The U.S. Department of Health and Human Services has announced the establishment of a new Pre-existing Condition Insurance Plan (PCIP) that will offer coverage to uninsured Americans who have been unable to obtain coverage due to a pre-existing condition. The PCIP is a transitional program designed to cover individuals with pre-existing conditions until 2014 when insurers will be prohibited from discriminating against them.

The California legislature quickly passed a bill to apply and be a part of the federal money available which amounts to about 800 million dollars.  The problem is the money is only slated for 3 years and will run out before new plans are available in 3 years.  This could present a major problem for California in the near future.

HHS Secretary Kathleen Sebelius says that the plan will offer people with pre-existing conditions who have been uninsured for at least six months the same kind of coverage that a healthy person would get.

The Affordable Care Act provides $5 billion in federal funding to support PCIPs in every state-including California. For more information on how the this plan will affect California Health Insurance at 877-840-0554.

Don Ariosto