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Many Americans without health insurance coverage due to pre-existing conditions may find themselves with health insurance coverage due to the newly established Pre-Existing Condition Insurance Plan (PCIP.)

Starting today, July 1st, 2010 many states will start accepting applications for the new plan with coverage likely beginning on August 1st. You can check to see if your state is running their own program at the following website.

This temporary high risk pool of coverage for Americans with pre-existing conditions will expire on 2014 when denying individuals insurance based on pre-existing conditions will be outlawed.

The congress has already allocated $5 billion to the program, so if you fit the description, you are urged to apply immediately, just in case the program runs out of money if a higher number of people than anticipated enroll in the plan.

In New Jersey, for example, the department of banking and insurance has decided to run their own program under guidance from the Department of Health and Human Services.

General rules for the program are as follows:

  • You must be un-insured for over 6 months
  • You must be unable to get insurance due to a pre-existing medical condition
  • You must be a United States citizen or a national

Premiums will vary from state to state, but the coverage cannot be higher due to your medical conditions or age.

According to typical premium for the federally run program for a 50 year old will be between $320-$570.  To get an estimate of premiums, check out the details at the website for the PCIP.

The Pre-Existing Condition Insurance Plan will cover a broad range of health benefits, including primary and specialty care, hospital care, and prescription drugs. All covered benefits are available for you, even if it’s to treat a pre-existing condition.

Most plans will have a deductible for major medical services such as hospital visits and surgery and a maximum out pocket to limit the patient’s liability.