Health Industry Washington Watch

HHS has announced that it is suspending acceptance of new enrollment applications for the Pre-Existing Condition Insurance Plan (PCIP), a temporary high-risk health insurance program to for uninsured individuals who have been denied health insurance because of a pre-existing condition. While the PCIP was intended to serve as a “bridge” until Affordable Care Act Exchanges are operational in 2014, HHS suspended acceptance of new enrollment applications in the federally-run PCIP beginning February 16, 2013, and states were required to suspend acceptance of new enrollment applications after March 2, 2013 due to funding limitations. In an annual report on the PCIP, HHS noted that the program has “seen fewer but much more expensive enrollees,” than originally expected, “underscoring the challenges associated with insuring people with pre-existing conditions through high-risk pools.”