« Wakes today for Foxy Lady shooting victims | Today | OSHA fines Fall River company for safety violations »

December 18, 2006

Lower-cost healthcare plan announced by state

Under a mandate from the General Assembly, the Office of the Health Insurance Commissioner today announced the outline of a lower-cost healthcare plan.

You may need to pay extra to see the doctor of your choice, and you’ll have to pursue “wellness initiatives” to avoid large out-of-pocket costs.

But if you don’t mind these rules, you’ll be able get health insurance averaging $314 a month for an individual.

That’s the essence of a landmark plan emerging today from the Office of the Health Insurance Commissioner, which is carrying out a law passed in the last legislative session.

Blue Cross and United are now required, starting in May, to offer a “wellness health benefit plan” that follows those rules to individuals and groups of 50 or less. The premiums can’t exceed 10 percent of prevailing wage, which will come out to about 20 percent lower than current premium costs.

Most low-cost plans keep their prices down by requiring high deductibles and co-pays and limiting benefits. This plan instead focuses on keeping people healthy and having limited networks of providers chosen by the insurer based on their quality.

Subscribers can get lower deductibles if they sign a “wellness pledge” that may include promising to try to lose weight or quit smoking. The plan was developed by a committee of employers, subscribers, brokers, consumer advocates and union leaders.

But whether these measures will save enough money in medical costs to keep the insurers in the black remains to be seen.

-- Journal staff writer Felice J. Freyer

Posted by Steve Peoples  at 1:32 PM | Permalink

Comments

Post a comment

Please be civil. Vicious comments, personal attacks and profanity won't be published. Name and email are required; email address will not publish.

Name:

Email Address:

URL:
Remember Me? YesNo

Comments: (you may use HTML tags for style)