High Risk Pool – What Are They?
A high risk pool is a special program designed to help a very small percentage of the American population that does not have medical insurance provided to them through normal means. The majority of Americans, roughly sixty percent in fact, are covered for health insurance through their employer, also known as group health insurance. Another twenty-seven percent are covered by medical care programs sponsored by the government, such as Medicare, CHIP (children’s health care programs), military health care programs, and so on. This leaves only roughly thirteen to fourteen percent of the population that is not covered through these means, and for this small percentage, health insurance must be purchased through private health insurance companies.
A high risk pool is a state-sponsored program that is geared towards assisting Americans who are not covered by one of these programs or through their employer (such as those that are self employed, or who work for a company that does not offer health benefits), and are denied affordable health coverage because of a pre-existing condition, such as cancer, diabetes, or other long term illnesses.
The high risk pool was incorporated in 1976 in the state of Minnesota, and was intended to offer state sponsored health care plans that individuals could purchase. These plans came at a higher cost than a typical plan, but also guaranteed that the individuals would have some type of medical insurance. Thirty-four states currently offer plans of this nature, and roughly two hundred thousand people are currently covered by them. If you have been denied standard medical insurance because of a preexisting medical condition, and you do not receive group medical insurance from an employer or a state program such as Medicare, then this type of health insurance plan might be the best option for you.
The effectiveness of a given high risk pool varies significantly from state to state. Some states have created highly effective risk pools that have made a dramatic impact for those that require them, while others’ have been less effective, simply because they are poorly designed or have insufficient state sponsorship. The recent Affordable Care Act is designed to help mitigate the disadvantages of certain states’ risk pools, meaning that many citizens will now be able to take advantage of these unique medical insurance plans. A risk pool can help those without typical medical insurance change jobs and take other actions without losing their health insurance.
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