South Dakota to Administer Federal High-Risk Insurance Pool

Press Release

Gov. Mike Rounds announced today that state government reached an agreement Wednesday with the U.S. Department of Health and Human Services to administer a federal high-risk pool covering South Dakotans who are uninsurable due to pre-existing health conditions and who have been without health-care coverage.

State management of the Federal High Risk Pool involves the use of existing resources in the South Dakota Bureau of Personnel to staff the program.

Gov. Rounds said qualified individuals in South Dakota can begin to apply for the Federal High Risk Pool on July 1. The cost of coverage is based upon the average cost of similar insurance available in the market today. However, the program is only for people who have not had insurance for six months and have pre-existing medical conditions.

"Having the state administer the Federal High Risk Pool is a plus for South Dakota," the Governor said. "The pool will be run by and for South Dakotans in a way that makes the most sense for the citizens of our state."

Gov. Rounds said the Federal High Risk Pool is expected to provide coverage for about 300 South Dakotans who have not had health insurance and cannot obtain coverage.

The Patient Protection and Affordable Care Act requires creation of the high-risk pool, which will be funded by an $11 million federal allotment to South Dakota.

To qualify for the Federal High Risk Pool, a person must have been without coverage in the past six months and must have a pre-existing medical condition.

The coverage is only open to citizens or legal residents of the United States who live in South Dakota.

The Federal High Risk Pool will operate alongside but separately from the current South Dakota Risk Pool. While the new federal pool is for people without recent health coverage because of pre-existing health problems, the South Dakota Risk Pool is for those who had coverage and recently lost it.

For more information about eligibility and other details of the federal program, call 605-773-3148, visit the Federal High Risk Pool website at http://fedhighriskpool.sd.gov, or visit the South Dakota homepage and click on the Federal High Risk Pool icon.

Individuals may also visit licensed insurance agents for assistance in applying to the Federal High Risk Pool.

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