Health Reform Law: What it Means in MA

 

These new reforms will increase federal funding for the state's Medicaid and Commonwealth Care programs by nearly $5 billion between 2014 and 2020 and allow us to expand subsidized coverage in 2014. No longer will Massachusetts be required to seek a Medicaid waiver every three years in order to sustain federal financial support for near-universal coverage. Since Massachusetts has been the model for many of the major principles that encompass federal reform the change we see here will not be as dramatic as the rest of the nation.

This year, specifically six months from now, adult children can be included in their parents' health plans until age 26. Our 2006 legislation recognized the problem young adults face affording health care. We already allow dependents to stay on their parents' plan for two years after losing dependency or until age 26, whichever comes first. The new federal plan will further reduce the financial burden for young adults and the anxiety for their parents.

In 2014, eligibility for subsidized insurance will expand. Those on our subsidized Commonwealth Care program will not see any change in the near-term. In 2014, however, new federal subsidies will take effect that expand coverage to include individuals and families who do not have access to affordable employer-sponsored insurance and earn up to 400 percent of the federal poverty level. That is currently around $43,000 for an individual and $88,000 for a family of four. Our current threshold is lower, at 300% FPL, or about $32,000 for an individual and $66,000 for a family of four.

For Commonwealth Choice members, the national legislation was written to avoid disruptions to your existing coverage. Your coverage will continue without change. There will be federal penalties for individuals and businesses who do not comply with the new law in 2014. Our state lawmakers will have to decide whether to maintain current state penalties, modify them or eliminate them in the next few years. Relatively few taxpayers and businesses have been penalized under state reform since compliance is so high here.

-From: Mass. Health Connector, Executive Director's Monthly Message, Jon Kingsdale, March 31, 2010.

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