The Pre-existing Condition Insurance Plan (PCIP) is a form of health insurance coverage offered to uninsured Americans who have been unable to obtain coverage because of a pre-existing condition. It will provide coverage to as many as 350,000 people and fill the gap until the Affordable Care Act goes into effect in 2014. The plan has been funded by congress through the Department of Health and Human Services to monitor and distribute. States are either individually run or administered by HHS with 23 states and the District of Columbia. The plan is open through an Association or Government Employees Health Association (GEHA). The program has since ceased in order to make certain funding would be sufficient to carry the existing approximately 100,000 members it has taken on since PCIP inception.
To be eligible, patients must have a pre-existing condition, be uninsured for at least 6 months, and be a US citizen or a legal resident.
The Affordable Care Act provides federal funding to support Pre-Existing Condition Insurance Plans in every state and downloadable applications are available in the states where the US Department of Health and Human Services is running the PCIP. In those states, coverage will begin on August 1, 2010 for applicants who apply by July 15, 2010.
Pre-Existing Condition Insurance Plans are designed to provide affordable insurance to Americans with pre-existing conditions. The premiums are based on the standard cost of an individual health insurance policy in the health insurance pool's geographic area and out-of-pocket maximums are limited to $5,950 for individuals and $11,900 for families.
It is not accepting new patients until further notice.
Pre-existing condition insurance is also relevant for Travel Insurance customers. A preexisting condition is a medical concern that a travel insurance customer already has prior to purchasing a policy. This concern will only be considered preexisting if it has not been stable for a certain period of time. The length of this period varies, but most travel insurance providers put it between 60-180 days. A stable condition is one that hasn't gotten worse or required medicine or treatment etc.
If a customer has to file a medical claim, the travel insurance provider will be able to look at the customer's medical records in order to assess if it involves a preexisting condition. If a claim is the result of such a condition, the provider may deny it unless the policy contains the waiver that applies to it. This is why it's important to be completely up front with a travel insurance provider when purchasing a policy.