Hundreds of Applicants Apply for New Illinois Risk Pool in First Few Hours

Written by Leigh Page | August 24, 2010

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Illinois authorities said 370 applications were submitted for the state's Pre-Existing Condition Insurance Plan in just the first few hours of submissions, according to a report by the Chicago Sun-Times.

State officials are hoping there will be enough funding to cover applicants, who are chosen a first-come, first-served basis. Under the healthcare reform law, Illinois will get $196 million in federal funding to operate the program until the end of 2013, which would cover claims for an estimated 4,000 to 6,000 people. But according to a 2008 U.S. Government Accountability Office report, as many as 218,000 Illinoisans might be eligible, according to Bloomberg BusinessWeek.

Later this month, California's Managed Risk Medical Insurance Board will begin accepting applications for the fund. California will receive $761 million in federal funds to operate the plan.

Funding for the new plans come from premiums as well as $5 billion in federal payments to all states before a ban on rejecting applicants with re-existing conditions is implemented in 2014, making the risk pools no longer necessary.

Citing funding issues, 19 states have refused to set up a risk pool, but in these cases the federal government will directly operate the risk pools using the funds provided.

Read more on state risk pools for people with pre-existing conditions:

- 19 States Refuse to Create High-Risk Pools Despite $5B in Federal Funding

- Hospitals and Insurers Oppose Reduced Penalties for Uninsured

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