Health care reform
The Pre-existing Condition Insurance Plan (PCIP) will be continued until April 30, 2014, the Obama administration announced on Friday, March 14, 2014.1
The federally run PCIP had been scheduled to terminate January 1. Starting on that date, insurers were no longer able to turn away patients with health issues, making the plan unnecessary. To ensure PCIP enrollees’ coverage would be effective January 1, they had until December 23 to enroll through the new Health Insurance Marketplaces. However, as glitches with the marketplaces mounted, the administration became unsure that the system could handle a surge of December applications.2 As a result, PCIP enrollees were offered transitional coverage that would allow them more time to review marketplace plan options and enroll in coverage. The administration at first extended the enrollment deadline to January 31, and then further extended it to March 31 in an announcement made January 14. In March, the deadline was extended for a third time, to April 30, 2014.
Learn more about PCIP here: http://www.unum.com/HealthcareReform/Law/201209_02
This extension will give people who have PCIP coverage more time to find the coverage that’s best for them on the Health Insurance Marketplaces. It will help ensure that many of the sickest Americans do not suffer a gap in health insurance coverage.
Although this extension has no direct impact on employers, they should be aware that PCIP is not a sustainable long-term solution for their most vulnerable employees.