Under the new health care reform laws each state has the option of setting up a high risk pool insurance plan. The state of Indianapolis has declined to participate in this high risk pool. Currently we have a high risk pool called Indianapolis ComprehensiveHealth that will contiune to operate seperatly from additional high risk pools.

The state of Indianapolis decided that the federal Gov can set up the High Risk Pool. There are many reason for this but the one that jumps out is cost. Under the Health care Act there has been $5 billion dollars allocated to these high risk pools. This is to fund the plans until the health insurance excahnges go into effect. Its not nearly enough money. Currently in our country we have about 200,000 people on some type of high risk pool insurance. These plans are running $2 billion a year. That $5 billion will be gone in the first year because there will be more than 200,000 on those plans. Then each state will have to fund these plans.  Where will they get the money?

Along with the fuzzy math from the Federal Gov comes along some rules with the high risk plans that makes no sense. First aspect is the premium rate. It is stated that the premium for these plans have to be the same as a standard plan. The problem here is a lot of people will switch the high risk pool because it will be much cheaper than what they are currently paying. Then funding the plan because a huge problem because the premiums are too low. The second major problem is to be eligible for the high risk pool plan you have to be uninsured for 6 months. So all of the capable/responsible people that have been paying high premiums on current high risk pools will not eligible.

These Federal High Risk Pools are going to be a mess.