State Risk Pools

A state health insurance "risk pool" is a state-sponsored health insurance program that provides health insurance coverage to individuals that are unable to obtain health care due to a pre-existing medical condition. For many people with pre-existing conditions, state risk pools are the only available option.

Risk pools vary from state to state and not all states have risk pools for the uninsurable. Risk pools are established by state legislation and are usually setup as non-profit organizations.

Enrollment in a state risk pool health plan is still subject to waiting periods, premiums and set benefits, so it should not be considered free, comprehensive insurance that can be obtained immediately. Waiting periods, premiums, benefits and exclusions vary from state to state.

Because member premium payments are rarely enough to cover the cost of medical expenses for that member, risk pools require funding from outside sources. This funding sourse is typically outlined in the legislation establishing the risk pool and will come from sources such as taxes or assessments on health insurance companies.