State Pays $212.6 Million in Health Care to Workers

February 02, 2006

An updated state-issued report released Wednesday estimates public health assistance programs covered $212.6 million worth of care to 160,000 working people and their dependents during the period July 1, 2004 through June 30, 2005. This contrasts with a 2005 report that detailed $52 million in costs, however, "methodological improvements" in this year's report make comparisons impossible. The report found that some of the employers whose employees used public programs offered subsidized health insurance plans, but employees opted for government health care programs instead.

"As the system currently exists, it is a very logical decision on their part, but also one that demonstrates a broken healthcare system," Health and Human Services Secretary Timothy Murphy said in a statement. "We need to ensure that both employers and employees act responsibly." Other workers who needed public programs are employed at jobs where health insurance is not available.

Murphy said 97 percent of Massachusetts firms with more than 50 employees offer subsidized health insurance plans to their employees, but many part- time employees are not offered access to employer insurance plans. Three important points should be made about the study; 1) the number of UCP users reporting a valid employer was only 36% (64% of UCP users did not identify an employer and therefore their costs were not included in the report totals,) 2) employer-sponsored health insurance does not preclude eligibility for public programs and 3) DHCFP was unable to verify whether employers on the list offered health insurance to their employees but relied on estimates.

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