Massachusetts spent $793.7 million in FY 2008 on health coverage for employees of large businesses, report finds

Apr 5 2009

The cost of providing subsidized health coverage to Massachusetts residents and their families who work for large companies increased by 24.6% to $793.7 million in the last fiscal year, according to a state Division of Health Care Finance and Policy report released on Wednesday, the Boston Globe reports.

According to the report, the number of employees and their dependents covered by state programs increased by 12% in 2008 from 2007. Wal-Mart has the highest number of employees receiving public health coverage with 4,796 workers, followed by Stop & Shop, with 4,731. The Commonwealth of Massachusetts is ranked third in that category. The rankings only include companies with 50 or more workers.

The Globe reports that the increase likely will restart the debate over whether employers should contribute more to their workers' health care. Lindsey Tucker, policy manager at Health Care for All, said, "Increasingly, employers are getting tremendous benefits under health reform," adding, "The question is not whether employers are doing their fair share for the employees they are covering, it's whether they are doing their fair share for their employees the state is covering." HCFA is supporting legislation that would require employers to contribute more to a state fund that pays for subsidized health coverage programs.

Associated Industries of Massachusetts CEO Richard Lord said, "When we designed health care reform, we tried to strike a balance in terms of what employers' responsibilities should be, and also tried to make sure we weren't placing Massachusetts employers at a competitive disadvantage," adding, "We have seen that health care reform is supported by most employers. I worry that if we start tinkering with the law, that support could erode" (Lazar, Boston Globe, 4/2).

The report is available online (.pdf).