Business
July 8, 2007
The state has certified the six providers to offer residents a wide variety of plans. Middle-aged people may have have 20 or 25 plans available to them.
The plans are grouped into three levels - Bronze, Silver and Gold - with ascending scales of premiums and benefits.
The premiums offered under the Choice plans are very specific, and depend on a person's age, occupation and residence.
For example, a 30-year-old who lives in North Andover who works in a convenience store will pay anywhere from $146 to $436 a month for coverage depending on the level of coverage, co-pay amounts and deductibles.
The providers also offer special young adult plans for individuals ages 19 to 26. These are significantly cheaper than the other plans but have less generous benefits.
Cathy Ronan, a Lowell elementary school principal, said she hasn't paid much attention to the new law since she's already insured.
But she is concerned for her 24-year-old son Matthew, who is no longer insured as a student, Ronan said. Her son broke his elbow in the spring when he was still insured. If he hadn't been, he would have been stuck with medical bills of $10,000 to $15,000, Ronan said.
"That's something you don't realize coming out of school, how important insurance is," she said.
Impact on business
The health care reform probably affects business owners more than anyone else in the state.
The new law requires them to select a health insurance plan, offer it to their employees, pay a portion of their employees' premiums and fill out paperwork detailing the new arrangements.
Dagmar Reineke, office manager of Wall's Lincoln-Mercury dealership in Methuen, has only just started to learn about the process, which she suspects will be an "administrative nightmare."
"It's obviously, for the employer, a lot of work," Reineke said.
She is using a broker who specializes in helping businesses through the maze of new regulations, but the broker hasn't been able to answer many of her questions, Reineke said
Jeanne Colachico, a human resources lawyer in North Andover, is advising local businesses on the new law. Colachico said she thinks part of the problem is that the state has not finalized all aspects of the plan and that different agencies have "various pieces of the puzzle."
"The most significant impact will be on small businesses," she said. "Most small businesses have never had to deal with this before."
In fact, until now, businesses were never required to offer health insurance benefits, and many small businesses still don't. The new law now requires them to work with government agencies, file paperwork and, most importantly, pay expenses they never had to in the past.
About 98 percent of all businesses with more than 100 employees offer health insurance benefits. But only 65 percent of businesses with fewer than 50 employees offer benefits.
Long road ahead
Many businesses - and many of the consultants advising businesses - are still hazy on the details, and even some of the basics.
For example, the definition of a full-time employee differs throughout the legislation. In some places it is defined as a person who works 35 hours a week. In other places the number is 40 hours.
Seemingly small inconsistencies like that make a big difference to small businesses with approximately 11 full-time employees.
And it gets even trickier. Technically, the law applies to businesses with 11 or more full-time equivalent employees. In other words, seasonal businesses with many part-time employees may be affected.
Colachico said seasonal restaurants and landscaping firms are usually the most upset by the new regulations.
Under the new law, businesses have to either contribute to the cost of premium for their employees or pay the state $295 per employee per year.
"We think it's incredibly inadequate," said Lisa Howe, a consumer health policy coordinator at Health Care For All, about the penalty fee. It was one of many compromises to get the bill passed, she said.
The road to universal healthcare throughout Massachusetts will be long and difficult, Howe said.
"But everyone has a responsibility," she said.
Uninsured have six months to figure out health care law
Massachusetts health care changed forever last week, for better or worse, although for many the change doesn't mean much - yet.
All Massachusetts residents are now required to have health insurance, and all businesses with 11 or more full-time employees are required to offer their employees' a health insurance plan.
The law took effect July 1, but those who haven't been paying attention can relax for now. The state is granting a grace period until the end of the year so that penalties don't kick in until Dec. 31. After that, residents who failed to get insurance will lose their personal income tax emption - worth $219 - for this year.
That's the good news. The bad news is that individuals and businesses may need the next six months to wade through the perplexing process.
Under the new law, uninsured residents must get health insurance through one of two programs, depending on annual income.
The state has a subsidized program called Commonwealth Care for people making less than a set amount, based on federal poverty guidelines.
With the help of four health care providers, the state offers a range of affordable plans that become cheaper but less comprehensive for lower- and moderate-income individuals.
For example, a person who makes less than $15,315 will pay no premium, while someone earning less than $30,360 will pay $105 a month. Family plans are also on a sliding scale, ranging from no premiums for those earning less than $25,755, to monthly premiums of $140 for families making $35,000 for $43,000 a year.
Even at these lower rates, some people are concerned that mandatory health insurance is an unnecessary and unfair burden.
Chris Stanton of Gloucester said he's insured through his workplace, One Stop Business Centers of Burlington. But several friends with low-paying jobs and no insurance are not happy with the new mandate, he said.
"It's hard for them to pay for it," Stanton said. "They're forced into something that in some cases they can't afford."
Lots of choices
Anyone who isn't eligible for the subsidized program must find insurance through Commonwealth Choice. And there are plenty of choices. Six companies are offering plans, but only two offer coverages in all regions of the state.
All Massachusetts residents are now required to have health insurance, and all businesses with 11 or more full-time employees are required to offer their employees' a health insurance plan.
The law took effect July 1, but those who haven't been paying attention can relax for now. The state is granting a grace period until the end of the year so that penalties don't kick in until Dec. 31. After that, residents who failed to get insurance will lose their personal income tax emption - worth $219 - for this year.
That's the good news. The bad news is that individuals and businesses may need the next six months to wade through the perplexing process.
Under the new law, uninsured residents must get health insurance through one of two programs, depending on annual income.
The state has a subsidized program called Commonwealth Care for people making less than a set amount, based on federal poverty guidelines.
With the help of four health care providers, the state offers a range of affordable plans that become cheaper but less comprehensive for lower- and moderate-income individuals.
For example, a person who makes less than $15,315 will pay no premium, while someone earning less than $30,360 will pay $105 a month. Family plans are also on a sliding scale, ranging from no premiums for those earning less than $25,755, to monthly premiums of $140 for families making $35,000 for $43,000 a year.
Even at these lower rates, some people are concerned that mandatory health insurance is an unnecessary and unfair burden.
Chris Stanton of Gloucester said he's insured through his workplace, One Stop Business Centers of Burlington. But several friends with low-paying jobs and no insurance are not happy with the new mandate, he said.
"It's hard for them to pay for it," Stanton said. "They're forced into something that in some cases they can't afford."
Lots of choices
Anyone who isn't eligible for the subsidized program must find insurance through Commonwealth Choice. And there are plenty of choices. Six companies are offering plans, but only two offer coverages in all regions of the state.
The state has certified the six providers to offer residents a wide variety of plans. Middle-aged people may have have 20 or 25 plans available to them.
The plans are grouped into three levels - Bronze, Silver and Gold - with ascending scales of premiums and benefits.
The premiums offered under the Choice plans are very specific, and depend on a person's age, occupation and residence.
For example, a 30-year-old who lives in North Andover who works in a convenience store will pay anywhere from $146 to $436 a month for coverage depending on the level of coverage, co-pay amounts and deductibles.
The providers also offer special young adult plans for individuals ages 19 to 26. These are significantly cheaper than the other plans but have less generous benefits.
Cathy Ronan, a Lowell elementary school principal, said she hasn't paid much attention to the new law since she's already insured.
But she is concerned for her 24-year-old son Matthew, who is no longer insured as a student, Ronan said. Her son broke his elbow in the spring when he was still insured. If he hadn't been, he would have been stuck with medical bills of $10,000 to $15,000, Ronan said.
"That's something you don't realize coming out of school, how important insurance is," she said.
Impact on business
The health care reform probably affects business owners more than anyone else in the state.
The new law requires them to select a health insurance plan, offer it to their employees, pay a portion of their employees' premiums and fill out paperwork detailing the new arrangements.
Dagmar Reineke, office manager of Wall's Lincoln-Mercury dealership in Methuen, has only just started to learn about the process, which she suspects will be an "administrative nightmare."
"It's obviously, for the employer, a lot of work," Reineke said.
She is using a broker who specializes in helping businesses through the maze of new regulations, but the broker hasn't been able to answer many of her questions, Reineke said
Jeanne Colachico, a human resources lawyer in North Andover, is advising local businesses on the new law. Colachico said she thinks part of the problem is that the state has not finalized all aspects of the plan and that different agencies have "various pieces of the puzzle."
"The most significant impact will be on small businesses," she said. "Most small businesses have never had to deal with this before."
In fact, until now, businesses were never required to offer health insurance benefits, and many small businesses still don't. The new law now requires them to work with government agencies, file paperwork and, most importantly, pay expenses they never had to in the past.
About 98 percent of all businesses with more than 100 employees offer health insurance benefits. But only 65 percent of businesses with fewer than 50 employees offer benefits.
Long road ahead
Many businesses - and many of the consultants advising businesses - are still hazy on the details, and even some of the basics.
For example, the definition of a full-time employee differs throughout the legislation. In some places it is defined as a person who works 35 hours a week. In other places the number is 40 hours.
Seemingly small inconsistencies like that make a big difference to small businesses with approximately 11 full-time employees.
And it gets even trickier. Technically, the law applies to businesses with 11 or more full-time equivalent employees. In other words, seasonal businesses with many part-time employees may be affected.
Colachico said seasonal restaurants and landscaping firms are usually the most upset by the new regulations.
Under the new law, businesses have to either contribute to the cost of premium for their employees or pay the state $295 per employee per year.
"We think it's incredibly inadequate," said Lisa Howe, a consumer health policy coordinator at Health Care For All, about the penalty fee. It was one of many compromises to get the bill passed, she said.
The road to universal healthcare throughout Massachusetts will be long and difficult, Howe said.
"But everyone has a responsibility," she said.
- Business
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