Health Care Mystery in Iowa

Most people have probably come across stories this morning detailing how health care costs are projected to keep rising, despite the passage of the reform package earlier this year.  But here's one story you may not have seen, from this morning's Des Moines Register:

New high-risk insurance pool draws only a few applicants

Few Iowans are showing interest in a new state health insurance program for people with medical conditions, such as cancer, diabetes or high blood pressure.

Such high-risk pools are among the first programs to take effect under the federal health reform law. When the Iowa pool opened early last month, there was some concern that it would be unable to meet demand. Federal experts estimated that 34,500 Iowans would qualify, but the federal government provided enough money to cover only about 975 of them.

However, the program has received just 32 applications so far.

Cecil Bykerk, executive director of the effort, said he was surprised by the lack of interest. "We thought it would take off a little bit faster," he said.

The article reports that the lack of interest can be explained, in part, by uncertainty and confusion. Instead of expanding Iowa's existing high risk pool, the federal health care reform law requires people to sign up for new high risk pools.

The DM Register also reports:

Twenty-two states, most of which have Republican governors, declined to set up new high-risk pools under the federal health-reform law pushed by President Barack Obama. Hall said their biggest concern about the idea seemed to be that states could wind up on the hook if the federal money failed to be sufficient for everyone who would sign up.

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