Massachusetts Care: Whoops

With its individual health insurance mandate, “play-or-pay” mandate on businesses (either provide employees health insurance or pay a tax), and expanded government funding, Massachusetts’ health care package passed in 2006 has been something of a model for those advocating more government involvement in health care at the national level.

But now comes the following news, as reported in the July 15 New York Times:

The new state budget in Massachusetts eliminates health care coverage for some 30,000 legal immigrants to help close a growing deficit, reversing progress toward universal coverage just as Congress looks to the state as a model for overhauling the nation’s health care system. The affected immigrants, permanent residents who have had green cards for less than five years, are now covered under Commonwealth Care, a subsidized insurance program for low-income residents that is central to the groundbreaking health care law enacted here in 2006…

In addition to dropping the immigrant insurance program, Commonwealth Care will save an estimated $63 million by no longer automatically enrolling low-income residents who fail to enroll themselves.

What can be said? Whoops.

Maybe more government involvement in health care – including mandates and more spending – isn’t such great ideas after all.

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council