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Wednesday, October 1, 2008  

Federal Funding Saves Massachusetts' Affordable Health Insurance Plan

In the midst of a tremendous economic crisis, most states are struggling to get federal funding that would help to provide affordable health insurance to their citizens.

But in Massachusetts the opposite has happened; according to The New York Times, Massachusetts' famous universal, affordable health insurance plan for state citizens was protected by federal financial support in the form of a waiver that allows the state to boost spending on health care.

The state's subsidized coverage plan for those who don't make enough to purchase medical insurance, but make too much to qualify for Medicaid, will be saved by these budget extensions that allow the state to spend up to $21.2 billion on the program over the next three years, an increase of $4.3 billion over the initial three-year period.

The state's plan, enacted in 2006, makes health care coverage the law, punishable with fines for those who don't obtain coverage. In order to make this possible, more affordable health insurance options have been subsidized for those who can't afford coverage on their own, and it was made illegal to turn consumers away based on pre-established conditions.

As a result, Massachusetts has the lowest rate of the uninsured in the country.

Lawmakers in the state see the gift of the waivers as proof that the federal government approves of the Massachusetts health care experiment, and hope that taxes on tobacco, improvements to the organization of their medical system, and raising money from employers that don't offer coverage to employees will help to minimize the costs of implementing universal health coverage in the state.