The Obama administration is on the verge of awarding hundreds of millions of dollars in contracts to approximately 20 states to run new high-risk health insurance pools. In another 20 states that have opted not to run the pools themselves, the federal government will run the pools via a private nonprofit body. Consumers will be able to apply to the pools beginning July 1. Some states are ready to go, while others are still working on their proposals.

After struggling for months to fend off Republican attacks on the new health care law, White House officials hope the high-risk insurance pool will produce tangible benefits for people who are uninsured — and for Democrats running in midterm elections this fall. The law has become an issue in many races. Congress provided $5 billion for the program, which is expected to help 200,000 to 400,000 people, or fewer than 10 percent of those denied health insurance due to pre-existing conditions. Applications will be available to the public in many states on Thursday, and coverage could start as early as August.

Insurance Pools Readied in Some States (New York Times 6/25/10)

June 30, 2010