updated: 5/3/2010 8:13:52 AM

Daniels Seeks Federal High-Risk Insurance Pool

InsideINdianaBusiness.com Report

Governor Mitch Daniels says the state will not expand its high-risk medical insurance pool. Instead, it will allow the federal government to establish a coverage program for Indiana. Daniels says the total cost of expanding the state program is not known. The federal Patient Protection and Affordable Care Act gives states the option to expand high-risk insurance pools.

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Source: Inside INdiana Business

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Press Release

INDIANAPOLIS -- Governor Mitch Daniels said today in a letter to the U.S. Department of Health and Human Services (HHS) that Indiana will not expand the state’s high-risk insurance pool program under the option presented by the new Patient Protection and Affordable Care Act. Indiana instead will allow HHS to establish a coverage program for Indiana.

Daniels said the state declined the option because the total cost of the program and Indiana’s share of the cost are unknown, mandates or requirements for running the new program are unknown, and the amount of federal funding allocated for the project will be exhausted before the program concludes.

"We carefully analyzed the options presented to us, but in the end this was not a close call for Indiana: the risks Indiana is being asked to take are well beyond any range of acceptability. Given the options the federal government has presented, we have elected to allow the U.S. Department of Health and Human Services to establish a coverage program for Indiana instead of expanding our existing high-risk program and exposing Indiana taxpayers to an open-ended and potentially enormous new burden," Daniels said in his letter to HHS Secretary Kathleen Sebelius.

States were asked to respond to the high-risk insurance pool expansion option by April 30. A copy of the governor's letter may be found at this link: http://www.in.gov/gov/files/Press/043010_DHHS_Letter.pdf

Source: Indiana Governor

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