Monthly premiums for low-cost health plans in Massachusetts fell by 8% in second round of bidding

Monthly premiums for the four lowest-cost health plans submitted to the Massachusetts Commonwealth Health Insurance Connector Authority decreased by an average of 8% in the second round of bidding, the Boston Globe reports (Krasner, Boston Globe, 3/30).

The plans are approved to meet minimum coverage requirements to comply with the state's universal coverage law, including requiring prescription drug coverage.

Under the state's health insurance law, all residents must obtain health care coverage by July 1 or face tax penalties (Kaiser Daily Health Policy Report, 3/21).

Records obtained by the Globe show that insurers took different approaches to lowering premiums.

For example, Harvard Pilgrim Health Care reduced its monthly premiums by 18% after restructuring its plan from a PPO to an HMO and increasing the amount beneficiaries would pay in deductibles and out-of-pocket expenses.

Tufts Health Plan reduced premiums by 6.1%, partly by restricting its provider network, while BlueCross and BlueShield of Massachusetts reduced its premiums by 1.5%, in part by eliminating coverage for preventive dental care. Neighborhood Health Plan reduced its premiums by 1.2%.

The Connector also declined three out-of-state insurers that offered the highest-cost plans during the first round of bidding, which lowered average monthly premiums by 19%.

The new plans, called Commonwealth Choice, go on sale May 1 and take effect July 1 (Boston Globe, 3/30).