Frequently Asked Questions

[This is only a summary of information. This summary is NOT a legal document. Refer to the Health Pool's Contract (Policy) and application for complete information.]

What is the Texas Health Insurance Risk Pool?

The Texas Health Insurance Risk Pool is an individual health insurance program created by the Texas Legislature to provide health insurance to Texas residents who either (i) cannot obtain adequate health insurance coverage as a result of their medical conditions, or (ii) are considered "Federally Eligible Individuals," as defined by the Health Insurance Portability and Accountability Act of 1996, commonly referred to as HIPAA.
When was the Health Pool started?

The Health Pool was originally created by the Legislature in 1989 in a bill sponsored by Representative John Gavin. The Legislature, however, did not provide funding for the operation of the Health Pool. In 1997, the 75th Legislature amended the 1989 legislation in a bill sponsored by Senator David Sibley and Representative Kip Averitt, which, among other changes, provided a funding mechanism. It also included $500,000 of state appropriated funds to cover the start up expenses of the Health Pool.
Who manages the Health Pool?

The Health Pool is managed by a nine member Board of Directors, appointed by the Commissioner of Insurance. The Executive Director's office oversees the day-to-day operation of the Pool.
Who can be a member of the Board?

The statute requires that certain interests be represented on the Board of Directors. These are: health insurance companies and persons who are eligible or who are parents of someone eligible for the Health Pool coverage. Additionally, Board members may be physicians, hospital administrators, advanced nurse practitioners or members of the general public, not affiliated with the insurance and health care industries.
Who are the current members of the Board?

Gary C. Cole, Chair - Public Representative
Rick Ott, CLU, Vice-Chair- Industry Representative
D. Greg Barbutti, Secretary/Treasurer - Insured Representative
Ed Baxter, Public Representative
Robert Emmick, M.D. - Professional Representative
Pati McCandless - Industry Representative
Vicky Paparelli, APRN, Professional Representative
William C. Rainey, M.D.- Insured Representative
Marinan Williams, Industry Representative

When did the Health Pool begin operations?

The first Health Pool policies were effective February 1, 1998.

What type of health insurance is provided by the Health Pool?

The policy issued by the Health Pool provides major medical expense coverage including coverage for prescription drugs. Benefits are provided up to a $1,500,000 lifetime maximum benefit. The coverage is subject to a calendar year deductible and coinsurance payments by the policyholder. For a more complete explanation, see the Outline of Coverage.
How are the operations of the Health Pool financed?

The Health Pool charges premiums for the policies that it issues. When claims and expenses for the Health Pool's operation exceed collected premium, the Health Pool collects additional funds from health insurance companies through assessments.
Who sets the premiums charged?

The Board of Directors recommends the premium rates to be charged and the Insurance Commissioner approves the rates.
What is a standard premium risk rate?

The standard risk rate is the average rate charged by health insurance carriers in Texas for similar coverage. The Board of Directors engages an independent actuarial firm to set a standard rate for the commercial market. The Board uses this standard rate when setting the premium rates for the Health Pool policy.
What premium is charged for the Health Pool policy?

Effective January 2004, the Pool's premium multiplier above the standard risk rate was raised to the 200%, the level required by state law. Rates will continue to be reviewed twice a year and adjusted, when necessary, to maintain this statutory level above the standard risk rate. For a more complete description of premiums, see the Rate Information page.
Who is eligible for the Health Pool Coverage?

See Health Pool Eligibility.
How do I apply for coverage?

Interested persons may request an application by contacting the Health Pool at (888) 398-3927 (e-mail address, texasriskpool@bcbstx.com). The application package will contain an Outline of Coverage, an Application for Coverage and a table of premium rates. You can also download the application package - See Application. Anyone interested in applying must return the completed application with the appropriate amount of premium. If the applicant is accepted, coverage becomes effective on the first day of the month following approval of the application by the Health Pool administrator.
Can I be turned down for coverage?

Yes. See Health Pool Non-Eligibility.
What about preexisting conditions?

See Health Pool Eligibility - Preexisting Conditions
   Can I obtain or keep Pool coverage if I am under age 65 and I become eligible for Medicare
   disability?

   In the case of coverage by Medicare, you are allowed to retain Medicare coverage if you
otherwise qualify for the Pool, but the Pool will provide medical coverage on a secondary basis,
and there is no coverage for outpatient prescription drugs.
   Can I go to any doctor or hospital?

   The Health Pool Board of Directors selected the BlueChoice Network as its Preferred Provider
   Organization ("PPO"). An individual covered by the Health Pool may go to any medical
   provider or hospital he or she chooses. However, if the covered individual chooses a BlueChoice
   provider, the individual will pay a smaller coinsurance payment. If the person chooses a provider
   outside the network, the person will pay a higher coinsurance payment. In addition, PPO
   providers  cannot charge the Pool member for amounts in excess of the PPO contract rate.
A non-PPO provider, that is not a ParPlan provider, may charge the difference between the
benefits allowed by the Pool and the provider's billed rate; therefore, the Pool member will be
  responsible for any charges over the allowed amount.
What are the health care benefits provided by the Health Pool?

After the covered individual has satisfied the deductible each year, the Health Pool will pay the
amount of covered expenses in excess of the coinsurance amount required to be paid by the
Insured until the Insured meets the coinsurance maximum for the year. After the individual
meets the coinsurance maximum for the year for PPO covered expenses, the Health Pool will pay
100% of covered expenses for the remainder of the year, subject to the maximum lifetime benefit
amount of $1,500,000. It should be noted that the calendar year deductible, the emergency care
deductible and charges for outpatient prescription drugs do not count towards the annual
coinsurance maximum.
What are the deductible amounts?
The Health Pool offers four plans. Plan I has a $1,000 deductible, Plan II has a $2,500 deductible,
Plan III has a $5,000 deductible, and Plan IV has a $7,500 deductible. The deductible amount
selected may not be changed to a lower amount after the Policy is issued. You may request to
change to a higher deductible, if offered, but only one such change will be allowed in a calendar
year.
Does the Pool offer a High Deductible Health Plan ("HDHP") that qualifies for a Health Savings Account
("HSA")?

No, at this time the Pool does not offer a qualified HDHP for an HSA. The Pool continues to evaluate the HDHP and Pool members will be notified if one is developed in the future.
What are the coinsurance amounts, after the annual deductible is satisfied?

The policy requires a 20% coinsurance payment for PPO providers and 40% for non-PPO providers. The annual out-of-pocket coinsurance maximum for PPO providers is $3,000 Plans I-III, and $5,000 for Plan IV. There is no coinsurance maximum for covered expenses from non-PPO providers.

What are the policy exclusions?

See Health Pool Benefits and Exclusions.

When does the policy terminate?

The Health Pool may cancel coverage for non-payment of premiums within the 31-day grace period. The policy is renewed each time the required premium is timely paid, but coverage will terminate for each person insured under this Policy:

a) 31 days after the day on which a premium payment for the Policy becomes due if payment is not made before that date;

b) the earlier of the premium due date or the first day of the month that follows the date on which the Pool determines:
               1) an Insured Person is no
                   longer eligible for coverage
                   under the Pool;
               2) an Insured Person is no longer
                   a resident of the state of
                   Texas except for: a child who
                   is student under the age of 25
                   and financially dependent upon
                   You or Your spouse; a child
                   for whom You and Your
                   spouse is obligated to pay child
                   support; or a child of any age
                   who is disabled and
                   dependent on You or Your
                   spouse;
               3) an Insured Person is 65 years
                   old;

c) 30 days after the date We make inquiry concerning an Insured Person's place of residence or any other eligibility criteria and You do not reply;

d) You request coverage to end;

e) on the date of death; or

f) state law requires cancellation of this Policy.

How are payments of premiums handled?

Premium may be paid monthly by automatic bank withdrawal or quarterly, semi-annually or annually by direct payment. Rates are based on age, gender, zip code and smoker status. Rates are subject to change with 30-days notice. An initial premium payment must be submitted with each application.

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Updated on: 07/02/2008