Health law traps some in pricey state plans : 200,000 hard to insure can't get federal option

USA Today reports:

About 200,000 Americans whose illnesses have kept them from getting regular health insurance will not be allowed to enroll this summer in a new lower cost federal program for people like them because they already buy pricey state-run plans.

The nation's new health law creates a far cheaper insurance program opening July 1 for people with pre-exisiting medical conditions. To qualify, a person can't have had health coverage for six months.

The result is it excludes people already enrolled in 35 state high risk pools offering insurance of last resort. The state pools charge high premiums — often double standard rates for healthier people in the individual market — to help cover costs.

The new law provides $5 billion and says federal risk pools can't charge more than standard rates.

Great moments in state run medicine.