Two years ago lawmakers in Massachusetts made the state the first in the nation to mandate that residents purchase health insurance. The proposal quickly caught on, inspiring similar efforts on the state level and eventually becoming the blueprint for the national health reform efforts of Democratic presidential candidates Sen. Barack Obama and New York Sen. Hillary Rodham Clinton.
More than a year into the experiment the first returns are in. And reviews are mixed. Not surprisingly, the program is costing far more than backers had initially predicted. On the other hand, the ranks of the uninsured in the state have dropped sharply. (See Matthew’s podcast with Jon Kingsdale, executive director of the Massachusetts Connector, the agency created to administer the program, for more on the back story.) The Massachusetts experiment is clearly not something to be dismissed — nor is it something to
defend for the sake of argument.
In brief, the Massachusetts health care reform law appears on its way to:
- Covering two-thirds of those who did not have health insurance on the day it was enacted — about 400,000 people by the end of 2009.
- Covering most of those who were uninsured in households with incomes below 300 percent of the federal poverty level–below which the plan pays all or most health insurance premiums.
- Offering health insurance plans to middle-income people that are still largely unaffordable for those families making less than $110,000 a year –– people for whom the state has generally canceled the individual mandate that they must buy coverage.
- Racking up costs well above what was first estimated. The plan looks to be coming in 38 percent higher than originally estimated for its first year and the Governor is now estimating second year costs 50 percent higher than the original estimate –– from $725 million to $1.1 billion for the 2008-2009 fiscal year.
- Developing an annual cost trend for the program’s insurance programs, Commonwealth Care and Commonwealth Choice, in the 10 percent to 15 percent range.
So, lots more people, particularly lower-income residents, are covered but the program’s costs are unsustainable.


implementation was achieved in 1999. In a time of sky rocketing health care costs, VA care has 