Massachusetts Raises Insurance Premiums

Massachusetts Raises Insurance Premiums in Individual Health Insurance

The state-subsidized program, Commonwealth Care, was designed to help low-income residents afford health insurance. It was created at the same time a state mandate was passed requiring everyone living in Massachusetts to obtain coverage.

Once Commonwealth Care was in full swing, far more people enrolled than expected. Now, costs for the program are skyrocketing.

To save the program, the governor’s office, businesses, consumer advocates, and health insurers went into negotiations to tackle the rapidly increasing costs.

They finally came to an agreement to raise rates for Commonwealth Care coverage, state officials said yesterday, reported the Boston Globe.

Monthly premiums for members will go up an average of 10 percent. Copayments for doctor’s visits and prescription drugs will also be raised from $5 to $15 depending on income.

There will also be maximum caps on how much a policyholder has to pay for medical care and medications. The most a member will pay out-of-pocket each year ranges from $750 to $1,500.

All of these changes go into effect on July 1.

While the rate increases will help provide some additional funds for the program, it doesn’t solve everything. State officials acknowledged there was still a lot to be done to reverse this budget crisis.

“We have closed some of the fiscal gap here, but we have not closed most of it,” said Leslie Kirwan, the state’s secretary of administration and finance.

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