Monthly Premiums For Low-Cost Health Plans In Massachusetts Fell By 8% In Second Round Of Bidding

April 7, 2007 – 6:05 pm | posted in Health Insurance

Monthly premiums for the four lowest-cost health plans submitted to the Massachusetts Commonwealth Health Insurance Connector Authority decreased by an average of 8% in the second round of bidding, the Boston Globe reports (Krasner, Boston Globe, 3/30). The plans are approved to meet minimum coverage requirements to comply with the state’s universal coverage law, including requiring prescription drug coverage. Under the state’s health insurance law, all residents must obtain health care coverage by July 1 or face tax penalties (Kaiser Daily Health Policy Report, 3/21). Records obtained by the Globe show that insurers took different approaches to lowering premiums. For example, Harvard Pilgrim Health Care reduced its monthly premiums by 18% after restructuring its plan from a PPO to an HMO and increasing the amount beneficiaries would pay in deductibles and out-of-pocket expenses. Tufts Health Plan reduced premiums by 6.1%, partly by restricting its provider network, while BlueCross and BlueShield of Massachusetts reduced its premiums by 1.5%, in part by eliminating coverage for preventive dental care. Neighborhood Health Plan reduced its premiums by 1.2%. The Connector also declined three out-of-state insurers that offered the highest-cost plans during the first round of bidding, which lowered average monthly premiums by 19%. The new plans, called Commonwealth Choice, go on sale May 1 and take effect July 1 (Boston Globe, 3/30).

“Reprinted with permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

ShareThis

Also Read

Massachusetts Connector Calls For Lower Bids For Health Plans Under State Insurance Law After Monthly Premiums Average More Than Anticipated

Average Monthly Premiums For Medicare Prescription Drug Benefit Basic Coverage Will Increase To $25 In 2008, CMS Says

Massachusetts Health Insurance Connector Authority Board Rejects Proposal For High-Deductible Prescription Drug Plan

CMS Issues Final Rule On Bidding For Durable Medical Equipment

Newspapers Examine Medicare Part B Premiums, Medicare Advantage Plans

Medicare Prescription Drug Benefit Open Enrollment Begins

Massachusetts Connector Likely To Approve Health Insurance Exemptions

As Congress Considers Medicare Drug Plan Changes, New Study Finds Considerable Variation In Seniors’ Drug Costs

CMS Proposes New Rules For Redesigning Medicaid, States Have Greater Flexibility In Benefits, Cost Sharing

Massachusetts Faces Challenges In Convincing Low-Income Residents To Purchase Health Insurance, Boston Globe Reports