$80 Million Available To States To Insure Those Too Sick For Conventional Coverage
The Department of Health and Human services has made $80 million in grants available for states that provide health insurance to residents who cannot get conventional health coverage because they are too sick.
The grants would be used by states to offset losses they may incur operating high-risk pools, which are typically state-created non-profit association that offers health coverage to individuals with serious medical conditions. Enrollment in these pools is growing, with more than 153,000 individuals enrolled in state pools.
The funding will be awarded over two years, as authorized in the Trade Adjustment Assistance Reform Act of 2002. To be eligible, a state must have a “qualified” high-risk pool that meets the criteria specified in the Trade Act and must follow such rules as capping premiums at no higher than 150 percent of the standard charge in the state.
States may be eligible for a grant that matches up to 50 percent of the losses incurred in the operation of the risk pools. Funds will be distributed based on the number of uninsured individuals in each state. HHS’ Center for Medicare & Medicaid Services (CMS) will administer the program.
To date, 22 states have high-risk pools that meet the “qualified” criteria. In November, HHS also announced the availability of grants of up to $1 million each for states to use as seed money to establish high-risk pools. A total of $20 million is available under that program.
