Massachusetts announces universal health care coverage premium rates that are expected to cost the state 10% less than previous estimates

Massachusetts health insurance premium rates for low-income residents are in line with officials' predictions, and the state should have adequate funding to implement its new health insurance law next year, the Boston Globe reports.

The law requires all residents to obtain health insurance. Health plan subsidies will be provided for uninsured residents with annual incomes less than 300% of the federal poverty level.

State regulators on Thursday announced that insurers who have bid to cover residents under the law -- Boston Medical Center's HealthNet, Cambridge Health Alliance's Network Health, Neighborhood Health Plan and Fallon Community Health Plan -- will charge average monthly premiums of between $276 and $391, depending on the type of plan selected and where the enrollee lives.

The state will pay premiums for individuals who have annual incomes of $9,804 or less and a portion of premiums for people with incomes above the poverty level based on a sliding scale. Gov. Mitt Romney (R) had estimated that premiums would be about $300 a month, while legislative staff members predicted that premiums would average $325.

Patrick Holland -- CFO for the Commonwealth Health Insurance Connector Authority, the agency that set the premiums and is overseeing implementation of the law -- said based on the rates, the estimated cost of state subsidies will be about 10% less than the projected $160 million this fiscal year.

Residents who qualify for a full subsidy can begin enrolling in the program on Monday, while enrollment for uninsured residents with annual incomes between 100% and 300% of the poverty level begins Jan. 1, 2007 (Kowalczyk, Boston Globe, 9/29).