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Massachusetts health care — wonky, with a healthy dose of reality

Globe Letter Slams Connector Premium Increases

Globe Letter Slams Connector Premium Increases

September 15, 2016

Our friend Vicky Pulos, attorney and advocate at the Massachusetts Law Reform Institute, has a blistering letter in today's Boston Globe, objecting to the reasoning used by the Connector in suddenly raising subsidized ConnectorCare premiums (see our post for background).

Here it is:

A safety net frays as Mass. health plan premiums spike

THE MASSACHUSETTS Health Connector’s decision to raise most premiums for subsidized insurance in 2017 represents a change in its longstanding policy of protecting the poorest of the poor from the full effects of premium increases (“Subsidized health plan raises rates 21%,” Page A1, Sept. 9). For the lowest-income ConnectorCare enrollees, including the destitute and the homeless, the cost of remaining with their current plan may increase by as much as $165 per month.

Massachusetts’ 2006 health reform law prohibited premium contributions for those living below the poverty level. Until last week’s board meeting, the Connector had honored the spirit of state health reform by fully subsidizing all plan choices for the very poor.

Several board members objected to this practice of what they called “cross-subsidization.” However, the Connector is not a private insurance company. It has no profitable or unprofitable product lines. It’s a public authority, and ConnectorCare is a public program. The fiscal constraints driving the Connector have more to do with declining state tax revenue, and the need to transfer funds back to the general fund to support other state spending, than with any other cause. Now that’s cross-subsidization.

Victoria Pulos
Senior health law attorney
Massachusetts Law Reform Institute
Boston

We agree. The Connector is a public entity, tasked with administering a public insurance program, for the benefit of the low-income people in the Commonwealth. We urge the Connector to re-examine its decision.

Thanks, Vicky, for a great letter.

                                                                                                                     -- Brian Rosman