Premiums for Kentucky’s High Risk Insurance Program Expected to Drop, But Private Rates Increasing

Premiums for people enrolled in Kentucky Access, the state's insurance program for high-risk individuals uninsurable in the private market, may decrease by 9% to 34% after they enroll in the program, the Owensboro Messenger-Inquirer reports. Testifying before the state House Banking and Insurance Committee, Insurance Commissioner Janie Miller said that the reduced premiums could save Kentucky Access enrollees between $100 and $200 per month. The program, which was created with $33 million from the state's share of the national tobacco settlement, started Jan. 1. Since then, 49 people have enrolled. At the meeting, legislators, citing the program's enrollment, urged insurance officials to step up advertising efforts. State Rep. Mike Denham (D) said, "I believe people aren't aware of it." But critics have suggested that the low enrollment figures may indicate that "Kentucky Access is not the answer for all Kentuckians" (Richardson, Lexington Herald-Leader/Owensboro Messenger-Inquirer, 2/8). While premiums for Kentucky Access are lower than costs for private insurance, they average about $497.90 per month, which some critics say is still too expensive for some people. Rich Seckel with Kentuckians for Health Care Reform said, "It doesn't look like low-income people would be able to take advantage of the plan."

Higher Private Rates
Although rates for Kentucky Access are dropping, Miller said that premiums for private insurance in the state will increase, depending on a person's health. Rates for the "healthiest" may drop by 5%-10%, but costs may rise as high as 20% for those who have filed claims. Miller said the higher premiums are part of a "national trend" and added that Kentucky consumers may have more health care choices, as another insurer is "expected to enter the [Kentucky] market soon." She added, "We don't have total stability in the marketplace, but we are certainly moving in the right direction" (Schreiner, AP/Cincinnati Enquirer, 2/8).