Proposed Massachusetts Minimum Coverage Requirements Not Met By 200,000 Insured Residents
February 3, 2007 – 11:32 am | posted in Health InsuranceMore than 200,000 Massachusetts residents who already have health insurance would need to buy additional coverage to meet minimum standards proposed by the Commonwealth Health Insurance Connector, according to a survey by the Massachusetts Association of Health Plans, the Boston Globe reports. Under the Massachusetts health insurance law enacted last year, all state residents must obtain health insurance that meets minimum requirements by July 1 or face tax penalties. A Connector panel earlier this month outlined proposed minimum coverage requirements and said initial bids from insurers indicated that the average monthly premium for individual coverage would be $380. Former Gov. Mitt Romney (R) projected premiums of $200 when he first proposed universal coverage. Individuals who have insurance that does not meet the minimum standards would be fined about $200 in 2008 and more in the future. The Connector is expected to vote on the standards next month. For its survey, the association looked at coverage provided by five insurers in the state that control about 90% of the Massachusetts insurance market. The survey focused on prescription drug coverage and plans with health savings accounts. The number of people estimated by the association to have inadequate coverage “is more than four times the estimate made by the board’s staff earlier this month before the board altered the proposed standards,” the Globe reports. The estimate does not include residents who have coverage through national companies or plans that offer policies that limit benefits per sickness or per hospital visit. In addition, federal tax rules regarding HSAs cap out-of-pocket expenses and deductibles at levels different than those proposed by the board, according to the association. Reaction
Association President Marylou Buyse said, “We think this is taking health care reform backwards. These are products that people have had for years. People who buy them think they’re good plans.” Jon Kingsdale, executive director of the Connector, said the MAHP estimate would be useful when his group re-evaluates the minimum requirements. Richard Lord, also a board member and president of the Associated Industries of Massachusetts, said the survey is “very troubling.” Lord said, “The new law was about expanding access for people without any health insurance. I don’t think we should be forcing people who do have some coverage to spend more” (Dembner, Boston Globe, 1/30).
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