Government Cuts Rates For Hard-to-Insure Patients

WASHINGTON (AP) - The government is cutting premiums by up to 40 percent in 17 states and implementing other changes to make it easier for people with pre-existing medical conditions to get health insurance.

See also: The new health care law and pre-existing conditions.

The move Tuesday comes as enrollment in the Pre-Existing Condition Insurance Plan continues to lag far behind expectations, often because people can't afford the premiums or find it too hard to meet enrollment requirements.

The insurance program, part of President Barack Obama's signature health care law, began last summer. It offers health insurance to people with medical problems at prices the average healthy person would pay, although that's not necessarily cheap.

So far, about 18,000 people have signed up - well short of government projections that some 375,000 people would gain coverage in 2010.

In her announcement, Secretary of Health and Human Services Kathleen Sebelius said diseases like cancer, diabetes and asthma have pushed up health insurance costs for many, bankrupting families and leaving people's health at risk. She said those people who have been locked out of the market still have a place where they can get immediate coverage.

"This program changes lives and in many cases saves lives," said Sebelius. "We need to continue to find those who are eligible and get them covered."

Premiums will drop, Sebelius said, in 17 states and the District of Columbia where the federal government runs the plans directly. Most remaining states have opted to take federal money and design their own programs.

Cuts of about 40 percent should be seen in Alabama, Arizona, Delaware, Florida, Kentucky, Minnesota, Nevada and Virginia, according to HHS. Smaller cuts are expected in Georgia, Indiana, Louisiana, Mississippi, Nebraska, South Carolina, Tennessee, Texas, West Virginia and the District of Columbia.

In Virginia, Sebelius said, consumers will save almost $1,200 a year from the premium reductions. The premium cuts are paid for by the $5 billion allocated to the program, HHS officials said.

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