Although Vermont had originally decided to operate its own temporary high-risk pools, under the Patient Protection and Affordable Care Act (ACA), both of the state's proposals to the U.S. Department of Health and Human Services (HHS) were rejected. As a result, Vermont will allow the federal government to operate its high-risk pool, the Pre-Existing Condition Insurance Plan (PCIP).
The ACA called for states to decide whether they would operate their own high-risk insurance pool by July 1, 2010. Vermont intended to use the $8 million that HHS allocated to the state to operate its own pool. In doing so, the state planned either to expand its existing health insurance programs to meet federal guidelines or to work with Blue Cross and Blue Shield to establish a new program. However, HHS rejected the state’s proposals in part because they would not be effective soon enough to comply with ACA. Vermont has 47,000 people without health insurance coverage despite the state’s guaranteed issue, which means that no insurer may deny Vermont residents coverage but costs may be prohibitively high for some consumers.
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