Massachusetts Officials Announce Proposals To Lower Insurance Premiums

Massachusetts Gov. Mitt Romney (R) on Wednesday introduced a proposal that would expand health care coverage by lowering private insurance premiums, the Boston Globe reports. Romney said about 168,000 of Massachusetts' approximately 500,000 uninsured residents could afford private insurance if monthly premiums were lower. Under his proposal, health plans would offer less-comprehensive coverage for about $200 per month, compared with the current average of $350 to $500 monthly for private health plan premiums. The state also has received permission from the federal Department of Labor to allow residents to pay their premiums pre-tax, meaning they could save an additional $40 to $66. Romney said the new insurance plans would include coverage for preventive and primary care, emergency services, surgery, hospitalization, ambulatory care, mental health benefits and prescription drugs. A new state office, called the Commonwealth Care Exchange, would oversee pre-tax payments of premiums. The plans would be available to all uninsured individuals, and companies that employ 50 or fewer workers would be able to purchase the insurance for their employees. State Senate President Robert Travaglini (D) on Wednesday announced a separate proposal that also would encourage insurance companies to offer less-expensive plans. Travaglini said his bill could reduce the number of Massachusetts' uninsured by 50% in two years. Unlike Romney's plan, Travaglini has proposed spending an additional $45 million, which would be matched with $45 million in federal funds, to raise Medicaid reimbursement rates. Travaglini said that because health care providers are reimbursed for 80% of the cost of services they provide to Medicaid beneficiaries, they pass the cost on to insurers, which then raise premiums (Greenberger, Boston Globe, 4/7).