Massachusetts Agency proposes health care premium levels for low-income residents

The Massachusetts Commonwealth Health Insurance Connector, which is tasked under the state's new health insurance law with determining what premiums are affordable for low-income state residents, is proposing that the state's lower-income uninsured residents spend up to 6.6% of their income to purchase health coverage, the Boston Globe reports.

The law requires all Massachusetts residents to have health insurance by next summer, but if the state cannot negotiate affordable insurance, more than a half-million uninsured people will be exempted from the mandate, according to the Globe.

The law calls for the state to subsidize coverage for the more than 100,000 uninsured residents with annual incomes between 100% and 300% of the federal poverty level.

The Connector proposal would require lower-income single adults to pay between $10 and $100 per month toward their health insurance, or between 1% and 4.5% of their income, depending on their annual earnings.

Lower-income couples would pay between $20 and $200 monthly, or between 1.5% and 6.6% of their income. Some advocates have said that low-income residents cannot afford health insurance that costs more than 2% of their annual income, a percentage close to what middle-income residents who have employer-sponsored insurance pay.

John McDonough, executive director of Health Care For All, said, "The concern is that lots and lots of people under 300% of the poverty level are not walking around with extra money in their pockets.

Not only are they not walking around with extra money, they are walking around under the crushing burden of debt. They're living paycheck to paycheck."

Celia Wcislo, a member of the Connector and assistant division director of the Service Employees International Union Local 1199, said.

"We wanted to make sure we cover as many people as possible. If it only covers half of the people who need it, how good of a plan is that?" (Kowalczyk, Boston Globe, 8/17).

Thomas Trimarco, secretary of administration and finance for the Gov. Mitt Romney (R) administration and a member of the Connector, said the proposed percentages are too low, especially for residents who have slightly higher incomes. The Connector is expected to vote on the proposal Sept. 1 (Kowalczyk, Boston Globe, 8/18).