Massachusetts Health Insurance Connector Approves 10% Increase in Affordability Standards
The Commonwealth Health Insurance Connector on Thursday approved new rules that increase the monthly premium considered affordable by about 10% from 2007 levels, the Boston Globe reports. Under the state's health insurance law, residents who do not obtain coverage face a penalty of up to $912 if they are uninsured for the whole year unless the state determines that they are unable to afford coverage.
The new rules establish a sliding scale based on income and family size that indicates whether the state considers premiums affordable. For example, according to the sliding scale, an individual with an annual income of more than $52,500 would be considered able to afford coverage regardless of the premium, while an individual who earns between $37,501 and $42,500 annually would be required to purchase coverage if the premium was $220 per month or less. The new rules will be finalized after the Connector holds a public hearing and a second vote.
Consumer advocates said they believe the new rules will require older residents with moderate incomes to spend too much on coverage. John McDonough, executive director of Health Care for All, said, "We are still concerned that the standard is not genuinely affordable" (Dembner, Boston Globe, 4/11).
