The Kansas Department of Insurance is working with the federal government to create a temporary high-risk insurance pool, in accordance with regulations set forth by the new federal health-care law. High-risk insurance pools are designed to provide coverage for residents with pre-existing conditions who are unable to find coverage elsewhere. The temporary high-risk pool will operate until 2014, when the law prohibits insurance companies from denying coverage to those with preexisting conditions.

Kansas already has a high-risk insurance pool, but it will run separately from the temporary high-risk pool. The law requires that the temporary pool could only be utilized by residents who have not been insured for at least six months.

Linda Sheppard, director of the accident and health division of the Kansas Insurance Department, said that the U.S. Department of Health and Human Services was  reviewing a revised version of Kansas’ proposal to create the temporary high-risk insurance pool, and that it was unclear at this time whether the state or the federal government will have oversight of the pool. The decision will be left up to the Board of Directors at the Kansas Health Insurance Association, which is in charge with operating the state’s existing pool.

“There will be a pool,” Sheppard told Kansas Liberty. “The question is whether or not it will be operated here in the state or whether or not HHS will operate it long-distance.”

Sheppard said the regulations to be accepted onto the temporary high-risk pool are much less stringent than the regulations required to be accepted onto the state’s existing pool.

Sheppard said the state consistently has had between 1,700 and 1,800 Kansas residents on the existing high-risk insurance pool and that the state averages paying out $2 million a month for these claims. The federal health-care law allows for $2 billion in taxpayer dollars to go to the states for the purpose of operating and maintaining the temporary high-risk pools.

Kansas’ share of that $2 billion is $36 million, which means that Kansas is slated to receive $36 million in federal funds to pay for the temporary pool between the time it is set up and when it expires in 2014. Sheppard said she would expect the temporary pool to start accepting claims by August.

It is unclear, however, what would happen if the $36 million were not enough to cover the costs.

“We are not sure what would happen if we run out,” Sheppard said.

Rep. Brenda Landwehr, R-Wichita, and chair of the House Health and Human Services Committee, said she was concerned the federal government would not be able to fund the temporary pool fully, and that some of the cost would fall back on the state.

“A lot of people are getting very tired of this excessive spending, and are pointing out that it is putting our children and grandchildren into debt,” Landwehr told Kansas Liberty. “There are definitely questions of whether or not they will be able to come through with these promised funds.”

Landwehr also questioned why it was necessary to spend taxpayer dollars to create temporary high-risk pools in states such as Kansas that already have an existing pool.

“One thing is for sure, we don’t have any extra money,” Landwehr said. “We are already upside down starting the fiscal year 2011 budget.”

Rep. Virgil Peck, R-Tyro, and vice-chair of the House Insurance Committee, said he disagreed with Kansas complying with any aspect of Obamacare.

“I think there is a chance next session that the Legislature will be able to pass the constitutional amendment that will allow Kansas residents to protect themselves from Obamacare,” Peck told Kansas Liberty. “If we start down the road of complying, it makes it more difficult to back up.”

During the 2010 session, conservatives in both chambers worked to pass the Health Care Freedom Amendment, which was aimed at letting Kansas residents decide on whether they want to comply with the federal health-care law, but the efforts failed.

Peck also said he was somewhat uneasy about Kansas’ Insurance Commissioner Sandy Praeger having influence over implementing provisions within the federal health-care law.

“Our current insurance commissioner has indicated that she thinks Obamacare is not all that bad, so that gives me a level of discomfort,” Peck said.

Peck said he hoped the American public would continue to voice their discontent with the law and work to elect legislators who will vote to repeal it.

“I believe Obamacare is detrimental to Kansas citizens and Kansas taxpayers,” Peck said. “The only people I think it benefits are the ‘sit on your butt at home and do nothing’ citizens.”

Resources:

Click here to read the letter from Praeger to Sebelius

Kansas Insurance Department

Click here to read about eligibility requirements for existing high-risk pool

Kansas Health Insurance Association

Kansas Health Insurance Association statutes start here

Kansas Health Insurance Association Board members:

Chairman Bill Tracy, United Healthcare of the Midwest, Inc.
Dave Hornick, agent
Dr. Dick Warner, public
Ron Schucknecht, BCBS of Kansas
Lisa Kiely, public
Carlene Marra, Humana
Mary Jo Waugh, public
Steve Robino, Coventry Health Care of Kansas, Inc.
Bonnie Lowe, public
Jeff Berry, Blue Cross Blue Shield of Kansas City
Bruce Witt, Preferred Plus of Kansas

The Week in Review