Greater Boston Interfaith Organization urges delay in penalties against uninsured

The Greater Boston Interfaith Organization on Wednesday asked state officials to delay for one year a provision of the Massachusetts health insurance law that will penalize residents who do not obtain insurance by July 1, the Boston Globe reports (Dembner, Boston Globe, 1/25).

A subcommittee of the Commonwealth Health Insurance Connector board on Friday outlined the proposed minimum coverage requirements and said a summary of initial bids by insurance companies found monthly premiums would average an estimated $380 for an individual. Former Gov. Mitt Romney (R) projected premiums of about $200 per month when he first proposed universal coverage, and the panel had expected monthly premiums averaging about $260 based on actuarial information the board reviewed last year (Kaiser Daily Health Policy Report, 1/22). According to a survey of 367 people who attended GBIO workshops, nearly 50% of people with incomes low enough to qualify for insurance subsidies did not have enough discretionary income to afford monthly premiums, which cost between $18 and $106 for an individual. The survey also found that nearly 40% of people with incomes between 300% and 500% of the poverty level could not afford $380 per month in premiums, in addition to out-of-pocket costs. Some officials have discussed trying to reduce premiums to $250 per month, but the survey found that 28% still would be unable to afford coverage. GBIO officials say delaying the penalty would allow the state to negotiate better, lower-cost insurance and could help the law be successful. Massachusetts Gov. Deval Patrick (D) met with GBIO on Wednesday but did not take a position on the group's proposal to delay the penalty, which would affect about 300,000 individuals. State Sen. Richard Moore (D), co-chair of the Legislature's Committee on Health Care Financing, said, "Assuming we validate ... (the interfaith organization's) numbers, we might want to ease the penalties for a year or two to see how the market shakes out" (Dembner, Boston Globe, 1/25).

The Commonwealth Health Insurance Connector Authority "was prepared for a figure" from health insurers "that would be a bit higher than Romney's initial projection" for monthly health insurance premiums, but it "wasn't prepared for the sticker shock of a premium that was 32% higher than anticipated," a Springfield Republican editorial states. The editorial adds, "If an affordable premium cannot be achieved, the board's hopes of managing yet another Massachusetts Miracle -- universal health care -- could turn into a nightmare" (Springfield Republican, 1/24).