Zane Benefits Publishes New Information on PCIP Suspending Enrollment

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The Federally-Run PCIP Suspends Acceptance of New Enrollment Applications until Further Notice

Today, Zane Benefits, Inc. published new information on PCIP suspending enrollment. Zane Benefits, which provides comprehensive and flexible alternatives to traditional employer sponsored health benefits, is the leader in defined contribution and health reimbursement arrangements.

According to Zane Benefits’ website, HHS administration announced it would stop allowing new enrollees in the Pre-Existing Condition Insurance Plan (PCIP). Beginning February 16, 2013, the federally-run PCIP is suspending acceptance of new enrollment applications until further notice. PCIP will continue providing coverage to more than 100,000 people currently enrolled nationwide.

What is PCIP?

According to Zane Benefits’ website, PCIP was established in 2010 under the Affordable Care Act (ACA) to provide coverage for uninsured people unable to find health insurance coverage in the private insurance market. The program was designed as a bridge to January 1, 2014, when the new health insurance marketplaces take effect.

According to Zane Benefits website, to qualify, people applying for the Pre-Existing Condition Insurance Plan (PCIP) must:

1. Have been without health coverage for at least six months,

2. Have a pre-existing condition or have been denied health coverage because of a health condition, and

3. Have U.S. citizenship or legally reside in the U.S.

Eligibility is not based on income and people who enroll are not charged a higher premium
because of their medical condition. The law appropriated $5 billion for the payment of claims
and administrative expenses in excess of the premiums collected from people enrolled in the

Why is PCIP enrollment being suspended?

According to Zane Benefits website, it appears PCIP enrollment is being suspended due to lack of sufficient funding. As PCIP is was intended to be a temporary program for those locked out of the "old" insurance marketplace, the program was given a limited amount of funding ($5 billion) from Congress.

According to a notice on, the suspension will help ensure that funds are available through 2013 to continuously cover people currently enrolled in PCIP.

How many people are enrolled in PCIP?

While less than originally projected, PCIP has experienced significant, sustained growth since
the program launched in 2010. The below image represents the number of people enrolled in state-based PCIPs and the federally-administered PCIP since the program began.

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About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHRA") for Health Reimbursement Arrangements (HRAs) and defined contribution healthcare. The flagship software provides a 100% paperless administration experience to employers and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about ZaneHRA, visit

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Christina Merhar
Zane Benefits
800-391-9209 6725
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