Pre-existing insurance plan rate OK'd at $381

The federal government has approved a flat $381 monthly premium for the Connecticut Pre-Existing Condition Insurance Plan, Gov. Dannel P. Malloy announced Tuesday.

The move expected to boost enrollment in the year-old program by slashing premium costs by as much as 57 percent for older beneficiaries, according to a news release from Malloy's office.

Malloy said the new, uniform "community rate" premium of $381 will be significantly less expensive for most enrollees aged 50 and older. He said that for people ages 60 to 64, premiums averaged about $776, a cost that put the program out of reach for many people with pre-existing conditions. The costs will drop Sept. 1 for the 75 people now enrolled, and the lower rate should help attract new applications, he said.

The insurance plan, launched last year, based premium rates on age, with rates beginning at $243 per month for younger people. The state Department of Social Services, administering agency for the federally funded program, appealed to federal authorities in June to collapse the premium schedule into one rate of $381. The state's proposal was approved Friday. The new rate will reduce premiums for about two-thirds of the current members. Enrollees younger than 45, however, will see premium increases of $23 to $96.

"On balance, the new $381 premium rate across the board will help attract the main target audience of the pre-existing condition insurance plan," said Social Services Commissioner Roderick L. Bremby.

Connecticut has another program that serves uninsured adults with pre-existing medical conditions - the Charter Oak Health Plan. New state legislation requires that individuals who are eligible for the Pre-Existing Condition Insurance Plan select that option, rather than Charter Oak. The lower $381 premium supports this requirement by making the Pre-Existing Condition Insurance Plan more accessible.

At the same time, the monthly cost for new enrollees in Charter Oak is rising to $446, as a result of medical claim costs and lowered state subsidies, according to the release from Malloy's office.

For information: visit www.ct.gov/dss and enter "pre-existing" as the search term.