High-risk insurance pools might be making a comeback thanks to the seemingly imminent end of the ACA, but some experts wonder if this particular bridge to the future might come with a toll that’s way too high, Kaiser Health News reports.
High-risk insurance pools separate people with pre-existing conditions or who are very ill—whose medical costs are likely to be off-the-charts, in other words—from those who are relatively healthy. Health plans charge higher prices to those with existing medical conditions without having to pass a lot of those costs onto the consumer thanks to other sources of funding, including the government.
The ACA ended the polls, thanks in part to its individual mandate that in theory spreads the risk so that there are enough healthy enrollees who could counter the costs of those whose care is more expensive. The ACA also provided funding to insurers to help pay the costs of poorer individuals.
Kaiser Health News: “But critics say even some of the most successful high-risk pools that operated before the advent of Obamacare were very expensive for patients enrolled in the plans, and for the people who subsidized them—which included state taxpayers and people with employer-based health insurance.”
Source: Kaiser Health News