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Individual Health Insurance Prices Fall in Massachusetts
Is Affordable Health Care Finally a Reality?
May 2008
The state of Massachusetts made a lot of news this year when they made individual health insurance mandatory for all residents age 18 and older.
Now, as their state budget rises and falls with this new system of medical insurance, many legislators are wondering if they've managed to offer affordable health care to their constituents, or if they're only going to see their state go broke.
Under Massachusetts' new laws, state citizens must purchase insurance so long as affordable health care is available to them, otherwise they face a tax penalty. The state also offers subsidized coverage for low-income residents, and employers must contribute to the cost of their workers' coverage, or pay into a fund.
As a result, 340,000 previously uninsured state residents in Massachusetts now have coverage; 1/3 of them have purchased individual health insurance, and 2/3 of them are enrolled in subsidized programs.
As a result of the law, premiums for individual health insurance have dropped by nearly half across the state - no small amount as anyone who pays high premiums can attest.
But at the same time, costs for the Commonwealth Care subsidized program are increasing by 6.5% per person, which adds up to a lot of money. Commonwealth Care spending is expected to reach $647 million this fiscal year, and legislators are contemplating a tobacco tax in an effort to balance the budget.
Another concern is whether or not taxpayers will be paying more as a result of affordable health care being offered to more state citizens.
Clearly there are still some wrinkles to iron out of this plan, but if individual health insurance prices keep dropping, and the costs of medical debt begin to decline as more people enjoy coverage, hopefully a large sum of that money will find its way back into state coffers.
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