Government

High-risk pool funding gets Senate panel's nod

NEWS IN BRIEF — Posted Oct. 11, 2004

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Legislation that would extend the availability of funding to encourage states to create high-risk health insurance pools was recently approved by the U.S. Senate Committee on Health, Education, Labor and Pensions. The pools serve people with chronic or serious illnesses who often have difficulty obtaining coverage through the private marketplace.

The subsidized pools are thought to relieve spending pressures on the rest of the market, allowing private insurers to offer less-costly plans to individuals with few health problems. The legislation, which still would have to be passed by the House and Senate to become law, would free up $15 million in seed grant money that is set to expire and appropriate another $75 million to offset the administrative costs of existing state pools.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/10/11/gvbf1011.htm.

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