Health reform plan for 'uninsurables' winds down

http://vitals.nbcnews.com/_news/2013/02/17/16994731-health-reform-plan-for-uninsurables-winds-down?lite

By RICARDO ALONSO-ZALDIVAR, Associated Press
Feb. 17, 2013

WASHINGTON -- Citing financial concerns, the Obama administration has begun quietly winding down one of the earliest programs created by the president's health care overhaul, a plan that helps people with existing medical problems who can't get private insurance.

In an afternoon teleconference with state counterparts, administration officials said Friday the Pre-Existing Condition Insurance Plan, or PCIP, will stop taking new applications. People already in the plan will not lose coverage.

Designed as a stopgap solution until the law's full consumer protections are in effect next year, PCIP has served more than 135,000 people, a lifeline for patients with serious medical problems such as cancer and heart failure. But Congress allocated a limited amount of money, and the administration's technical experts want to make sure it doesn't run out.

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Starting next January 1, insurance companies will no longer be able to turn anyone away because of poor health. At the same time, the federal government will begin subsidizing coverage for millions of individuals who have no access to employer plans. That means many of the people currently in the PCIP program may end up with lower premiums once the government's financial help is factored in.

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