CMS Issues Proposed Funding Levels for State High-Risk Pools - May 5, 2010

On April 22, the U.S. Department of Health and Human Services (HHS) issued a fact sheet regarding the high-risk pools to be created under the new health reform law, including a proposed state-by-state breakdown of funding from the total $5 billion appropriated by Congress. According to HHS, the allocations are based almost exactly on the formula used under the Children’s Health Insurance Program, calculating such factors as the nonelderly population, nonelderly insured, and geographic costs. California will receive the most funding, at $761 million, while Vermont and Wyoming get the least, at $8 million each. Earlier in April, HHS asked states to express their intention of implementing their own high-risk pools. While most states will participate, at least 18 states have decided to opt-out of running their own high-risk pools, leaving the task to HHS.