Senator Murray Signs On
Senator Murray Signs On |
By Senator Therese Murray
Chairwoman, Senate Committee on Ways
and Means
The Commonwealth of Massachusetts has taken a historic step forward to provide health care to those who are uninsured. This health care reform legislation is the first of its kind in the nation, and all eyes are on us to see how this innovative solution will work.
As of July 1, 2007 all residents of Massachusetts will be required to have health care coverage, as long as affordable coverage is available. In addition, businesses with 11 or more employees must provide insurance coverage for their employees and will be required to make a "fair and reasonable" contribution. Employers who do not contribute will be required to make a "fair share contribution" which will be calculated on a per business basis, but will not exceed $295 for each employee.
The key elements encompassed in this reform will allow consumers to purchase affordable insurance, provide incentives for business to offer insurance, and establish reforms that in the long-run will provide savings and improve public health.
One of the components of the legislation will establish the Commonwealth Care Health Insurance Program which will enable low-income families and adults to purchase insurance with no annual deductible. The new program will require those who are enrolled to contribute toward the purchase of insurance on a sliding scale based on their income, but will allow very low-income uninsured adults who make less than $9,800 a year to receive private insurance with no monthly premium or deductibles.
In order to allow individuals and businesses to purchase affordable coverage, the legislation also creates the Commonwealth Health Insurance Connector Authority. This allows residents to purchase insurance with pre-tax dollars at a lower rate than an individual plan. The Connector will make it easier for individuals who are contractors, self-employed or have multiple jobs to purchase affordable insurance. It will also give small businesses the option of paying into the connector, so that they do not have to negotiate with the insurance companies on their own for a plan to provide to their employees.
In addition to providing avenues for affordable health coverage, the legislation also calls for increased funding in preventative programs such as cancer screening and diabetes education, restores certain health benefits to MassHealth members including dental coverage, and expands MassHealth eligibility to children in households with an income up to 300% of the federal poverty level. It aims to reduce the use of free care at hospitals and community health centers, and increase competitiveness which will further drive down the cost of insurance.
The basis for this reform is the idea that everyone shares in the responsibility for health care-- individuals, businesses, state and federal government, insurers and providers. Thorough that shared responsibility; we will work to check the skyrocketing cost of health insurance and at the same time move toward the goal of covering 90 to 95 percent of the 550,000 uninsured residents in Massachusetts.
This legislation is the first of its kind and is sure to be used as a blueprint as other states look to enact similar reforms. With this uncharted territory, Massachusetts is going to have be vigilant in monitoring the reforms and we will have to make adjustments and changes as health care reform is put into practice. We will continue to pursue the ultimate goal of providing quality health care that is affordable and accessible, accountable and sustainable.