Lt. Governor Brown Announces Major Step Forward to Provide Health Insurance for Maryland Residents with Preexisting Conditions
Maryland in “vanguard of states” establishing high-risk pools, signs agreement with U.S. Department of Health and Human Services
ANNAPOLIS, Md. (July 1, 2010) – This morning in Annapolis, Lt. Governor Anthony G. Brown announced Maryland is ready to offer health insurance coverage to uninsured Maryland residents with a preexisting condition through a temporary federal high-risk pool program. The announcement, made during the third meeting of the Health Care Reform Coordinating Council, comes as a result of an agreement between the Maryland Health Insurance Plan and the U.S. Department of Health and Human Services.
“For too long, too many of our most vulnerable residents have been denied health insurance coverage because of preexisting conditions that are beyond their control. With President Obama’s swift leadership and Governor O’Malley’s commitment to improving health care in Maryland, we can now expand affordable health insurance to our uninsured neighbors – many of whom will have coverage for the first time,” said Lt. Governor Brown. “We are proud to be considered a leader in the effort to provide insurance for residents who have preexisting conditions and one of the first states in the nation to begin the implementation of federal health reform. Because of the progress we have made through initiatives we put in place in the months and years before federal health reform passed, we are prepared to develop a national model that expands access to coverage and improves the quality of care for all our neighbors.”
On March 23, 2010, President Barack Obama signed into law the Patient Protection and Affordable Care Act (PPACA), as amended by the Health Care and Education Recovery Act of 2010. PPACA requires the Secretary of Health and Human Services to establish a temporary high-risk pool program to provide health insurance coverage to uninsured individuals with a preexisting condition. The Secretary is authorized to carry out the program directly or through contracts with states or other eligible entities.
“Our commitment and investments in expanding access to health care means Maryland is better prepared than most states to produce a high-risk pool that benefits even more families as soon as possible,” said Secretary Colmers, Secretary of the Department of Health and Mental Hygiene (DHMH). “This is one step in efficiently and effectively getting health care to those who need it. Maryland will remain a model of health care reform as long as we keep the welfare of families our top priority.”
Following the enactment of PPACA, the Maryland General Assembly passed House Bill 1564, which authorizes the Board of Directors for the Maryland Health Insurance Plan (MHIP) to administer the federal high-risk pool program for Maryland. Governor O’Malley signed the emergency bill into law on April 13, 2010 and sent a letter to the Secretary of Health and Human Services designating MHIP as the entity that would implement the federal high-risk pool program for Maryland.
MHIP currently operates a state high-risk pool program and has the experience and expertise necessary to meet federal standards in a timely and efficient manner. To be eligible for coverage under the federal high-risk pool program, an individual must:
- Be a citizen or national of the United States or lawfully present in the United States;
- Be a resident of Maryland;
- Not have had health insurance for a continuous six-month period of time prior to the date of application to the federal high-risk pool program;
- Not be eligible for certain other health insurance coverage; and
- Provide certain evidence of a preexisting condition.
MHIP expects to start accepting applications in early August and enrolling individuals in the program with an effective date of September 1, 2010. The temporary federal high-risk pool program will remain in effect until the end of 2013, when it will be replaced by an insurance exchange established under PPACA. Maryland expects to receive approximately $85 million in federal funding for the federal high-risk pool program during the life of the program.
The Health Care Reform Coordinating Council, created by Governor O’Malley to lead the State’s efforts to implement federal reform, is co-chaired by Lt. Governor Brown and Department of Health and Mental Hygiene Secretary John M. Colmers. The Council will hold one more meeting on July 19th before submitting an interim report to Governor O’Malley at the end of the month that provides a comprehensive evaluation of the federal legislation and identifies critical decision points that must be considered by the State.
Lt. Governor Brown leads the O’Malley-Brown administration’s efforts on a range of issues, including health care. Brown led this year’s effort to pass the Medicaid False Claims Act and establish Patient Centered Medical Homes. He chairs the Maryland Health Quality and Cost Council and has championed efforts to expand access to mental and behavioral health services for Maryland’s veterans.
For more information on the federal high-risk pool program, read The New York Times article, “Insurance Pools Readied in Some States.”
