High-risk Pennsylvanians given new hope for insurance
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Pennsylvania will begin accepting applications for its new high-risk health insurance plan starting Wednesday, offering coverage for Pennsylvanians who are unable to obtain insurance because of disqualifying medical conditions.
But given the cost of the coverage -- nearly $300 a month, plus co-pays and deductibles -- the state isn't sure what kind of reception the plan will receive.
On Monday, the state Department of Insurance announced that its new plan, funded through the federal health care reform law, would be called PA Fair Care. It will be administered by Pittsburgh's Highmark Inc.
"Full federal health reform is still three years away," said state Insurance Commissioner Joel Ario, in a statement. "In the meantime, we are doing everything we can for Pennsylvanians to have access to affordable, quality health care."
Pennsylvania is one of 29 states accepting federal money to operate its own high-risk pool. It is receiving $160 million to run the plan through 2014 (if the plan's expenses don't bleed the fund dry before then).
Most of that money, 90 percent or more, will go toward patient care with the remaining share spent by the state for administrative expenses to Highmark for its contract work. The Insurance Department is still negotiating Highmark's precise per member, per month administrative fee, but at the outset Highmark is being paid to staff the toll-free hot line (1-888-767-7015) and handle the application process.
Applying online, at www.PAFairCare.com, is the fastest route to enrollment. Residents without Internet access can apply by phone, but that will take longer. Applications will be online at 8:30 a.m. Wednesday.
Premiums will be $283.20 a month, and the program is initially expected to serve 3,500 people on a first-come, first-serve basis. Benefits will kick in four to six weeks after eligibility is verified and first premium payment has cleared.
Insurance Department spokeswoman Rosanne Placey said nobody's sure what the demand will be -- enrollment in the high-risk pool being operated by the federal government has been slow thus far, two weeks after the program started taking applications. "We're planning for things to move along very quickly," she said, but the cost may still be prohibitive for many of the state's 1 million or so uninsured adults.
First Published August 3, 2010 12:00 am
