Monday, June 05, 2006
Most low-income residents would have to spend between $30 and $140 a month to obtain health coverage under the state's new obligatory insurance law, according to a study by the Romney administration.
These estimates, the first sign of how much it can cost the state's poorest adults to comply with the law, suggest that insurance premiums will be affordable for many low-income residents but not for all, customer advocates said
Health and Human Services Secretary Timothy Murphy said the state developed the variety based on what seem reasonable for residents given their other likely expenses. Some residents would receive discounts off of their share of the premium while employers allow them to buy healthcare on a pre-tax basis.
For people who earn less than the central poverty level -- $9,800 yearly for a single person -- the state will pick up the entire cost of the premium, which officials estimate would be about $300 a month for an entity and $600 a month for a couple. For individuals who make money between $10,000 and $20,000 a year, the state will pick up 80 to 90 percent of the cost of the premium, a kinder share than that borne by many private employers.
But the subsidies slowly fall as income rises. Individuals who earn $20,000 to $29,400 would pay a far higher share of the premium, as much as 47 percent, or $1,680 a year. Advocates caution that this group in particular can run into problem paying for health insurance, particularly those residents who have devastating housing and child-care expenses or debt.
An authority shaped to implement the law, called the Commonwealth Health Insurance Connector, would make the final decisions about the quantity of the subsidies. The group plans to gather on Wednesday and must make its decisions soon, because the insurance plans for lower-income residents must be prepared by Oct. 1.
posted by kanth
@ 1:53 AM
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