PCIP California (Pre-Existing Condition Insurance Plan) Rates Just Cut!

The federal government, which pays most of the cost for this program, just gave California permission to lower the rates on the insurance plan by up to 24%. The Pre-Existing Condition Insurance Plan California (PCIP California) was created as part of the Health Care Reform Bill last spring, and serves Californian’s that have been denied regular health insurance because of health conditions. This little known plan serves as a safety-net insurance plan for the uninsured.

The rate reduction will take effect on Oct 1st, and the hope is that this will encourage more uninsured people to enroll in the plan. The 3500 current plan participants will get 8% to 24% rate cuts depending upon their age and where they live.

My most recent PCIP California enrollee, Darren, a 24 year old in San Diego, will see his premiums drop from $181 to $149 each month, a savings of 17.6%, which is about the average savings across all ages and areas in California. Darren’s $149 premiums gets him a PPO plan with a $1500 deductible, a $25 office visit copay, and a worst case max out of pocket of $2500.

The California PCIP is a great plan for uninsured people because it provides very high benefit levels at a price point below what the major insurance companies like Aetna and Anthem Blue Cross would charge for a plan with the same benefit levels.

The plan is especially attractive for pregnant women that don’t have health insurance. When compared to all the other individual maternity health insurance plans, the PCIP California plan is the 3rd best option. Easily beating out the best plans from Anthem Blue Cross and Blue Shield.

See the California Pre-Existing Condition Insurance Plan page for more details about the plan, pricing, and how to sign up.