A bill to establish a government-backed insurance pool for people with illnesses who cannot afford or do not qualify for private insurance won final legislative approval Thursday. Thirty-four states already offer such insurance plans. The insurance won’t be free. Subscribers will pay 65 percent of the cost through their premiums. Premiums will be set at 150 percent to 200 percent of what a healthy person would pay for private insurance. Establishing a high-risk insurance pool was a priority for Democratic lawmakers this year, but questions about how to pay complicated the debate.

In May, the House decided to put an assessment on private health insurance policies, but key senators did not like that idea. The Senate floated several proposals before deciding to take revenue from an existing tax on health insurance premiums. In addition, the state employee health plan will pay about $700,000 a year into the pool, the equivalent of $1.50 for each person who has state government insurance. The Health and Wellness Trust Fund, which handles some of the money that comes from the state’s share of the 1998 national tobacco settlement, will provide $5 million in the first year. The Senate approved the insurance plan Wednesday. The premium tax is expected to provide $14.3 million to the insurance program next year.

Enrollment would start no later than Jan. 1, 2009. About 2,000 people are expected to enroll in the first year, said Rep. Verla Insko, D-Orange and the bill's sponsor. As many as 14,000 people are expected to have the insurance in 10 years. People who enroll buy the insurance for about three years, on average. The measure now goes to Gov. Mike Easley for his signature.

(Lynn Bonner, THE NEWS & OBSERVER, 8/03/07)