Massachusetts Connector sets rates for low-income health plans

The Massachusetts Commonwealth Health Insurance Connector on Friday voted 9-1 to approve health insurance rates for low-income residents under the state's new health insurance law, the Boston Globe reports (Kowalcyzk, Boston Globe, 9/1).

The law requires all Massachusetts residents to have health insurance by next summer, but, in the event that the state cannot negotiate affordable premium rates, more than 500,000 uninsured residents will not have to meet the requirement.

In addition, the law requires the state to subsidize health insurance for the more than 100,000 uninsured residents with annual incomes between 100% and 300% of the federal poverty level (Kaiser Daily Health Policy Report, 9/1).

Under rates approved by the Connector, which is required under the new law to set the rates, individuals with annual incomes between 100% and 300% of the federal poverty level will pay premiums equal to 1.8% to 4.7% of their incomes, or a range of $18 a month to $106 a month.

Premiums for couples would be twice the dollar amount. Copayment amounts will vary from $20 for a visit with a specialist to $250 for a hospital stay, though some residents will be able to choose plans with lower copays for some services and then will have to pay slightly more toward their premiums, according to the Globe.

According to the Greater Boston Interfaith Organization, which offers workshops to help residents determine what they can afford, the premiums and copays are too expensive.

Residents who cannot afford the rates can appeal to the Connector to avoid tax penalties for not having health insurance (Boston Globe, 9/2).