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« Connector counts 27,000 newly insured people | Main | Prescription drug requirement to get more review »

Thursday, July 12, 2007

Financial problem averted for health insurance plan

By Alice Dembner, Globe Staff

All four of the companies running new subsidized health insurance plans have agreed to a contract extension that will pay them 4 percent more per enrollee, state officials announced today.

The agreement, which will cost the state about $16 million more, averts a potential budget crunch that had state officials worried. Some of the companies had been asking for significantly more money.

The companies currently serve about 92,000 low-income residents in the Commonwealth Care program and are working to enroll thousands more. The contracts now run through the end of fiscal 2008.


The two companies that have enrolled the lion’s share of new insurees – Boston Medical Center HealthNet Plan and Network Health – also have yet to secure licenses from the state Division of Insurance, which are required by the federal government.

Patrick Holland, chief financial officer for the Commonwealth Health Insurance Connector Authority, said he was confident that they would be licensed by the end of 2007, about six months after the federal deadline.

The other two plans, Neighborhood Health Plan and Fallon Community Health Plan, are already licensed.

Posted by Karen Weintraub at 02:02 PM
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