Massachusetts hikes premiums for state-subsidized health plans by 10%

Discussions are under way to find additional sources of funding and savings for the state's Commonwealth Connector program.

By Doug Trapp, AMNews staff. April 7, 2008.

Washington -- Higher-than-expected costs and enrollment in Massachusetts' health reform program are translating into higher premiums and co-payments for enrollees and a concern physicians will face pay cuts.

The Connector Authority, the board overseeing the state's comprehensive health system reform program, unanimously agreed on March 20 to raise monthly premiums by 10% for its subsidized health plans starting July 1, the beginning of the state's 2009 fiscal year.

Residents earning less than 300% of the federal poverty level are eligible for these plans, collectively known as Commonwealth Care. More than 176,000 people were enrolled in these plans as of March 1 -- 40,000 more than expected for fiscal 2008.

The hikes are an improvement over the 14% premium jump initially proposed by the health plans, according to Connector board spokesman Dick Powers.

The 10% increase will apply to enrollees in several income groups. For example, premiums will go up by $4, to reach $39 a month, for enrollees earning between 150% and 200% of the poverty level. Those at the high end of the qualifying income range, between 250% and 300% of the poverty level, will see premiums increase $11, to reach $116 a month.