As Massachusetts’ landmark effort to reach nearly universal health coverage continues, affordability of coverage remains a key concern for individuals and small employers, according to a study released July 26 by the Center for Studying Health System Change (HSC).
The study’s findings are detailed in a new HSC issue brief, Massachusetts Health Reform: Employers, Lower-Wage Workers and Universal Coverage. The study was based on interviews with about 25 market observers in January 2007, including representatives of employer groups, state agencies, health plans, providers, advocates, and other healthcare leaders knowledgeable about the reform.
All employers--except firms with fewer than 11 workers--face new requirements under the 2006 law, including paying a $295 annual fee if they do not make a “fair and reasonable” contribution to the cost of workers’ coverage. Although most market observers agreed that the primary goal of the reform is to improve access to health insurance, they contended that its ultimate success depends on affordability--in the short term as well as the long term. If affordable coverage is not available, it is unlikely that small employers on the cusp of offering insurance to their workers will be motivated to do so, according to the study. Instead, employers are more likely to pay the $295 annual fee rather than incur the greater costs of offering insurance.
