Health Insurance Blog

The struggling economy is causing significant issues for many states which provide health plans to assist low-income families.  Many states are being forced to pare back these health insurance programs at the worst possible time…when the number of unemployed Americans continue to rise and people need assistance the most.

The methods by which various states attempt to shave the costs of these programs range from cutting benefits, to freezing new enrollment, to raising the costs that must be picked up by the enrollee.

Among some of the state sponsored low-income health plans that are in trouble include:

• Washington Basic Health - Will fold in July unless $160 Million in additional Revenue.  About 300 Washington residents are added to waiting list each day.
• CoverTN - Tennessee’s state sponsored program.  Halted in December.
• CharterOak Health Plan - Connecticut’s program.  Must freeze enrollment this year unless lawmakers can find more money to keep it open.
• AdultBasic - Pennsylvania’s Program for low income adults.  Increasing fees.  Waiting list doubled in 2009
• General Assistance medical Care Program - Minnesota’s Program will end in March, existing members will be moved over to MinnesotaCare.

Among other viable options for low-income adults who are looking to lower their monthly health insurance costs, while insuring that they will be covered if they fall ill or are in a serious accident, would be to increase the deductible of their existing health plan.  This will keep monthly premiums down, but will require greater out of pocket costs if you should need to utilize medical care.

Despite the fiscal crisis being experienced nationwide, 14 states found money this year to increase health insurance coverage for an additional 250,000 children nationwide.

The states took advantage of $33 Million that was appropriated by Congress when it reauthorized the Children’s health insurance program (CHIP) back in February.

the 14 states that are expanding their children’s health insurance programs inlcude: Alabama, Arkansas, Colorado, Indiana, Iowa, Kansas, Montana, Nebraska, North Dakota, Oklahoma, Oregon, Rhode Island, Washington, and West Virginia

Since 2008, at least 21 other states have had to cut state sponsored health programs due to financial woes.  In addition the recession has caused at least 15 states to make cuts to Medicaid Programs during 2010-2011, and 8 states have made cuts to Medicaid benefits for 2009

Many states have state sponsored health insurance plans that are designed for “the working uninsured”.  Generally the monthly premiums of these plans are subsidized by the state and in order to qualify, applicants must have household income levels that don’t exceed 200% of federal poverty level, and being a resident of the state.  Each state has their own set of eligibility requirements.  For example in some states applicant may not have access to an employer sponsored health plan.

Some examples of these state sponsored plans for adults include:  The Healthy Indiana Plan, Insure Oklahoma, Washington Basic Health Plan, CoverTN, and BadgerCare.

Even if you don’t qualify for a state sponsored health insurance plan, because you make too much money or other reasons, there are many quality affordable health insurance plans available in each state.   You can compare plans online here at healthinsurancesort.com with no obligation.

According to the Curt Woodward, an AP writer, the health insurance rates that Washington residents pay for the state subsidized Washington Basic Health Plan are set to rise sharply.  Monthly premiums will rise from around $37 to roughly $62.  In addition, annual deductibles will rise from $150 to $250.

About 100,000 Washingtonians are enrolled in the plan, which is an affordable health insurance option for the “working poor”.  Those that make too much to be eligible for Medicaid, but can’t afford to purchase Washington health insurance coverage otherwise.

The number of enrollees in the state subsidized health plan as well will shrink as well, which will help keep the plan solvent.  The 100,000 enrollees will be reduced to a projected 65,000 over time.  Part of the reduction will be driven by moving people who are eligible for Medicaid over to that plan (roughly 8,000).

More information about Washington health insurance.

Washington state Insurance Commissioner, Mike Kriedler, is advocating regulating the currently unregulated health discount plans, that have become much more common over the past few years.  Specifically, Mr. Kriedler would like to enact legislation that would make these plans financially responsible for paying the health care expenses that they advertise.  Commissioner Kriedler states that he has received hundreds of complaints from customers who purchased these plans and received no benefits.

If his proposed bill passes, all discount health plans (offered in Washington) must be licensed by the Washington state Insurance Commissioner. They must clearly disclose that they are a health discount health plan and not health insurance. They cannot mislead the consumer and must list the services and products that are discounted.

The health plan bill recently passed the Senate and is up for a vote in the House.

If the legislation passes, Washington will join 33 other states in regulating discount health plans.The bill would take effect July 1, 2009.

According to The Seattle Times, starting Friday, Washington will begin to reduce their membership in the Washington Basic Health Plan.  The health plan, which is subsidized by taxpayers, provides health insurance to more than 100,000 low income Washington residents.

The enrollment is part of a drastic attempt to balance the state budget, but couldn’t come at a worse time for Washington’s low-income residents who have fallen on tough times due to the seonomic downturn.

Enrollees in The Basic Health Plan pay a fee based on how much they earn. The most an individual can make and qualify is $22,800 a year, and the average cost to taxpayers for each person is $217 a month.

More information about Washington health insurance plans.