Romneycare Costing Employers Millions
If perhaps if we can all stop swooning over Mitt Romney’s big religion speech and focus on an issue that actually matters in the coming race, it turns out the socialized health care boondoggle Romney dropped on Massachusetts is having a rather negative outcome for citizens of that state. The program is way over budget, premiums are skyrocketing, businesses are seeing expenses rise and already state officials are talking about limiting the benefits available under the system.
State officials yesterday announced that 300,000 people had obtained insurance under the new law – the bulk of those under heavily taxpayer-subsidized programs – and said they would extend deadlines for residents to sign up for insurance or face tax penalties.
Residents who qualify for Commonwealth Care premium-free plans – individuals who earn less than $15,315 annually and families of four that earn less than $30,975 – have until Dec. 28 to enroll. Residents who qualify for partially subsidized Commonwealth Care plans – individuals who earn less than $30,631 or a family of four that earns less than $61,951 – have until Dec. 20.
Even as employers cope with rising costs, insurers themselves are struggling to keep a lid on exploding premiums.
The Commonwealth Health Insurance Connector Authority, which oversees the implementation of health care reform, approved plans Tuesday aimed at limiting premium increases to 5 percent next year in unsubsidized plans, demanding detailed explanations from any insurer unable to meet that agreement. In addition, insurers are expected to maintain their levels of offered benefits.
“We’re of course trying to balance affordability with the range of benefits provided and understand that there are always trade-offs involved,” said Secretary of Administration and Finance Leslie Kirwan, who chairs the Connector board.
Last month Connector officials estimated that Commonwealth Choice premiums could rise by between 4 percent and 14 percent in 2008, setting another wave of anxiety over affordability and again reminding the authority of the problems posed by rising health costs.
State documents, citing “very strong” enrollment in the subsidized Commonwealth Care program, cite potential costs of $618 million for the program, while citing $472 million in budgeted revenue for it.
This was Mitt Romney’s baby. He created it. He pushed it through the legislature. He’s had to distance himself from it since. And it’s a much more important topic than his religion.
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