Health Plan Rates too high according to Senator

Massachusetts wants to charge low-income residents too much for health insurance coverage, says state Senator Richard T. Moore.

In a letter to the Commonwealth Health Insurance Connector Authority, which is overseeing implementation of the law, Moore questions whether the proposed health insurance rates reflect the intent of the Legislature when it crafted a compromise reform bill in the spring.

The law requires all Massachusetts residents to have health insurance starting next year, but the state will subsidize premiums for residents who earn up to three times the federal poverty level, or about $60,000 for a family of four.

Moore's letter comes in advance of a meeting of the connector authority scheduled for tomorrow at which the board is expected to vote on the proposed rates. There will also be a hearing for public comment, probably in October, before the insurance rates are made final.

If rates are too high, as Moore suggests, some fear healthy low-income residents won't buy health insurance coverage. At the same time, if too many residents who require expensive medical care sign on it could drive up healthcare reform costs .

But there also are potential problems if rates are too low. For example, low-income residents who currently pay for health insurance at market rates through their employers might be tempted to instead sign up for subsidized coverage through the state.