Many individuals are embracing the summer season with fear. A Washington state health insurance program for low-income adults is planning to close, ending insurance coverage for about 65,000 individuals.
The ill economy is forcing Washington state as well as many other states to shave their health insurance programs for low-income people, even as jobless motives are demanding help. Five of the six states that
utilize state funds to help adults who are not covered by Medicaid are considering cuts. These program cuts are barring new enrollment or raising fees.
The 250,000 individuals taking advantage of the state programs are adults who do not qualify for the federal-state Medicaid program. This is either because they have no children or have earnings exceeding the limits which state imposes on Medicaid eligibility. The number of adults represent a small fraction of those who get government health insurance coverage, even though the state programs are often their only option for health coverage.
Individuals are taking action to counter the state's insurance cuts. For example, in California, many are consulting insurance brokers for Medigap insurance quotes to fill the coverage gaps of Medicare. This type of plan is also known as supplemental insurance.
The U.S. Senate passed a health bill that does include funding for the state programs. That bill, along with a bill the House of Representatives passed, would also expand Medicaid and provide federal subsidies to help low-income and middle-income Americans acquire affordable insurance. The bill's fate is uncertain as Democrats regroup after a recent loss in a key Senate seat.
Even if the bill is approved, the relief for states, as well as the uninsured population, is years away. For this reason, experts are advising the uninsured to be prepared and obtain personal health insurance quotes from several insurance providers.
Potential Stimulus Protection
Stimulus money from the Federal government has sheltered many state Medicaid programs. However that funding is set to run out in December and could result in Medicaid eligibility cuts, on top of potential cuts in states' adult health programs.
A Washington senator added a provision to the Senate health bill to permit a state to find federal funds for Basic Health until 2014. The senators spokesman says the provision would apply to other states with basic health insurance plans.
A second Cantwell amendment would allow states to form basic health insurance plans after 2014. These plans would be available to individuals who earn over the limit for Medicaid but less than twice the poverty level.
Many insurance experts say such state insurance plans would not be needed if a healthcare overhaul passes. This is because most individuals who qualify would suit the new Medicaid enrollment guidelines or qualify for federal subsidies.
"There will be no reason for states to pay for this themselves," says an expert at the Urban Institute.
However, an overhaul is still up in the air. Until then, policy experts recommend shopping for individual health insurance with the best benefits.
Whatever the outcome of the debate at the capital, policy experts cross their fingers that lawmakers can seek the money to save Basic Health.
For more information on how to protect yourself with affordable, health insurance coverage, consult a policy expert to better understand your insurance options.
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