Kaiser Daily Health Policy Report

Monday, January 05, 2009

State Watch

      Enrollment in a Massachusetts program designed to help unemployed state residents pay health insurance premiums has increased by 73% in the past year, the Boston Globe reports. The state Medical Security Program, which is funded by a tax on employers, pays 80% of a laid-off worker's monthly insurance premium for up to 46 weeks. For people who cannot afford to retain their coverage, even with the assistance money, the program offers full basic coverage and charges a copayment of about $15 per doctor visit. To be eligible for the program, an individual's family income for the six months prior to being unemployed plus projected income for the next six months must not exceed 400% of the federal poverty level.

About 13,000 unemployed state residents were enrolled in the program at the end of November 2008 -- up from 7,710 in 2007 -- and officials say the number continues to rise rapidly. MSP Director Wendy Hamlett said, "The calls are increasing even as we speak," adding, "We are receiving 200 daily applications, on average. Five months ago, we were getting about 75 to 100 applications a day." According to the Globe, "That has raised concerns about the program's solvency, especially after Gov. Deval Patrick (D)" allocated $35 million from the MSP reserves earlier this year to fill funding gaps in the state coverage system established by Massachusetts' health insurance law. However, the $71.8 million remaining in the MSP reserves at the end of November 2008 should be enough to allow the program to continue another year, Hamlett said.

The program is unique to Massachusetts. Health benefits under the program end when unemployment benefits are exhausted, but the federal government twice this year has extended the time limits for collecting unemployment. The Globe reports that other state-sponsored health insurance programs, such as Commonwealth Care, have not experienced such large increases in applications (Lazar, Boston Globe, 12/28/08).