Massachusetts Commonwealth Choice Premiums Could Increase By 5%

Main Category: Health Insurance / Medical Insurance
Article Date: 15 Feb 2008 - 12:00 PDT

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Premiums for Massachusetts' nonsubsidized Commonwealth Choice health plans are expected to increase by an average of 5% over last year's premiums -- about half as much as plans for people with employer-sponsored coverage, according to a state memo released on Wednesday, the Boston Globe reports. The memo was prepared by Robert Carey, Commonwealth Health Insurance Connector director of planning and development, ahead of a Connector board meeting on Thursday. If approved, the premium increases would take effect July 1.

Premiums for some individuals would increase by as little as 2%, depending on their coverage, but others could face "substantially larger increases," according to the Globe. In some cases, the modest premium increases could be paired with higher copayments for physician office visits and prescription drugs. The Connector is expected to consider a proposal to increase some copays at Thursday's board meeting.

About 16,000 people are insured through Commonwealth Choice, and the state expects an additional 7,000 people to purchase coverage by the end of June. As of July 2007, when the plans went on sale, the least expensive coverage available to a 37-year-old Boston resident was $184 per month through Neighborhood Health Plan. If the increases are approved by the board, the same plan would cost $194 per month, according to Connector spokesperson Richard Powers.

The increase would not affect the 170,000 low-income Massachusetts residents enrolled in state-subsidized plans, although they could face separate increases in premiums and copays that have not yet been determined, according to the Globe (Dembner, Boston Globe, 2/14).

Hospital Care
In related news, Massachusetts residents made 12% fewer visits to hospitals seeking no-cost care in fiscal year 2007 than in 2006, according to a report released on Wednesday by the Massachusetts Hospital Association. The reduction in no-cost-care visits is "another indicator that health care reform is succeeding," according to Sarah Iselin, commissioner of the state Division of Health Care Finance and Policy (Boston Globe, 2/14).

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