Published: Monday, October 12, 2009
State's subsidized insurance rates will go up soon
The state sent out letters about the increase. Enrollees must decide if they can afford to keep the insurance.
OLYMPIA — Thousands of Snohomish County residents are starting to learn how much more they must pay to keep state-subsidized health insurance in 2010.
Soon they must decide whether they can afford the increase.
Letters mailed Friday alerted 84,000 enrollees in the Basic Health Plan, including 6,001 in the county, of the planned hike in monthly premiums taking effect Jan. 1.
Individuals and families living below the federal poverty level will be charged $34 a month per person, twice the current rate. A family of four with an income double the federal poverty level will pay $200 a person, up from $135. Overall, the average monthly payment per person will rise from $34.20 to $59.73.
Also, the state is raising the annual deductible from $150 to $250.
While no eligible person will be booted off the Basic Health Plan, the state expects — and is counting on for budget reasons — an exodus of enrollees unable to pay the higher premiums and deductible.
There are signs this reality is beginning to set in.
At Community Health Plan of Washington, which serves the largest number of program participants, customer representatives have heard a bit of “desperation” in the voices of clients unsure what they will do, said David Kinard, director of marketing and corporate communications.
“I think you’ll see some parents taking some risk and rolling the dice and hope it pays off,” he said. One strategy, he said, might be for adults to reduce their personal coverage in order to ensure their children don’t lose out at all.
“To make somebody choose seems contrary” to the purpose behind creating the program, he said.
The Basic Health Plan provides access to health insurance for low-income Washington residents. Enrollees pay a monthly premium based primarily on income, though age and residency are also factors.
Early last week, some of those coming to clinics run by Community Health Center of Snohomish County knew what they’d be facing and had been contemplating what to do to stay in the program, said executive director Ken Green.
“We’ve not seen much backlash yet. People aren’t real happy about it but they seemed to know it was going to happen,” he said.
Spokespeople for the Providence Everett Healthcare Clinic, as well as clinics in Marysville and Monroe run by Sea Mar Community Health Centers, said there had been negligible response from clients about changing rates last week.
Officials at the clinics and at Community Health Plan and Group Health, the firms providing coverage for enrollees in Snohomish County, expect emotions will soar among clients when actual bills containing higher charges arrive in mid-November.
These higher premiums are a result of the Legislature and Gov. Chris Gregoire cutting 43 percent of the program’s funding to help close a $9 billion shortfall in the state budget.
While increases will generate a bit of money, most of the lost revenue is offset by trimming up to 40,000 people from the rolls by early 2010.
The agency is on pace to do so.
Since May, statewide enrollment has dropped from nearly 100,000 to 83,865. In the same period, Snohomish County enrollment fell from 7,066 to 6,001. Of those, 3,741 people are covered through Community Health Plan of Washington and 2,360 through Group Health.
As enrollment tumbles, the waiting list grows. It was up to 66,000 last week, nearly double the May level.
Jerry Cornfield: 360-352-8623, jcornfield@heraldnet.com
Calculating the cost
Basic Health Plan enrollees can figure the cost of their 2010 premiums through a chart posted on the Washington Health Care Authority Web site at http://tinyurl.com/ygxcbma.
Soon they must decide whether they can afford the increase.
Letters mailed Friday alerted 84,000 enrollees in the Basic Health Plan, including 6,001 in the county, of the planned hike in monthly premiums taking effect Jan. 1.
Individuals and families living below the federal poverty level will be charged $34 a month per person, twice the current rate. A family of four with an income double the federal poverty level will pay $200 a person, up from $135. Overall, the average monthly payment per person will rise from $34.20 to $59.73.
Also, the state is raising the annual deductible from $150 to $250.
While no eligible person will be booted off the Basic Health Plan, the state expects — and is counting on for budget reasons — an exodus of enrollees unable to pay the higher premiums and deductible.
There are signs this reality is beginning to set in.
At Community Health Plan of Washington, which serves the largest number of program participants, customer representatives have heard a bit of “desperation” in the voices of clients unsure what they will do, said David Kinard, director of marketing and corporate communications.
“I think you’ll see some parents taking some risk and rolling the dice and hope it pays off,” he said. One strategy, he said, might be for adults to reduce their personal coverage in order to ensure their children don’t lose out at all.
“To make somebody choose seems contrary” to the purpose behind creating the program, he said.
The Basic Health Plan provides access to health insurance for low-income Washington residents. Enrollees pay a monthly premium based primarily on income, though age and residency are also factors.
Early last week, some of those coming to clinics run by Community Health Center of Snohomish County knew what they’d be facing and had been contemplating what to do to stay in the program, said executive director Ken Green.
“We’ve not seen much backlash yet. People aren’t real happy about it but they seemed to know it was going to happen,” he said.
Spokespeople for the Providence Everett Healthcare Clinic, as well as clinics in Marysville and Monroe run by Sea Mar Community Health Centers, said there had been negligible response from clients about changing rates last week.
Officials at the clinics and at Community Health Plan and Group Health, the firms providing coverage for enrollees in Snohomish County, expect emotions will soar among clients when actual bills containing higher charges arrive in mid-November.
These higher premiums are a result of the Legislature and Gov. Chris Gregoire cutting 43 percent of the program’s funding to help close a $9 billion shortfall in the state budget.
While increases will generate a bit of money, most of the lost revenue is offset by trimming up to 40,000 people from the rolls by early 2010.
The agency is on pace to do so.
Since May, statewide enrollment has dropped from nearly 100,000 to 83,865. In the same period, Snohomish County enrollment fell from 7,066 to 6,001. Of those, 3,741 people are covered through Community Health Plan of Washington and 2,360 through Group Health.
As enrollment tumbles, the waiting list grows. It was up to 66,000 last week, nearly double the May level.
Jerry Cornfield: 360-352-8623, jcornfield@heraldnet.com
Calculating the cost
Basic Health Plan enrollees can figure the cost of their 2010 premiums through a chart posted on the Washington Health Care Authority Web site at http://tinyurl.com/ygxcbma.
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