LANSING – The state would have $141 million in federal funds to subsidize coverage under pools for those with pre-existing conditions through a supplemental approved on a party-line vote Wednesday by the House Appropriations Committee.
The funding, part of $5 billion set aside by the federal government for the pools, provides the subsidies until the full federal program becomes effective in 2014.
Office of Financial and Insurance Regulation Commissioner Ken Ross said he needed the authority to spend the funds now, as the agency is currently reviewing bids from PHP and Priority Health. One of the two HMOs could be awarded a contract for each county in the state to provide the pool.
Republicans on the panel, all of whom abstained or objected to reporting HB 6085 , were primarily concerned that the state would be on the hook if the federal subsidy was exhausted.
Ross said the program was designed to prevent any costs to the state. Among other options, the program could end or the premiums increased to cover the costs.
And he said enrollments to the program would be limited to ensure the funds last the full three-and-a-half years.
Republicans also complained that they were only given five minutes at the beginning of the committee meeting to review the proposal before being asked to discuss it, but Rep. George Cushingberry Jr. (D-Detroit), chair of the committee, said at least the vice chairs from both parties had been provided the proposal last month via a House Fiscal Agency memo.
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