For most of us July brings with it visions of fireworks and long summer nights, sunshine and beaches. But for many this July 1st was a big day of celebration for other than the usual reasons, because as of July 1st those with pre-existing conditions could no longer be turned down for health insurance coverage.

In a move to accelerate one of the most hailed provisions of the health reform law that comes into full effect in 2014, the Federal government announced recently that it has enacted a transitional Pre Existing Insurance Plan, effective July 1st 2010. Under the transitional program states will have access to 5 billion dollars in funding to provide insurance for residents with preexisting conditions who had otherwise been denied coverage. Individual states will have the option of setting up their own programs, or give their residents access to the Federal Program. The transitional plans is designed to get those who had previously been denied coverage, access to healthcare until the Insurance Exchanges mandated by the Law come into full operation in 2014.

A Dip In The Pool

It is expected in the states that have High Risk Pools, where people who had been denied conventional health insurance had to turn, the infusion of funds will be used to increase access to those pools. In states that did not have such pools, the funds made available could be used to start them. It remains to be seen if the transitional plan will actually make the costs of such high risk health insurance any cheaper, or merely provide greater access to them, but either way for people who have had to go without the ability to obtain coverage at all - it's seen as a step in the right direction. 

Dollars and Sense

The 5 billion dollar program signed into law by President Obama on July 1st was seen by many as one of the first tangible benefits of the extensive health reform law. The actual rates that will be available to purchase Preexisting Health Insurance through the program will not be released until July 15th, but according to the new law they cannot exceed the going rate for private insurance for a healthy person in the same region. Coverage will begin as soon as August 1st. 

To find out how the program is being offered in your state, log on to http://www.healthcare.gov/.