Pennsylvania’s application for $160 million to establish a high-risk health insurance pool for uninsured state residents who have pre-existing medical conditions was approved by federal authorities.

Joel Ario

“The Obama Administration has approved our plan to provide health insurance to thousands of Pennsylvanians who have been unable to obtain affordable coverage because of pre-existing conditions,” Joel Ario, Pennsylvania’s insurance commissioner, said in a statement.

The program is funded through by the U.S. Department of Health and Human Services through a $5 billion award included in the federal health reform legislation approved in March.

Ario said the state funds “will provide critical bridge coverage to uninsured individuals between now and 2014, when the full implementation of federal reform will prohibit discrimination against individuals because of their health status.”

Up to 5,600 uninsured state residents may be enrolled in health plans through the program, Ario said.

The plan’s benefit package will include preventive care, physician services, diagnostic testing, hospitalization, mental health services, prescription medications and much more, with subsidized premiums of $283 a month.

Ario said his department is moving as quickly as possible to start the program. The next step is to select the plan’s administrators, which is being done through a competitive bid process it started.

Once selected, the contractor or contractors will work with the Insurance Department to launch the program, including offering information on how to apply and eligibility requirements. The contractor(s) will manage the program and its benefits, as well as staff toll-free help lines to answer queries and assist with applications, Ario said.