Daily News Updates - Health Insurance News

Kudos for Mass., Pt.2 -- Benchmark?

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Kingsdale advises that, because of the magnitude of the” huge financial venture”, there are still many challenges ahead. The subsidized health insurance costs are anticipated to reach $647 million this fiscal year and $869 million for 2009. To offset unexpected cost, the state is considering a hike in tobacco taxes. Additional cautions were issued by Grace-Marie Turner of the Galen Institute. Ms. Turner cites further tax increases and submits strong possibilities that FY 2009 could be much higher than projected. She suggests a figure “closer to $1.1 billion”, instead of the $869 million now projected. She predicts that "The fines I think are going to be an issue particularly as they go up." Other challenges of this venture include the expected 12% health insurance rate for FY 2009 which is already approved for next year and the possibility of a "crowd out" of private health insurance. Still other issues are dealing with Medicaid law. Since the state’s current federal Medicaid waiver will expire soon, there is a concern that the venture may no longer be legal, under new rules.

All in all, the marked success of widespread affordable health insurance is opening up all kinds of possibilities, both for Massachusetts and the many other states. These may even serve as a template for national consideration. As the rough spots and wrinkles are ironed out, all those who are studying the situation can find new revolutionary methods of providing widespread affordable health insurance using tried and proven principles. Anyway, it does appear that this state has come a long way in proving the viability of such a venture.