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An URGENT Message from the Health Care Committee Releases Bill with Joint Employer/Employee Responsibility
On Wednesday the Joint Committee on Health Care Finance released legislation to cover the uninsured. The title of the bill is an Act Promoting Health Care; HB 4463. This legislation is the most comprehensive proposal put forward to date to cover the uninsured and deserves the support of the entire labor movement.
This legislation eliminates the surtax on employers that provide health insurance and places requirements on those employers and employees that do not participate in the health care system. Please take a moment to read the summary of this landmark legislation. Then please call and write your Representatives encouraging them to support House Bill 4463 and oppose any amendments that seek to weaken its funding or the coverage of the uninsured. A sample letter is included in this packet. The highlights of the HB 4463 legislation are: An Act Promoting Access to Healthcare (Redraft of H.2777) Summary: This bill contains a comprehensive plan for increasing health insurance coverage for all residents of
A) Commonwealth Health Insurance Connector The bill creates the Commonwealth Health Insurance Connector to link individuals and employers with health insurance products. It connects individuals and small businesses with health insurance products. The Connector certifies and offers products of high value and good quality. Individuals who are employed are able to purchase insurance using pre-tax dollars. The Connector allows for portability of insurance as individuals move from job to job, and permits more than one employer to contribute to an employee’s health insurance premium. The Connector is to be operated by the Group Insurance Commission and overseen by a separate, appointed Board of private and public representatives.
B) Insurance Market Reforms The bill merges the non- and small-group markets, a provision that will produce an estimated drop of 24% in non-group premium costs. The bill would also enable HMOs to offer coverage plans that are linked to Health Savings Accounts, reducing costs for those who enroll in such plans. Young adults would be able to stay on their parents’ insurance plans for two years past the loss of their dependent status, or until they turn 25 (whichever occurs first), and 19-26 year-olds would be eligible for lower-cost, specially designed products offered through the Connector. Finally, the bill would impose a moratorium on the creation of additional health insurance mandated benefits. 1 Joint Committee on Health Care Financing
C) Commonwealth Care Health Insurance Program The bill creates a subsidized insurance program called the Commonwealth Care Health Insurance Program. Individuals who earn less than 300% of the Federal Poverty Level (
D) MassHealth Expansion The bill expands MassHealth coverage for children, parents and childless adults. Currently, children in families up to 200% of the Federal Poverty Level (
This bill also provides MassHealth coverage for all childless adults up to 100%
The bill enhances outreach and enrollment for Medicaid-eligible families and individuals by providing support to community-based agencies for sustainable outreach programs. An additional $80 million is provided to increase Medicaid payment rates, while keeping within the budget neutrality limits of federal financing under the new Medicaid waiver. These rate increases are tied to performance goals of quality, efficiency, and improved outcomes for patients. The bill also creates a 2-year pilot program for smoking cessation treatment for MassHealth enrollees, and restores dental services that were cut in 2002.
E) Individual Investment in Health Care The bill provides that all residents of the Commonwealth shall maintain health insurance coverage. Individuals for whom there are not affordable products available will not be penalized for not having insurance coverage. A sliding scale schedule of affordability for insurance products will be set by the Board of the Connector.
Beginning in 2007,
F) Employer Contributions to a Healthy Workforce The bill eliminates the current $160 million Uncompensated Care Pool assessment on insurers and businesses. All businesses with more than 10 employees will make a contribution, based on their total payroll, to a new “Commonwealth Care Fund.” Businesses with 10 or fewer employees will be exempted from this contribution. Employers will receive a credit for their employee health expenses. Revenue from the assessment, along with other state and federal funds, will support the subsidized Commonwealth Care Health Insurance Program.
G) Reduction of Racial and Ethnic Health Disparities The bill aims to reduce racial and ethnic health disparities by requiring hospitals to collect and report on health care data related to race, ethnicity, and language. In addition, the bill creates a study of a sustainable Community Health Outreach Worker Program to target vulnerable populations in an effort to eliminate health disparities and remove linguistic barriers to health access.
H) Health Safety Net Fund The current Uncompensated Care Pool is eliminated by this legislation. The bill maintains the safety net by creating the Health Safety Net Fund to reimburse hospitals and community health centers for uncompensated care. Hospital reimbursements will be made using a new standard fee schedule, instead of the current charges-based payment system. The plan anticipates the transfer of funds to the Commonwealth Care Health Insurance Program as free care use declines.
I) Funding The plan leverages federal dollars to enhance and match state spending, and uses revenue generated by employer contributions to fund health insurance coverage. The bill applies tobacco settlement funds that the state receives each year toward health coverage for
This is legislation that we believe the labor movement must support by urging our Representatives to vote in favor of this bill. Again, please take a moment and call or email your legislator today and ask that they support HB 4463. |
