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Massachusetts Health Care Advocates Critical of State Plan Aug 8, 2006 - Linknet Health News

Massachusetts Health Care Advocates Critical of State Plan

Health care advocates in Massachusetts on Tuesday came out against the state's new health insurance law saying it asks far too little of businesses. They said the law only requires businesses to provide employees inadequate bare-bones coverage in order to avoid a $295 per-worker fee for companies offering no insurance plan.

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Business organizations on the other hand countered that this was a compromise intended to guarantee coverage for virtually all state residents. At the time this was the best that could be expected. The goal was a modest one: to end a system that allowed companies to offer no insurance at all and let others in the state cover the shortfall.

The Massachusetts legislation was the most ambitious health care reform in the U.S., and its objective was not to require employers to meet minimum coverage levels.

The new rules will allow companies to avoid paying the $295 if they agree to contribute 33 percent of the cost of an individual employee's health care premium. Alternatively, the fee would not apply if at least one-quarter of their full-time employees choose to enroll in the company's group health plan, regardless of how much coverage is included. Employers can't meet the 25 percent requirement by counting workers insured through spouses.

Part-time, seasonal and contract workers are not included in the plan at all.

Critics of the health care plan say that employers nationwide who offer insurance cover more than three-quarters of their full-time workers' individual health costs -- far above the 33 percent minimum in the state rule. They fear that the 33 percent requirement could actually encourage some employers to reduce coverage to that level.

Advocates who support the compromise say it is unrealistic to compare freeloading companies to those paying a normal level of insurance. They say these companies are currently not paying anything, and that is what should be kept in mind. This new legislation will move them to a minimum of 33%.

The new legislation is intended to move as many of the state's estimated 550,000 uninsured into health care plans as possible within the next 12 months.


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