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Health insurance help for pre-existing conditions

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Health insurance help for pre-existing conditions
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The federal government is lowering premiums for a taxpayer-subsidized plan that provides health insurance for those with pre-existing conditions.

This special program was launched in 2010 and was originally expected to run out of money before it could cover everyone who needed it. But the opposite happened. People with pre-existing conditions either didn’t know about this plan or didn’t care to take part. Less than 20,000 people have signed up across the country.

In capitalism, when you can’t find a customer, you lower your price. Even the federal government understands that. The premiums have now dropped by 20% to 40%, depending on your age, circumstance and state. If you considered this pre-existing coverage plan before and found it too costly, give it a look now.

This could be ideal for someone who nobody wants to cover. It’s an opportunity to get coverage subsidized by your fellow American. Learn more about it at PCIP.gov.

Now, let me be perfectly clear in saying that I don’t believe in set-asides like this for special conditions. I believe there should be a procedure where, even with a pre-existing condition, you should be able to buy coverage from a traditional company. But in order to do that, you can’t allow insurers to cherry pick customers or allow customers to wait until they get sick to suddenly buy insurance.

My idea is different than mandatory purchase of health insurance, which is what we’re staring down the barrel of in a couple years in the United States.

I say leave it up to the people. You don’t want to buy insurance and then suddenly you get sick? Fine, I think there should be an 18-month waiting period before you’re covered. That’s how you let market forces do it instead of a government mandate.

Unfortunately, right now insurers do cherry pick in a way that I think should be illegal. Insurance should not be about risk management, where companies use computer models to slice and dice their customer base into smaller and smaller segments to exclude more and more people. That’s not a legit way that health insurance should be sold.

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Clark Howard About the author:
Clark Howard is a consumer expert whose goal is to help you keep more of the money you make. His national radio show and website show you ways to put more money in your pocket, with advice you can trust. More about Clark
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