Three Popular Insurance Programs for those with Pre-existing Conditions Ending Soon

RENO, Nev. - Aug. 29, 2013 - PRLog -- Effective January 1^st, 2014, three of the most popular methods for providing health insurance coverage for people with pre-existing conditions will come to an end.  Coverage with two of these health insurance programs, HIPAA and PCIP, will end on December 31^st, and enrollments on the third “State Continuation” program will be denied after January 1^st, 2014.

Individuals currently in these three groups, including those with pre-existing conditions, are expected to obtain full coverage for their pre-existing conditions using plans available in the Open Market or on the new Nevada Health Insurance Exchange.

In the past, it was common for individuals who completed COBRA continuation coverage from their prior employer to sign-up for an individual HIPAA (Health Insurance Portability and Accountability Act) health insurance plan.

This Act requires individual health insurance companies to offer their two most popular plans to those individuals that have completed their COBRA coverage. The monthly premiums that the insurance companies charge for HIPAA plans is restricted by statute, but the general experience for most were high premium rates.

Effective December 31^st, 2013, all HIPAA plans in all states, including Nevada, will come to an end.

Everyone that has had HIPAA coverage in the past, or will be having their COBRA coverage terminated in the future, are expected to obtain guaranteed issue coverage either through the Open Market or through their State Health Insurance Exchange.

The Pre-Existing Condition Insurance Plan (PCIP) is another method that many people used since the ACA was enacted for their pre-existing conditions.  PCIP plans cover a broad range of benefits, including hospital visits, primary and specialty care, and costs for prescriptions.  PCIP plans have a $2,000 annual medical deductible, a $500 annual prescription deductible, and they pay 70% of the in-network medical expenses after the deductible has been satisfied.

All PCIP plans in all states, including Nevada, will terminate on December 31^st, 2013.  Members currently enrolled in PCIP are expected to make application for a new 2014 guaranteed issue individual health insurance plan.

The third option for continued health insurance coverage for many Nevadan’s that have been employed by employers with 2 to 19 employees has been through the State Continuation of Coverage Statute (689B.245), better known as Nevada Mini COBRA .

This Nevada Statute required group health insurance companies to provide 18 to 36 months of continued coverage for terminated employees on two conditions.

1.       An employee had been on the small employers plan for 12 months, and,

2.       The employee was terminated for any reason other than gross misconduct; the employee would be allowed to continue with the group health insurance benefit.

After January 1^st, applications for continuous group health insurance benefits under this Statute will end.

Everyone currently on Nevada Mini-COBRA will be able to continue with their benefit for the remainder of their 18 or 36 month coverage period, but no new enrollments for continued coverage will be accepted after December 31^st, 2013.

For everyone currently insured with any of these three kinds of plans, the new individual and family plans available in Nevada after January 1^st will be the new form that will provide coverage for pre-existing conditions.