NAHU Washington Update – 07/02/2010

Yesterday was a big day for implementation of some of the Patient Protection and Affordable Care Act’s most immediate provisions. The Department of Health and Human Services unveiled its new consumer Web portal, www.healthcare.gov, a number of states and the federal government began accepting applications for new programs to cover previously uninsured individuals with serious medical conditions, and a new tax on indoor tanning services went into effect.

The new consumer Web portal is geared toward individuals and small business owners to allow them to compare private health insurance option information, as well as obtain information and applications for public health coverage programs like CHIP and Medicaid on a state-by-state basis. It was required by the PPACA to serve as a central repository of information about coverage options and the rollout of the PPACA’s provisions until states begin operating their own health insurance exchanges with online components in 2014. 
 
The portal is intended to be an evolving site, with information options being added between now and October 1. While the site does not currently contain a direct link to information about how to contact independent agents and brokers, NAHU has met with HHS and White House officials in the last few weeks to discuss adding this option in the near future. In addition, NAHU worked with Representative Charlie Melancon (D-LA) to craft a bipartisan letter from leading members of Congress that was sent to HHS Secretary Kathleen Sebelius this week urging the inclusion of independent health insurance and agent and broker contact information in the portal. 

One of the coverage information options included in the new web portal is the Pre-Existing Condition Insurance Plan (PCIP), the federal government’s new subsidized high-risk pool coverage option for previously uninsured individuals who have serious medical problems and previously had trouble accessing individual coverage. The PPACA gave states the option of operating their own such program by July or allowing for a federally administered plan in their state. 

Twenty-nine states and the District of Columbia have opted to start their own plans, and 21 states will allow residents to enroll in the PCIP program. To be eligible for the coverage, people must have been denied coverage by a private insurer due to a preexisting condition, and they must have been uninsured for at least six months.

The federal PCIP plan and many state plans began accepting applications for enrollment yesterday. The hope is to actually begin covering individuals in August or, in some states, later this fall. Eligible residents of Montana and Pennsylvania can apply for and obtain coverage now.

One of the major issues with the new program for uninsurable individuals is its cost. The PPACA appropriated $5 billion in funding for it over the next three years, and analysts at both the federal Centers for Medicare and Medicaid Services (CMS) and the Congressional Budget Office (CBO) have indicated that this amount will not be nearly sufficient to cover all eligible individuals across the nation, and that funding could run out as early as 2011. Most state programs have indicated their plans will cover individuals on a first-come first-served basis, so early applications are essential.