High Risk Pool - An Option for the Uninsurable

With the eligibility policies of health insurance, manyenrolled do not have much coverage at all may incur
Americans do not have medical insurance. One waylarge medical costs. An example of this type of
to help provide people with health insurance coveragesituation is Minnesota's high risk pool, which only costs
that may not normally qualify is a risk pool. A health$215 every 4 months, but there is a $10,000 deductible
insurance risk pool provides state-sponsored healthand no other health care or preventative care
insurance to those with pre-existing health conditionscoverage until the insured has spent his own money to
that may not be eligible for private health insurance.reach the $10,000 deductible in one year. Oftentimes
One of the drawbacks of high risk pools is that theythere are lifetime expenditure caps, or maximums, and
are typically expensive, more expensive than privateonce the cap has been reached, the high risk pool will
medical insurance.no longer pay any medical expenses.
People with health conditions like diabetes, cancer,High risk insurance pools began appearing in 1976, with
heart disease can become self-employed or switchMinnesota being the first state to offer this type of
careers without the fear of losing health careplan. In 2008, only about 200,000 of people that are
insurance benefits by utilizing a high risk pool. Currently,uninsurable via private health care are benefiting from
34 states offer a high risk pool and the plans varya state high risk insurance pool. A national pool has
state by state. Not only do the benefits and pricesbeen proposed many times, but it continues to be
vary, but so do the methods of operations and funding.unsuccessful. In lieu of a national pool, federal tax
A high risk pool is typically expensive; sometimes asmoney has been provided to states so that the risk
much as double the average policy price, serving onlypool plans can be improved. In 2014, the Patient
a very small number of uninsurable people. But, theProtection and Affordable Care Act will be
option is still there for those that can afford it, and itimplemented and people with pre-existing and chronic
can help many people.health conditions will find it easier to afford regular
High risk insurance plans that are less expensive thatmedical insurance. This new act will prohibit all insurers
most other plans offered do not provide much morefrom charging high rates or denying coverage to
than catastrophic insurance, which means that thosepeople with pre-existing medical conditions.