Sebelius Continues Work to Implement Health Reform, Announces First Steps to Establish Temporary High Risk Pool Program
"U.S. Department of Health and Human Services (HHS) Secretary Kathleen Sebelius today issued a letter to governors and independent insurance commissioners asking each state to express their interest in participating in the temporary high risk pool program established by the new health insurance reform law. The temporary high risk pool program was created to help provide coverage to people who are uninsured because of pre-existing conditions. States may choose whether and how they participate in the program. HHS is committed to working closely with states as the program is implemented.

“The establishment of a temporary new high risk pool program is one of our first tasks in implementing the new health reform law and will help provide affordable insurance for Americans who have been locked out of the insurance market for too long,” said Sebelius. “This letter marks the first step in that process and demonstrates one of our core principles of implementation -- building on effective programs that already exist. In the coming days, we will work closely with states to answer their questions.”

In her letter, Sebelius writes, “We are interested in building upon existing state programs in this important initiative to provide expanded access to health coverage for individuals who cannot otherwise obtain health insurance. To that end, I am writing you today to request an expression of your state’s interest in participating in this temporary high risk pool program, consistent with one of the implementation options described below.”

The new health insurance reform law provides $5 billion in federal funds to support this new program. States have a number of options for how they may participate. Options include:

Operate a new high risk pool alongside a current state high risk pool;
Establish a new high risk pool (in a state that does not currently have a high risk pool);
Build upon other existing coverage programs designed to cover high risk individuals;
Contract with a current HIPAA carrier of last resort or other carrier, to provide subsidized coverage for the eligible population; or
Do nothing, in which case HHS would carry out a coverage program in the state."

Lower Premiums, Stronger Businesses: How Health Insurance Reform Will Bring Down Costs for Small Businesses
"Across the country, America’s businesses are struggling as the cost of health care continues to skyrocket. Premiums for employer-based health insurance have more than doubled since 2000, a growth rate three times that of wages.1 By 2025, one in every four dollars in our nation’s economy will be spent on health care2 – money that could have been invested in our nation’s businesses. Rising health care costs cut into employee wages and impede hiring and business growth.

Small businesses, the backbone of job creation in our economy, are disproportionately burdened by the financial strains caused by rising health care costs.3 On average, small businesses pay up to 18 percent more than large firms for the same health insurance policy. 4 This difference is due in part to high broker fees (which can be up to 10 percent of premiums),5 and health plan administrative costs that are three to four times those in the large group market.6 These higher costs discourage small businesses from covering their employees. In a recent national survey, nearly three-quarters of small businesses that did not offer benefits cited high premiums as the reason..."