Mass Governor Asks Blue Cross to Keep Higher Employer Contribution

At the request of Governor Deval L. Patrick (D-MA), the state's largest health insurer, Blue Cross and Blue Shield of Massachusetts, scrapped a new policy that would have allowed owners of small businesses to contribute just one-third of the cost of their employees' health plan premiums.  Blue Cross is the state's largest health insurer with about 3 million members.

Prior to 1 July, Blue Cross required a minimum 50 percent contribution to premiums from employers with 50 or fewer workers.  The average contribution by Massachusetts employers is about 75 percent.

On 1 July, Massachusetts's healthcare reform law took effect, under which, if a company does not offer health insurance, low income works can receive subsidized coverage under the state's Commonwealth Care plan.  They are ineligible for assistance, however, if their employer offers a company health plan, regardless of the company's contribution to premiums.

Company's not offering health insurance to their employees or contributing less than what the state deems "fair and reasonable" toward their employees' health plan premiums are required to pay an annual fee of $295 per employee.

Harvard Pilgrim Health Care, the state's second largest health insurer with about 1 million members, has said that the insurer will retain its 50 percent contribution after earlier reviewing its policies as a result of Blue Cross's lowering its minimum contribution to 33 percent.■

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Good action by Governor Deval Patrick.