Massachusetts Says Monthly Premiums for Low-Income State Residents Under New Law To Cost $30 to $140

Most low-income Massachusetts residents will have to pay monthly premiums ranging from $30 to $140 under the state's new health insurance reform law, according to an analysis by Gov. Mitt Romney's (R) administration, the Boston Globe reports. The analysis is the first indication of how much low-income Massachusetts residents will pay for health insurance under the new law (Kowalczyk, Boston Globe, 6/4). Romney in April signed into law a bill that aims to expand health care coverage to nearly all of the state's uninsured residents. The bill will require all residents to purchase health insurance by July 1, 2007, and will create a low-cost, state-subsidized health insurance program for residents with incomes up to 300% of the federal poverty level (Kaiser Daily Health Policy Report, 4/13). For state residents with annual incomes lower than the federal poverty level, the state will pay for the entire cost of the premium. For residents with annual incomes between $10,000 and $20,000, the state will pay between 80% and 90% of the premium's cost. For residents with annual incomes between $20,000 and $29,400 the state will pay up to 53% of the monthly premium. In addition, some residents will receive discounts on their share of the premium when employers allow them to purchase health care on a pretax basis. The Commonwealth Health Insurance Connector Authority, which will make the final decision on the amount of the subsidies, plans to meet on Wednesday to discuss the issue. The group is scheduled to make its decision soon. Insurance plans for lower-income residents must be prepared by Oct. 1 (Boston Globe, 6/4).