Masachusetts Health Care Reform Act

Health Care Access and Affordability
Conference Committee Report
Summary:
This Conference Committee Report contains a comprehensive plan for increasing
health insurance coverage for all residents of Massachusetts. This bill is a bridge
between principles in the House and Senate bills, H 4479 and S 2282. The bill
would redeploy current public funds to more effectively cover currently uninsured
low-income populations, and would make quality health coverage more affordable
for all residents of the Commonwealth. The bill promotes individual
responsibility by creating a requirement that everyone who can afford health
insurance obtain it, while also responding to concerns about barriers to health care
access. Provisions in the bill aim at achieving nearly universal health insurance
coverage, but also maintain a strong safety net that has historically distinguished
the state. Finally, the bill would ensure that the Massachusetts Medicaid program
complies with the terms of the new federal waiver, maintaining continued receipt
of annual payments from the federal Medicaid program.
A) Commonwealth Health Insurance Connector
The bill creates the Commonwealth Health Insurance Connector, to connect
individuals and small businesses with health insurance products. The Connector
certifies and offers products of high value and good quality. Individuals who are
employed are able to purchase insurance using pre-tax dollars. The Connector
allows for portability of insurance as individuals move from job to job, and
permits more than one employer to contribute to an employee’s health insurance
premium. The Connector is to be operated as an authority under the Department of
Administration and Finance and overseen by a separate, appointed Board of
private and public representatives.
B) Insurance Market Reforms
The bill merges the non- and small-group markets in July 2007, a provision that
will produce an estimated drop of 24% in non-group premium costs. An actuarial
study of the merging of the two insurance markets will be completed before the
merger to assist insurers in planning for the transition. The bill also enables
HMOs to offer coverage plans that are linked to Health Savings Accounts,
reducing costs for those who enroll in such plans. Young adults will be able to
stay on their parents’ insurance plans for two years past the loss of their dependent
status, or until they turn 25 (whichever occurs first), and 19-26 year-olds will be
eligible for lower-cost, specially designed products offered through the Connector