On September 9, the Connector Board will hold a public hearing on proposed changes to the standards – known as MCC — that define the minimum level of coverage that meets the requirements of the individual mandate.
Last year, the Connector Board set the initial standards for MCC, including a requirement that all Massachusetts residents have prescription drug coverage by January 1, 2009. This set a very high bar – so high in fact that it did not include health insurance plans already being purchased by hundreds of thousands of Massachusetts residents who will now pay more for coverage.
In considering additional MCC changes, the Connector Board should be careful not to raise the bar even higher. In particular, the Connector Board needs to make sure that innovative plans that can be used with Health Savings Accounts (HSAs) continue to meet the MCC standard and are not subject to burdensome administrative requirements. These plans meet enrollee coverage needs at a more affordable premium and allow them to save tax-free for future health care expenditures. In a recent survey conducted by the National Business Group on Health HSA plans were listed as the most popular offering going forward.
The Connector Board should also exercise restraint in defining the “broad range of services” that need to be included in an MCC-compliant plan. Read more…
And Jesus answering said unto them, Render to Caesar the things that are Caesar’s, and to God the things that are God’s. And they marveled at him. Mark 12:17
When Massachusetts legislators passed our landmark health reform legislation in the spring of 2006, they left unresolved two critical questions, open to interpretation through regulation. One, what constitutes affordable and credible coverage for individuals for the purposes of deciding who is subject to the individual mandate? Two, what constitutes a fair and reasonable contribution for employers for the purposes of deciding which employers are subject to the $295 employer assessment? In the first case, the decision was left to the 11 member board of the Connector Authority, chaired by the Secretary of Administration and Finance. In the second case, the decision was left to the Division of Health Care Finance and Policy, under Commissioner Sarah Iselin and Secretary JudyAnn Bigby. For both critical decisions, it has fallen to the Patrick administration to sort out what amount is fair, reasonable, and affordable for both individuals and employers to contribute towards health care costs. This is no easy calculus.
The debate over what constitutes affordable and credible coverage has been robust and protracted. And because the Affordability Schedule has been tied to the premium schedule for Commonwealth Care, this debate promises to be renewed on an annual basis. Read more…