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Massachusetts’ Commonwealth Care in Trouble

Massachusetts’ Commonwealth Care may be looking at a gap in funding in its first year if enrollment continues.  The program provides low-cost health insurance to individuals earning up to 300% of the poverty line (about $31,000 for an individual).  Part of the problem is the success of the program in signing up the uninsured.  Currently, they have already signed up as many participants as expected for the entire fiscal year which ends on June 30, 2008.  At this rate, the funding gap could be as large as $147 million.

Alternatives for funding that gap are available.  Money from the Health Care Safety Net Trust Fund, which pays hospital and other medical bills for low income uninsured individuals, can be transferred into the Commonwealth Care budget.  However, hospital administrators worry such a move might leave them stuck with millions in unpaid medical bills.

Even if such actions provide the needed funds this year, some experts suggest the problem may be a sign of trouble for the program.  With health costs rising every year and reduced funding for the Health Care Safety Net Trust Fund next year, covering that gap may become increasingly difficult for Massachusetts.

 

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