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Elizabeth Cooney is a health reporter for the Worcester Telegram & Gazette.
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Thursday, May 10, 2007

Roadblock looms for subsidized insurance plan

By Alice Dembner, Globe staff

The chief financial officer for the Commonwealth Health Insurance Connector today said he was "a little concerned" that HealthNet, run by Boston Medical Center, would not meet a federal deadline to secure an insurance license by the end of June.

Patrick Holland today told members of the connector board that BMC hadn't provided the connector with information on its progress toward getting a license from the state Division of Insurance. That license requires proof of financial reserves, among other measures.

If HealthNet doesn't get the license, it could no longer provide coverage under the state-subsidized health insurance program. So far, HealthNet has enrolled about 40 percent of the nearly 70,000 people in the program. Three other plans enroll the remainder.

In a statement after the meeting, HealthNet executive director Jean Haynes, said the "BMC HealthNet Plan meets all applicable commercial HMO and National Association of Insurance Commissioners solvency requirements." She did not address whether the plan would meet the licensing deadline.

Later in the day, the plan released another statement: "BMCHP has always and will continue to meet all of the requirements of the Connector."

Posted by Karen Weintraub at 05:26 PM
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