Enrollment in Kentucky’s High-Risk Insurance Pool Fails to Meet Expectations; Governor Cuts Program Funding by $10M

Enrollment in Kentucky's insurance pool for residents who are uninsurable in the private market because of a pre-existing condition is lower than officials expected, state Insurance Commissioner Janie Miller said this week, the AP/Owensboro Messenger-Inquirer reports. Since the insurance pool began accepting members last January, state officials expected to enroll an average of 100 people per month, for a total enrollment of between 3,000 and 5,000 members. However, through July, 634 people have applied for coverage and 511 have been accepted into the program. Because of the low enrollment, the program's costs are "somewhat lower than expected," the AP/Messenger-Inquirer reports. Even if the program reached full enrollment, it would have a surplus of $41.4 million at the end of this fiscal year. To increase enrollment, the state is running radio, magazine and newspaper advertisements and has placed ads on pharmacy packages in two counties.

Funding Cut
Although the low enrollment is a concern, members of the General Assembly's interim Banking and Insurance Committee said the "bigger danger" is that Gov. Paul Patton (D) has cut state funding for the program by $10.1 million to help alleviate a $326 million statewide budget shortfall. The cuts place the program's future in question, and if the program ends, private insurers may leave the state altogether or not return, state Reps. Ron Crimm (R) and Jim Gooch (D) said. The AP/Messenger-Inquirer reports that the high-risk pool was created partly to "entice" insurers to return to Kentucky because many had left the state after the Legislature implemented regulations requiring insurance companies to offer coverage to everyone, at restricted rates, "regardless of their medical condition." Gooch said, "I think [the funding cut] definitely puts in question the integrity of this program." However, Miller said the $10.1 million was never intended to "provide a cushion for ... future costs." She added, "It's too early to say basically this is the undoing of this program." She added, however, that the program would need additional funding as costs increase (Chellgren, AP/Owensboro Messenger-Inquirer, 8/29). For further information on state health policy in Kentucky, visit State Health Facts Online.