By Matthew Simon Channel 2 News KTUU

7:33 p.m. AKDT, July 25, 2012
ANCHORAGE, Alaska—
It's a growing debate, as national attention has been intently focused on health care: the denial of medical coverage based on pre-existing conditions.
 
The state's largest health insurer, Premera Blue Cross Blue Shield of Alaska, confirms to Channel 2 News that approximately 420 applicants in this state are denied individual coverage every year after revealing pre-existing medical conditions.
 
While most of Premera's roughly 101,000 Alaska customers receive employer-provided insurance, Premera senior manager Eric Earling says more than 9,000 other applicants buy individual plans.

About 1,800 additional Alaskans have applied for individual insurance plans this year alone, and, according to Earling, roughly 250 of those applicants have been turned away due to pre-existing conditions.

“The critical issue is trying to create balance so all these costs are able to be covered and the premiums are kept under control as much as possible for all of our customers,” Earling says.

Earling estimates another 160 Alaskans will be turned away by Premera before the end of 2012 due to pre-existing conditions, which leaves applicants with only one other avenue for coverage.

"There's a high risk pool that's specifically designed to be able to offer coverage to the folks with specific medical needs," Earling says.

That "high risk pool" is known as the Alaska Compressive Health Insurance Association, or ACHIA.  It's high-risk coverage but it comes at a high price and some fine print.
 
The ACHIA application, obtained by Channel 2, also shows a "pre-existing condition exclusion," stating there is a chance that "expenses incurred...during the first six months...of coverage are not covered." 
 
This exclusion has left many patients confused, wondering why expensive high-risk insurance aimed at assistance in one's time of need - is also turning applicants away.

Earling says Premera's emphasis is on personal responsibility and encouraging applicants to obtain coverage while still healthy, as it is the only clear way to guarantee long-term care.

"The specific issue there is you want to encourage people to buy and maintain medical coverage," says Earling.

Struggling Financially

On an overcast July night, Wendy “Bliss” Snipes greeted friends at Hill Top Ski Area’s Chalet, each receiving a big bear hug.

"Oh, my goodness. Thanks for coming. How are you?" Snipes said, her voice one of elation, as she greeted each attendee. All were there to participate in a "Benefit for Bliss," a fund raising effort thrown by friends to help Snipes as she struggled financially in her fourth battle with cancer.

"Just the turnout,” Snipes exclaimed holding back tears, “The amount of love."