Hidden Costs in Commonwealth Care
Three recent publications focus on Massachusetts.
Massachusetts' major health insurers plan to raise premiums by about 10% next year, prompting many employers to reduce benefits and shift additional costs to workers, The Boston Globe writes. Increases will range from 7 to 12%, capping a decade of consecutive double-digit premium increases, according to a Globesurvey of the state's top health insurers.
Next, seven physician specialties in Massachusetts are operating under severe labor market conditions and the situation in primary care continues to weaken, according to the Massachusetts Medical Society's eighth annual Physician Workforce Study. The study also finds that the percentage of primary care practices closed to new patients is the highest it's ever been, as recorded by the Medical Society.
Finally, there is a hidden aspect of Massachusetts' Commonwealth Care program that may drive future costs far higher than originally projected, writes Craig Richardson, professor of economics at Winston-Salem State University. Embedded within the heavily subsidized program are several perverse incentives affecting firms and individuals. The program unintentionally gives incentives for smaller firms to discontinue health insurance so that their employees can sign up for cheaper state-subsidized care. Further, it gives incentives for employed individuals to earn less in order to qualify for higher benefits.
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