For Immediate Release
December 6, 2000
Contacts: Rusty Cheuvront or Mark Pfeiffer (502) 564-2611 or Roger Snell, Department of Insurance, (502) 564-6098                       

Governor Announces Kentucky Access Open for Business;
Program Offers Health Insurance Savings, Choices for High-Cost Individuals

Frankfort, Ky. - Governor Paul Patton announced Wednesday that Kentucky Access is open for business and will offer “attractive savings and health insurance choices” for individuals with high-cost medical conditions.

The program already has created a business environment where two insurers have returned to Kentucky, offering competitive choices for the entire individual market of 100,000 farm families, self-employed and working Kentuckians who must buy their own health insurance coverage, Patton said.

“When health insurance premiums are taking so much more out of the family budget each year, we must do everything we can to give consumers more competitive premiums, choices and benefits,” Patton said. “Kentucky Access is a significant step in that direction because most individuals with high-cost medical conditions are going to see a savings compared to the rates they were paying.”

Stabilizing the individual insurance market was a key Patton administration initiative and Kentucky Access was the result of bipartisan support and passage by the General Assembly during this year’s legislative session. The individual market includes approximately 100,000 Kentuckians who must buy their own insurance coverage. Kentucky Access is focused on about 2,000 of these individuals who currently have high-cost medical conditions and have experienced the highest insurance premiums in the market. An estimated 1,200 individuals are likely to enroll with Kentucky Access in the first year and up to 5,000 in future years, according to Department of Insurance estimates.

Patton credited Insurance Commissioner George Nichols III and state lawmakers for addressing the governor’s primary concern about working Kentuckians confronted with the difficult choice of whether they can pay for health insurance coverage.

Referring to a chart showing a sample of rates, Commissioner Nichols gave an example of a 55-year-old woman currently in GAP because of a severe medical condition. The woman now can choose the same standard health benefit plan and the same doctors and hospitals with Kentucky Access for $593 per month compared to Anthem’s $797 per month in premiums.

Kentucky Access offers another benefit option that is even more affordable, a non-standard PPO plan, where her premiums could be as low as $436 per month, for a one-year savings of $4,332, Nichols said.

Because rates are based on an individual’s age and gender, savings vary in every case, Nichols emphasized. (For example, savings for a 25-year-old male are estimated at $40 a month or $480 a year.) “The point is that there will be choices for the sickest Kentuckians who must buy their own health insurance coverage.”

Patton said Kentucky Access also helps the entire individual market because the program creates a business climate where insurers like Fortis and John Alden have returned to Kentucky’s individual insurance market and serious negotiations are continuing with other insurers.

Insurance agents and consumers can begin contacting Kentucky Access now for information, enrollment and application details by calling toll-free at 1-866-405-6145 or by accessing the web site at www.onlinehealthplan.com. Coverage for the first eligible recipients is effective Jan. 1, 2001.

Kentucky Access is a division of the Kentucky Department of Insurance. Lexington attorney Frederick Nelson was introduced at the news conference as the new Kentucky Access director. Nelson has a broad background that includes representation of injured persons in medical malpractice cases, management of a major physician network, and representation of employer groups in negotiations with health plans.

Kentucky Access has approximately $18 million in funds to start operations and expects in spring another $15 million from tobacco settlement funds and an $8.3 million assessment from all insurers. The money will subsidize health coverage costs and operating expenses on behalf of Kentucky Access members. Kentucky Access has contracted with winning bidder Anthem Health Plans of Kentucky Inc. for the use of Anthem’s extensive, statewide provider network and administrative services. Anthem is partnering with OASYS, an Indiana company, to issue identification cards, collect premiums, process claims, and perform all other administrative details and marketing. OASYS (Outsourced Administrative Systems Inc.) is the largest risk pool administrator in the nation, managing high-risk pools in four other states: Colorado, Indiana, Iowa, and Washington. Pay under the contract is largely based on the number of enrollees and should cost about $1 million in the first year.

Kentucky Access will offer three health benefit plans: 1. Traditional Access, a standard fee for service plan; 2. Premier Access, a standard PPO plan with a variety of deductibles and co-insurance options; 3. Preferred Access, a non-standard PPO plan, offering the most attractive rates with a variety of deductibles and other options.

Commissioner Nichols gave credit to all of the Department of Insurance employees who made it possible for Kentucky Access to open its doors on schedule, particularly Janie Miller, deputy commissioner of health insurance. “Janie dealt with every single detail, from the regulations, the benefits and the contracts, all the way down to making sure we had keys to the office and computers at the desks,” Nichols said.

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Kentucky Access is located in southeast Frankfort, near the intersection of I-64 and U.S. 60 (Versailles Road) at 46 Mill Creek Park. The toll-free number for Kentucky Access information is 1-866-405-6145.