Public Policy

Massachusetts’ subsidized insurance plan to cost $1.35 billion by 2011

Government provided health insurance may have advantages, but one of the drawbacks are that these programs are expensive.  According to the Boston Globe (“Subsidized care plan’s cost to double“), the cost of the Commonwealth Care program will increase from $158 million in 2007 to 1.35 billion by 2011 mostly due to increased enrollment.  Enrollment is expected to increase 39% per year over this time period while the cost per person is estimated to increase 23% per year.

Who will pay for this?  Massachusetts solution is to ask for $1.5 billion from the federal government (i.e.: taxpayers from other states will help finance this plan) to cover costs during the next 3 years.

[T]he [Massachusetts] governor’s spokesman, Joseph Landolfi, said, ‘It is clear that paying for healthcare reform will pose a much greater fiscal challenge than was anticipated by the previous administration.’

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