Why Are New High Risk Health Insurance Plans Unpopular?

In 2014, high risk health insurance pools will no longer be necessary. That is because the Obama administration's healthcare reform law will eventually forbid health insurers from denying coverage to people with pre-existing conditions.Currently, states' high-risk pools serve that purpose. Many states already had their own pools for the uninsurable, but enrollment levels were capped and premiums extremely high.In order to alleviate those problems, the federal government is giving partial grants to states who want to create new health insurance plans for this demographic--as long as they fit certain guidelines (which many existing options do not). There is also a national pool for residents of states that choose not to participate. A total of $5 billion was allocated to the program in the legislation.Advocates hope that the new guidelines will result in lower rates that keep more people insured when they need it most, but there are indications that states may be running into the same pitfalls.For example, enrollment in North Carolina's program is falling far behind initial estimates. Although coverage under the federal plan is still cheaper than the state's first high-risk pool, it is still nearly $350 per month. That amount is unaffordable for many. Qualified applicants will also have had to have their health insurance lapse for the past six months, a lifetime for the uninsured with pre-existing conditions.These factors--as well as a lack of publicity and the lag time required to provide proof of eligibility--may contribute to the fact that only 300 people in the state have signed up for the plan so far, according to plan administrator Inclusive Health; a small fraction of the 100,000 residents predicted to be eligible.