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Oxendine Rejects High-Risk Pool for Georgia Uninsured
Copyright 2010 A.M. Best Company, Inc.All Rights Reserved BestWire
April 14, 2010 Wednesday 01:38 PM EST
511 words
Oxendine Rejects High-Risk Pool for Georgia Uninsured
Sean P Carr
ATLANTA
Georgia Insurance Commissioner John Oxendine said the state will not participate in a federal program to establish high-risk pools for the uninsured, part of the new health care reform legislation. In a letter to U.S. Health and Human Services Secretary Kathleen Sebelius, Oxendine said he has "no confidence" the "so-called temporary program will not burden the taxpayers of Georgia" and fears it could become the state's responsibility as an unfunded federal mandate."I cannot commit the State of Georgia to implement a federal high-risk pool program that is part of a broader insurance scheme which I believe the Supreme Court will hold to be unconstitutional," Oxendine wrote.Oxendine is a Republican candidate for governor.Earlier this month, Sebelius sent letters asking which states would be interested in forming temporary, high-risk pools, or expanding on what they already have (BestWire, April 5, 2010). The program -- to be established with $5 billion provided by the newly passed health reforms -- is voluntary for states and is designed to provide coverage to uninsured people with pre-existing conditions. The program money is scheduled for availability beginning on July 1, and the program will shut down in 2014, when pre-existing condition restrictions are banned in all health insurance.Sebelius said she will await the responses from governors or independent state insurance commissioners. But in the letters to state officials, she also said the department is authorized to go ahead with the program even if states decline through contracts with private, nonprofit entities. HHS is asking states for letters of intent by the end of April that indicate whether they'll be applying for inclusion in the program (BestWire, April 5, 2010).According to a report from the U.S. Government Accountability Office, 35 states were already running high-risk pools of their own in June of 2009. In 2008, almost 200,000 people were enrolled, and about 4 million more were considered eligible. That year, the plans paid out about $1.9 billion in claims -- averaging $9,437 for each enrolled person. Premium revenue paid for 54%, and another 23% was paid for by assessments on insurers. Minnesota and Texas had the highest numbers enrolled.Georgia does not have a high-risk pool, insurance department spokesman Glen Allen said. Oxendine has not been in discussions with other state insurance commissioners about how to react to the pool program, he said.Attempts to reach Oxendine for comment were unsuccessful.During the National Association of Insurance Commissioners' spring meeting in Denver in March, NAIC leaders said commissioners will work together on common responses to implementing health reforms when possible (BestWire, March 29, 2010). "There has been active discussion among NAIC members with a wide variety of views and approaches," said Pennsylvania Insurance Commissioner Joel Ario, who advised U.S. Senate staff and the Obama administration on technical aspects of the legislation.(By Sean P. Carr, Washington Correspondent: [email protected])
April 15, 2010
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