Gov: Biz Fees for Mass. Health Care May Rise

By JAY FITZGERALD

Hundreds of businesses may be hit up for more money due to the escalating costs of the state's new universal health-care system.

Gov. Deval Patrick yesterday refused to rule out a possible increase in the $295 annual assessment some firms have to pay per employee for the new Commonwealth Care program.

Patrick said the landmark program is a victim of its own success in some ways, because so many more uninsured people have signed up than anticipated.

As of March 31, about 176,000 people have joined the subsidized health-insurance program, far more than anticipated at this point.

The state has already estimated that the projected $869 million cost of Commonwealth Care for next fiscal year may have to be revised upward yet again due to the continuing influx of people into the program.

Though officials don't have a handle yet on exactly how much of a deficit Commonwealth Care might be running, some have estimated it at about $150 million.

Patrick, whose staff has been holding top-level meetings on the issue, said discussions are under way on a wide variety of ways to close the funding gap.

Asked by a reporter whether the state might increase assessments for businesses, Patrick said, "Everything is on the table."

Under the current law, firms that have 11 or more employees and don't provide them insurance must kick in $295 per worker each year to Commonwealth Care.

One source said it's "likely" that figure might have to be increased, though the assessment currently impacts only 750 firms and raises $6.5 million a year. "It's not going to solve the problem, but it will help," said the source, of raising the assessment fee.

Patrick made his remarks yesterday after an event at South Station to promote the state's new Web site to help consumers understand the new auto insurance system that takes effect April 1.

Patrick urged consumers to visit the site - at www.mass.gov/ autorates - in order to prepare for the new "managed competition" insurance system.

CAPTION: LOOK AT THIS: With State Rep. Ron Mariano (D-Quincy) in the background, Gov. Deval Patrick peers at the Division of Insurance's Web site that explains to consumers the new state auto insurance system that takes effect April 1. At the same South Station event, Patrick also talked about state budget issues. STAFF PHOTO BY MIKE ADASKAVEG

Originally published by By JAY FITZGERALD.

(c) 2008 Boston Herald. Provided by ProQuest Information and Learning. All rights Reserved.

Car Insurance News: Gov: Biz Fees for Mass. Health Care May Rise...Get an auto insurance quote!