Washington's basic health plan raises rates to compensate for budget cuts

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Washington state's cash-strapped health insurance program, Basic Health Plan, "is resorting to steep premium increases to achieve what [its officials] were loath to do on their own - expel thousands of working-class people," the Seattle Times reports.

Price hikes for the poorest plan members - who earn less than 125 percent of the poverty line - could double their premiums, while spikes are expected to be much higher for members with bigger incomes.

"Officials are hoping that boosting premiums will prod 7,000 to 17,000 member to leave the plan on their own, sparing the state the need to kick off people involuntarily," the Times reports. "At least [premium increases] will give these families a choice," said Steve Hill, the plan administrator (Song, 6/9).

However, after recent state budget cuts, the plan, with 100,000 enrollees, will have to shed as many as 35,000 to remain sustainable, the Associated Press reports. Other options - aside from just booting people off the rolls -- include shifting about 8,000 eligible plan members to the state's Medicaid program, meaning Washington would pick up part of their tab (Woodward, 6/8).


Kaiser Health NewsThis article was reprinted from khn.org with permission from the Henry J. Kaiser Family Foundation. Kaiser Health News, an editorially independent news service, is a program of the Kaiser Family Foundation, a nonpartisan health care policy research organization unaffiliated with Kaiser Permanente.

Comments

  1. Milo Milo United States says:

    Woodward -

    "Other options - aside from just booting people off the rolls -- include shifting about 8,000 eligible plan members to the state's Medicaid program, meaning Washington would pick up part of their tab"

    While it is true that it may well be harder for the lower income currently enrolled members of the BHP to afford increased monthly premium amounts, it is also true that the BHP premium rate structure increases steeply on a percentage basis of income as income levels increase.

    5000 members are presently receiving Medicaid benefits in addition to being members of the BHP (and their disenrollment letters were sent out on Monday, June 8, 2009). Around 3000 may (or may not) qualify for Medicaid. The Health Care Authority does not presently know the surrounding facts in these cases.

    Aside from the medicaid disenrollments, and attrition from voluntary disenrollments projected, ALL of the other of the total of 5 options considered by the HCA would have involved "just booting people off the rolls" ...

    While I agree (and have proposed such as a second tier option if necessary) the possibility of lowering the maximum income level in order to retain eligibility, please note that "booting" (ANY currently enrolled BHP members) "off the rolls" would have represented the greatest "moral hazard".

    However, if it (would unfortunately) become necessary, disenrolling those members with the highest incomes is the (next) lesser of this set of proposed evils.

    Note, however note that addressing the HCA budget dilemma with an approach that exclusively would have disenrolled current BHP members earning over 125% of the federally determined poverty level (as opposed to the current 200% level) would have necessitated the disenrollment of 9000 *more* current members (over and above the 36000 number projected) in order for the HCA to operate within budget. See the HCA's own document available at:

    seattletimes.nwsource.com/.../2009282014.pdf

    Therefore, it appears to be no easy matter for any pragmatist to address the unfortunate situation requested by Governor Gregoire, and reduced to practice by the State Legislature in their recent 2009 session. What would *you* do?
    .

The opinions expressed here are the views of the writer and do not necessarily reflect the views and opinions of News Medical.
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