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Effective March 2, 2013 the Pre-Existing Condition Insurance Plan (PCIP) has announced they will no longer accept new applicants.  Existing individuals already enrolled will remain covered through 2013.

Since the launch of the Federal Sponsored Pre-Existing Condition Insurance plan in 2010, many of the sick and uninsured enrolled into this program in a desperate attempt to obtain coverage.  Earlier this month the plan announced that they would cease accepting new applicants in order to ensure continued coverage through 2013 for the existing people currently covered.  This program was launched with minimum funding from Congress to be used as a temporary and affordable solution to those uninsured that could not qualify for traditional coverage because of a pre-existing condition.  Due to the large number of claims, rising costs of care, and no additional financial support from Congress, there was just no other alternative. 

The PCIP was intended to remain in effect until January 2014 when our new health care system called Covered California will become available.  Under the new health care system, pre-existing conditions will no longer prevent those from qualifying for coverage.  It will also prevent insurance companies from charging a higher rate because of a pre-existing condition. 

This recent decision has resulted in those seeking coverage to resort to the Major Risk Medical Insurance Program (MRMIP), which is California’s high risk pool.  Most are not happy with this alternative as the benefits are not very comprehensive and it comes with a high price tag that many can’t and won’t be able to afford.  This will leave many uninsured.  Individuals who are currently enrolled in PCIP will receive a formal announcement in the near future that will inform them of the discontinuation of the plan and provide them with information to assist them with other options for January 2014.

If you would like us to inform you of your options for 2014, please sign up for our monthly Health Reform Highlights email by clicking below.  We will provide you with the latest information that will assist you with transitioning into our new health care system.

Click here to sign up for our monthly "Health Reform Highlights" email.

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