State High Risk Pool Funding Extension Act of 2005

H.R. 3204, the State High Risk Pool Funding Extension Act of 2005, provides federal grants to states to help fund and operate "high-risk pools," which are specialized health insurance programs for individuals who cannot obtain private coverage due to pre-existing medical conditions. The bill extends funding through 2010 and updates the formula for how money is distributed, ensuring that states with existing pools receive support for operating losses while encouraging other states to create new programs.

For citizens, this legislation aims to make health insurance more accessible and affordable for those with chronic or serious illnesses by capping premiums at 200% of standard rates and requiring states with high premiums to use grant money to lower costs for enrollees. Additionally, the bill funds supplemental benefits such as low-income subsidies, disease management programs, and reduced waiting periods for coverage of pre-existing conditions. By supporting these state-run programs, the bill provides a safety net for individuals who might otherwise be denied coverage in the private insurance market.