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Cost of Massachusetts Health Insurance Mandate to Rise 85% -- $400 Mil -- in '09; CA Mandate Proposal Certain to Face Similar Increases
Date:1/24/2008

ensive than the Speaker and Governor's projections. FTCR called that a likely scenario given that nothing in the bill adequately limits premium increases by insurers and, as the Legislative Analyst contends, Speaker Nunez's cost projections are likely too low.

"The Speaker's mandatory health insurance scheme has no provision for inevitable increases in premium costs, and he has purposely low-balled the number of uninsured to make the numbers add up. The funding's just not there. When state financing fails, more of the cost burden will be borne by California families," said Carmen Balber with FTCR. "Massachusetts' mistakes should be informing the California debate, instead proponents are trying to sweep them under the rug."

Cost increases in Massachusetts are relevant to California, said FTCR, because they stem not from the plan's funding source (which differs between the states) but on assumptions about the health insurance market and the uninsured. Both states underestimated the number of uninsured when projecting costs, and the double-digit increases in the cost of health coverage that are projected in Massachusetts are another probability not considered by proponents of the California plan.


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SOURCE Foundation for Taxpayer and Consumer Rights
Copyright©2008 PR Newswire.
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