Daily News Updates - Health Insurance News

Mass. Effort in Good Health on 1st Birthday, Pt.2 -- The cost of success.

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One of the earmarks of the health insurance project’s success is the under sight in reception. Because so many more people got on board, especially for the low-cost subsidization, there were cost over-runs. The result of this caused some adjustments. Julie Appleby of USA TODAY added some further insight to the picture. She tells of some residents, who already had health insurance, sighing up for the state-system plan for it’s better coverage and found the rates to be about 46% higher (about $193 per month more). This is not a hike of existing health insurance, however.  It has better benefits. Even so, there are still problems with controlling medical costs. Many of the large medical providers are doing quite well for themselves.

It is generally agreed that the greatest challenge ahead is controlling and budgeting costs. The largest influx of new enrollees, of course, are those with low incomes. Most of these qualify for state-subsidized low-cost health insurance and, in some cases, free health insurance. There was a much greater population in this segment then Massachusetts had counted on. The initial estimates were budgeted at $472 million, as reported by the Commonwealth Connector (the state’s controlling agency). But, by year’s end, that figure had risen to $625 million. A scramble ensued, and the administrators had to be innovative to make it work.  According to Ms. Appleby, for this coming year, Governor Patrick is requesting $869 million from Mr. Leavitt’s agency. The projection from 2006 was only going to be $725 million.

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