Saturday, March 22, 2008

Massachusetts wrestles with underfunded health plan

Massachusetts is now kicking some members out of the state health insurance pool citing the costs were “significantly more” than expected. People enrolled in the health plan pay only part of the cost and the rest is paid by the state. Participants contribution varies according to income. Both the state’s cost and the enrollees premiums are expected to rise more than 10% this year. Those removed from the price-subsidized state plan will be required to purchase commercial medical insurance. Few of the least expensive commercial health insurance plans are available in Massachusetts according to, a national leader in affordable health insurance.

The situation will only get worse since the plan does not have adequate protections against over-utilization. In time, health care inflation in Massachusetts will likely exceed national averages. New Jersey, California and other states looking to enact universal health care – note that Massachusetts-style is not the way to do it.

No comments: