Lower Rates Represent Victory for Health Care Consumers, Patrick Administration Cost Containment Efforts; Options for Members to Increase with Addition of New Plan
Holding the line on government spending without reducing benefits or increasing cost-sharing for members, the state-subsidized Commonwealth Care program today unanimously agreed to keep premium rates and base enrollee contributions flat for next year, and expanded the number of plans taking part in the program from four to five.
Originally projected to rise by two percent, the premium rates paid to the health plans and approved by the Commonwealth Health Insurance Connector Authority board of directors will actually decline slightly from the current year. The new rates take effect July 1 for one year.
“Governor Patrick has made health care cost containment a priority for the Administration,” said Administration and Finance Secretary Leslie A. Kirwan, who chairs the Health Connector board of directors. “Controlling costs helps us not only maintain, but also improve on the strong progress that health care reform has made in Massachusetts by ensuring that residents can continue to receive quality care they can afford.”
The Connector covers the entire cost of the premium for about 70 percent of the 165,000 Commonwealth Care members. The remaining members receive partial subsidies based on their income, which cannot exceed $32,508 for an individual and $66,168 for a family of four. Those who choose the lowest-priced plans next year will see no increase in their monthly premiums, and most of those who choose higher-priced options will actually pay less.
Since the inception of the program in 2006, the average annual rate of increase in premiums per covered person has been held under 4.5 percent, well below most benchmarks for health insurance.
“With more than 97 percent of Massachusetts residents insured, the Commonwealth must focus on controlling health care costs now more than ever,” said Secretary of Health and Human Services Dr. JudyAnn Bigby. “The Connector’s unanimous decision today to hold premium rates and base enrollee contributions steady is part of a statewide commitment to a multi-pronged strategy for ensuring the continued success of health care reform in Massachusetts.”
The Connector today also announced that a new insurance carrier has been added to the Commonwealth Care program, expanding the pool of doctors available to residents covered by Commonwealth Care.
Commonwealth Family Health Plan (CFHP) is a partnership between Centene Corporation and Caritas Christi Health Care. Centene is a national, multi-line health care organization with more than 1.2 million members in nine states. Caritas Christi Health Care is a local not-for-profit health care system with over 2,300 physicians and six acute care hospitals.
Through this new plan, Caritas will significantly add to the pool of primary care doctors now available to Commonwealth Care members. In addition to the Caritas network, CFHP will also be contracting with other providers for hospital, physician and ancillary services.
“As a result of an innovative procurement process, the commitment of local providers, and national interest in our landmark healthcare reform programs, we have succeeded in simultaneously lowering costs and increasing access,” said Health Connector Executive Director Jon Kingsdale. “This is a home run.”
The procurement process was headed by Health Connector Chief Financial Officer Patrick Holland. He noted that most service areas of the state that currently have only one plan to choose from will now have at least two, and that options will expand in other regions, as well.
“We are pleased with the results,” said Holland. “Not only have we increased the number of health plan options for our members, but just as importantly, we have lowered the expected cost of the program. In bringing together cost control incentives, strong financial oversight and high-quality, cost-effective health plans, we collectively have proven the value of such a powerful model, evidenced in the program’s annual expense trend over the last three years.”
The four original carriers will continue in the program. They are Boston Medical Center HealthNet Plan, Fallon Community Health Plan, Neighborhood Health Plan and Network Health.
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