Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Costs soar for Mass. health care law
charlotte.com ^ | Apr. 12, 2008 | STEVE LeBLANC

Posted on 04/12/2008 8:49:42 PM PDT by neverdem

Associated Press

BOSTON --Two years after the state's landmark health law was signed, the cracks are starting to show.

Costs are soaring and Massachusetts lawmakers are weighing a dollar-a-pack hike in the state's cigarette tax to help pay for a larger-than-expected enrollment in the law's subsidized insurance plans.

But that hasn't dampened enthusiasm at the Statehouse. Leaders there boast that in the two years since former Gov. Mitt Romney signed the law with a choreographed flourish at historic Faneuil Hall, the number of insured residents has soared by nearly 350,000.

Along the way the law has been scrutinized by other states, sparked the ire of critics on the right and left, and drawn the attention of presidential candidates.

"It's the very first question I get when I'm with other governors," said Massachusetts Gov. Deval Patrick. "I don't think anybody is prepared to say that what we have done here in Massachusetts is necessarily the formula for the rest of the country or for a national reform, but at least we are trying."

No other state has launched as comprehensive a plan. California attempted their own health care expansion, but the $14.7 billion program failed to get out of a key Senate committee.

"The Massachusetts reform law remains the focal point for other states and the nation in trying to figure out if state-based reform is possible," said Alan Weil, head of the Maine-based National Academy for State Health Policy. "It's the biggest game in town."

One of the most radical fixtures of the law is the so-called "individual mandate" - the requirement that virtually everyone have health insurance or face tax penalties.

Anyone deemed able to afford health insurance but who refused to buy it during 2007 already faces the loss of a $219 personal tax exemption. New monthly fines that kicked in this year could total as much as $912 for individuals and $1,824 for couples by December.

It's not clear how many uninsured residents remain in Massachusetts. At the time the law was signed, estimates started at 500,000.

The law - and its individual mandate - has become a key talking point in the presidential race.

Hillary Clinton has made an individual mandate the centerpiece of her health plan. Fellow Democrat Barack Obama's plan doesn't include an individual mandate for adults, although he would require that children be covered. Republican John McCain wouldn't require universal coverage.

Under the law, anyone making less than the federal poverty level is eligible for free care. Those making up to three times the poverty level can get subsidized plans.

Anyone earning more is required to get health insurance through their employer, on their own, or by purchasing lower-cost plans through the Health Care Connector, the independent state agency overseeing the law.

Businesses are also on the hook. Those with 11 or more full time employees who refuse to offer insurance face $295 annual penalties per employee. Already, 748 employers have failed to meet that threshold and have paid $6.6 million to the state.

Rick Lord, president of the Associated Industries of Massachusetts, said the state must be "very mindful of placing burdens on businesses that don't exist in other states."

"It's a delicate balance," he said.

John McDonough, executive director of Health Care For All, a health care advocacy group that pushed for the law, concedes it's become a political punching bag.

Those on the left see the law as a poor substitute for a Canadian-style single-payer model, while those on the right say the law interferes with the free market.

"The two sides agree on nothing accept for one thing: They hate our little ecumenical experiment here in Massachusetts," he said. "It's almost as if they are the health care fundamentalists and we're like the heretics because we are coming together."

Michael Tanner, a senior fellow at the libertarian-leaning Cato Institute, said the law has been an unqualified failure.

Tanner was critical of the connector authority, a "super-regulatory agency" which has mandated levels of coverage. He also noted the vast majority of the newly insured are receiving subsidized care.

"They said it would get us universal coverage and reduce costs and it's done neither," Tanner said.

The biggest challenge is rising costs.

In 2006, a legislative committee estimated the law would cost about $725 million in the fiscal year starting in July. In his budget, Patrick set aside $869 million, but those overseeing the law have already acknowledged costs will rise even higher.

Lawmakers are hoping to close the gap in part with a new cigarette tax expected to generate about $154 million a year.


TOPICS: Business/Economy; Culture/Society; Front Page News; Politics/Elections
KEYWORDS: healthcare; soclializedmedicine
Navigation: use the links below to view more comments.
first 1-2021-4041-57 next last

1 posted on 04/12/2008 8:49:42 PM PDT by neverdem
[ Post Reply | Private Reply | View Replies]

To: neverdem

RomneyCare: You may find better quality, but you’ll never pay more.


2 posted on 04/12/2008 8:53:40 PM PDT by Mad_Tom_Rackham ("The land of the Free...Because of the Brave")
[ Post Reply | Private Reply | To 1 | View Replies]

To: neverdem
Message to Mitt Romney:


3 posted on 04/12/2008 8:56:59 PM PDT by Tolerance Sucks Rocks (To the liberal, there's no sacrifice too big for somebody else to make. --FReeper popdonnelly)
[ Post Reply | Private Reply | To 1 | View Replies]

To: neverdem
When the government runs health care, it reduces choice and raises the costs of obtaining it.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

4 posted on 04/12/2008 8:57:04 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
[ Post Reply | Private Reply | To 1 | View Replies]

To: neverdem

I would like to hear from the people about what kind of care they are receiving.


5 posted on 04/12/2008 8:58:57 PM PDT by CindyDawg
[ Post Reply | Private Reply | To 1 | View Replies]

To: neverdem
Lawmakers are hoping to close the gap in part with a new cigarette tax expected to generate about $154 million a year.

Tax the poor and lower middle class to subsidize those who otherwise wouldn't bother to get health insurance (for whatever reason).

6 posted on 04/12/2008 9:00:00 PM PDT by Tolerance Sucks Rocks (To the liberal, there's no sacrifice too big for somebody else to make. --FReeper popdonnelly)
[ Post Reply | Private Reply | To 1 | View Replies]

To: CindyDawg

With care like that, I’d rather have a government that doesn’t give a sh*t.


7 posted on 04/12/2008 9:00:47 PM PDT by Tolerance Sucks Rocks (To the liberal, there's no sacrifice too big for somebody else to make. --FReeper popdonnelly)
[ Post Reply | Private Reply | To 5 | View Replies]

To: CindyDawg
If its available. The truth is the Left wants government to manage your health with all the efficiency of the DMV. Long lines and rationed care.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

8 posted on 04/12/2008 9:01:00 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Tolerance Sucks Rocks
The cigarette tax won't raise the revenue to cover the costs. Medical costs outpace those of inflation.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

9 posted on 04/12/2008 9:02:09 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Tolerance Sucks Rocks

I didn’t see anything in the article about quality. I would figure that if it was that great , there would have been some praises included.


10 posted on 04/12/2008 9:02:47 PM PDT by CindyDawg
[ Post Reply | Private Reply | To 7 | View Replies]

To: CindyDawg
If government delivered affordable, quality health care to every one, then we should let government run it. It can't even manage that in Massachusetts. Why should we want to inflict that upon the rest of the country?

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

11 posted on 04/12/2008 9:08:41 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
[ Post Reply | Private Reply | To 10 | View Replies]

To: neverdem
I thought that cigarette taxes were meant to convince people to quit smoking.Yet,under this plan,if smokers in MA were to quit en masse many of the state's “victims” wouldn't get health care.
12 posted on 04/12/2008 9:09:07 PM PDT by Gay State Conservative (Women swooned in Mao's presence too.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: goldstategop

Government can’t even manage medicare.


13 posted on 04/12/2008 9:10:11 PM PDT by CindyDawg
[ Post Reply | Private Reply | To 11 | View Replies]

To: Gay State Conservative

Well I would sure quit or roll my own.


14 posted on 04/12/2008 9:10:59 PM PDT by CindyDawg
[ Post Reply | Private Reply | To 12 | View Replies]

To: goldstategop
If its available. The truth is the Left wants government to manage your health with all the efficiency of the DMV. Long lines and rationed care.

Yup...health care delivered with the efficiency of the Postal Service and the compassion of the IRS.

15 posted on 04/12/2008 9:11:17 PM PDT by Gay State Conservative (Women swooned in Mao's presence too.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: CindyDawg

they can’t manage themselves out of a cardboard box.


16 posted on 04/12/2008 9:23:22 PM PDT by television is just wrong
[ Post Reply | Private Reply | To 13 | View Replies]

To: neverdem
"but at least we are trying."

The typical liberal answer when you ask them why their policies are sending us all to hell in a hand basket.

17 posted on 04/12/2008 9:24:53 PM PDT by KoRn (CTHULHU '08 - I won't settle for a lesser evil any longer!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: neverdem

What a surprise! Who would have thought? Government lying to the people - perpetually, forever, relentlessly, unaccountably. Frigging scumbags.


18 posted on 04/12/2008 9:40:36 PM PDT by GregoryFul
[ Post Reply | Private Reply | To 1 | View Replies]

To: neverdem

Missing from the reporting is any attempt to quantify how much of the increase represents an increase in claims payout per enrolee. It appears that it’s almost all just because they built their original cost estimates based on a certain number of residents enrolling in subsidized care, and they’ve had more enrolees than they planned on having at this point in the program. In a way, that’s not surprising, given that 25 buck an employee fine situation. It’s a heck of a lot cheaper for a small business to pay the fine than to insure their employees.

The real question is going to be whether the cost of care and the utilization goes up or not. That’ll take a while to determine.


19 posted on 04/12/2008 10:09:27 PM PDT by ArmstedFragg
[ Post Reply | Private Reply | To 1 | View Replies]

To: neverdem

How many illegals in the several Massachusetts sanctuary cities signed up for the mandatory health insurance?


20 posted on 04/12/2008 10:11:55 PM PDT by DBrow
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-57 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson