Health Insurance Articles
Health Insurance Program Rejected By Nebraska Governor
2010-05-01
Dave Heineman, the Governor of Nebraska, has submitted a letter to the United States Health and Human Services director explaining why his state refuses to participate with the formation of a high-risk health insurance program offered by the health care bill. Heineman concluded that the federal plan presented too much financial risk for Nebraska. He also pointed out that Nebraska already has legislation to provide coverage for high-risk individuals, which makes the federal plan redundant in his state.
Specifically Targets High Risk Individuals
The portion of the health care bill that Heineman is disputing provides health care coverage for individuals who may have trouble qualifying for a health insurance program because of pre-existing conditions. Regardless of the governor's complaints, Nebraska citizens are still eligible to receive the federal high risk coverage. By rejecting the plan, Heineman ensures that no state funding will be applied to the participants in the plan. The high-risk legislation was intended to provide a quick solution for those who are uninsured due to chronic illnesses. It covers medical costs until the bulk of the health plan is enacted in 2014, at which time all insurance companies would be required to insure high risk individuals.
Existing State Legislation
The fact that Nebraska already had a state level high-risk insurance coverage makes the governor's refusal to comply with the federal plan less worrisome. Nebraska's residents will not suffer from any lack of insurance coverage while the governor and the US Health and Human Services agency discuss the viability of the new federal plan. Heineman is concerned that the new legislation will simply add another level of bureaucracy to the insurance process in his state, as well as raising taxes for his citizens.
Concerns Regarding Federal Funding
One of Heineman's biggest concerns is that the federal funding for the high risk insurance pool will run out before the 2014 regulations are in place. If Nebraska were to join in the federal high risk health insurance program and then the program ran out of funding, the state would be left with whatever financial burden the pool had acquired and could not meet. The potential expenditure makes Heineman worried that joining the federal program could cause hardship for his state in the near future.
The Impact of the Refusal to Join the Federal Plan
In actuality, there will not be a large impact on health insurance care in Nebraska from the governor's refusal to participate in the federal high risk plan. The existing state plan will proceed as usual, and Nebraskans will also be eligible to join the federal plan if they qualify. The governor merely saved his state from the extra expense of creating a new department to handle the government program in Nebraska.
