Healthcare

High-Risk Pools

The Republican healthcare reform plan pushes the idea of high-risk pools even though around 31 states already have high-risk pools..

The problem with the pools is that they're really awful. The premiums are "1.5 to 2 times higher" than a standard policy premium, and the deductibles are three-times more expensive. While these rates are more or less scaled based upon risk, the costs are prohibitively high.

It's worth noting that the House bill sets up temporary high-risk pools as an interim stop-gap until the exchanges are launched. However, those of you who followed this thread will know that the House bill caps premiums for the temporary pool at 125 percent of a standard premium (despite my crappy math skills, that's only 25% more than a standard premium, compared with nearly double in the current system). This will allow high-risk Americans to pay significantly less for health insurance than the current high-risk plans offer.

The key for the House bill, however, is to make sure that once it's set up the public option doesn't become the de facto high-risk pool.