal government did was grand standing. That is all they have ever done for 4 years plus.
Typical government half-a$$ed plan, an Obama special!!!
It wasn't even NEEDED to begin with; every state already HAS guaranteed plans. Good riddance. Too bad they spent hundreds of millions on it.
Nevada has no guaranteed plan... nor do more than a dozen other states.
Yes they do. It's called medicaid.
I earn $50K per year and my wife earns about $35K. We are self employed. There is no guaranteed-issue health insurance available to us in Nevada.
You make 85K together and you can't afford health insurance?
Of course I can afford it, but I have a pre-existing condition and no insurance company will sell me insurance. I earn to much to get medicaid and my "condition" is an auto-decline with every insurance company... even though I have spent less than $1000 on medical bills in the last 10 years to treat my condition. We are self-employed so there is no employer option available.
We have to figure out a way so that the sick, poor people who cannot work can still get health care when they need it. People who say this is going to raise premiums for the rest of us - DUH! But people need health care. What kind of animals are you?
People who can not work get disability,the deadbeats can rot.
@ Tera ~ there is only so much money to go around. People need to be more responsible for their own lives and families. Quit smoking. Quit drinking. Get up and move around. If you are on medicaid or welfare - don't have any more children. If your life is in a hole - quit digging!
I was born with a pre-existing condition, am self employed and earn plenty of money, but no American insurance company will cover me. This is a problem and is what drove me to take all my money and business and leave the USA. I'd love to come back but I can't buy insurance... I can afford it if someone will sell it to me.
I have put more than half a million dollars into foreign economies rather than the USA since I can't live there anymore without insurance.
Gee Whiz! Papa Obama's Great Health Plan For America ....is only working for part of America.....
Who would have thought?