Connector to delay New Health Care Reform Law

March 21, 2007

The Connector Authority voted yesterday to delay the full implementation of the new health care reform law for 18 months, giving residents until Jan. 1, 2009 to meet the board's minimum coverage standards, which include prescription drugs. Under the board's decision today, individuals are still required to have health insurance by July 1, 2007 or face financial penalties.

Business leaders and health insurance officials, in a letter unveiled Monday night, asked the Connector to start requiring employees to comply with the minimum standards by July 1, 2009. Signed by officials representing groups such as the Massachusetts Food Association, New England Convenience Store Association, Greater Boston Chamber of Commerce, Neighborhood Health Plan, Harvard Pilgrim Health Care and Tufts Health Plan, the letter also expressed concerns relative to capping out of pocket maximums and annual deductibles as well as mandating drug coverage.

While the board is slated to hold public hearings on the minimum standards in May and take a final vote in June, the vote today came after the staff refined its recommendations to include:

• Mandating prescription drug coverage.


• Allowing caps on lifetime maximum benefits.


• Exempting federally-approved health savings plans from complying with the minimum standards.


• Capping annual deductibles at $2,000 for an individual and $4,000 for families.


• Capping maximum out-of-pocket spending for in-network services at $5,000 for individual coverage and $10,000 for family coverage.


• Capping separate deductibles for drug coverage not to exceed $250 for individuals and $500 for family policies.


• Providing preventive and primary care, emergency services, hospitalization benefits, ambulatory patient services and mental health services.

Board Chairwoman Leslie Kirwan told members that the board is committed to making improvements once they see how the market and individuals responds to the new law.

The president of the Greater Boston Interfaith Organization led a group rallying for the board to phase-in the penalty for the uninsured. Rev. Hurmon Hamilton of Roxbury Presbyterian Church pointed out that the Connector's decision helped out the business community and asked "If you have to do that for companies, why can't you do it for individuals?"

Asked about providing the uninsured an extension to readjust to the change of the law, Kirwan said issues around affordability and waivers will be addressed in coming meetings.

Please feel free to e-mail any questions, comments or concerns. We will continue to update you as more information becomes available.

Back to Headlines

Healthcare Financial, Inc. is a one of the top resources for information on healthcare changes in Massachusetts.

Stay informed - Please sign up to receive our Industry Update emails.