Iowa participates in high-risk insurance pool

DES MOINES – Gov. Chet Culver announced Friday that Iowa will accept $35 million in federal funds over the next four years to operate its own temporary health insurance plan for high-risk individuals.

This step will help cover uninsured Iowans as the country transitions toward implementation of federal health insurance reform. 

“Every Iowan should have access to affordable health care,” Culver said. “This action is an important first step in reaching this goal.  These funds will allow Iowans who have been among the uninsured for extended time periods to get coverage, in spite of health problems and without waiting periods for existing conditions.”

Iowa will establish a new pool alongside its current high-risk pool structure that will comply with the federal requirements. Under the terms of the federal funding formula, Iowa will be eligible to receive a grant of approximately $35 million in reimbursements to subsidize the cost of the fund until 2014. The state's next step will be to submit a plan for federal approval.

Iowa Insurance Commissioner Susan Voss notified the federal government Friday afternoon of Iowa's intent to administer a high-risk pool in a letter to U.S. Department of Health and Human Services Secretary Kathleen Sebelius. In making the decision, Iowa joins other states in establishing a state high-risk pool under the new federal health care reform legislation.