Insurance companies can have strange working methods. They refuse to cover people who are in need of health coverage the most. These are people who already suffer health problems and have to incur considerable medical expenses. Well, the insurers have their reasons, but for people in need of insurance for preexisting conditions, this limitation in insurance can be extremely debilitating.
What does insurance for preexisting conditions offer?
Preexisting condition insurance plan or PCIP was introduced in July 2010 and covers primary and specialty care, hospital expenses and prescription drugs. Premiums are higher for PCIP when compared to normal policies and change from state to state. Income and the kind of existing illness are not eligibility factors.
What are the eligibility criteria?
PCIP conditions for qualification are pretty straightforward. Ironically, eligibility criteria are tougher.
Insurance for Preexisting Conditions: Government Initiative
PCIP was formulated under Affordable Care Act. The federal government offers funds under this Act to run PCIP programs. The Department of Health and Human Services is constantly pushing for lower premiums and better coverage for people who require health coverage the most.
What is the future going to bring?
2014 is going to be one of the major milestones in the health insurance industry. From 2014, all public and private insurance company will be prohibited by law from refusing insurance for people with illnesses. What is more, the new insurance regime forbids any increase in premiums or deductibles for people who suffer life threatening illnesses such as cancer, cardiac ailments, asthma or diabetes. Eligibility criteria are going to be relaxed. In several states of America, premiums have already dropped by as much as 40 percent, especially in states where PCIP is controlled by the federal government.