Thousands 'Uninsurables' May Lose Health Coverage

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States fear Obamacare could cause thousands of very sick people to lose insurance coverage.

The pre-existing condition insurance plan is a lifeline for those considered "uninsurable."

The program is in danger, however, because the federal government has capped spending at $5 billion. States are expected to pay the rest.

"Enrollees also appear to be at risk of increases in both premiums and out-of-pocket costs that may make continued enrollment cost prohibitive," Michael Keough, chairman of the National Association of State Comprehensive Health Insurance Plans, wrote in a letter to Health and Human Services Secretary Kathleen Sebelius.

The official also warned of "large-scale enrollee terminations."

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