Friday, March 21, 2008

Stupid Government Tricks

[Welcome Industry Radar readers!]

Seems the folks in Massachusetts are at it again. So much so we just had to blog on it. They are such an easy target . . .

The state's new subsidized health insurance program will cost "signficantly" more than the $869 million proposed in the governor's FY2009 budget just two months ago, the state's top financial official said today.


In case you missed it, the Massachusetts plan has been a favorite target at InsureBlog. You can find our refresher course by clicking here.

The budget gap looms despite steps taken today to hold down state costs -- approval of a tough contract with insurers, and increased premiums and copayments for about half of the 176,000 people enrolled.

Budget shortfalls in spite of increased premiums and copays.

The premiums will go up 10 percent on average. For example, people with incomes between $21,000 and $26,000 who are now paying $70 per month, will pay $77

$77 per month. About $2.50 per day. Yeah, I can see how this is a burden.

This is what happens when lawyers decide to meddle in something where ignorance of the dynamics of risk management is rampant.
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