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Elizabeth Cooney is a health reporter for the Worcester Telegram & Gazette.
Boston Globe Health and Science staff:
Karen Weintraub, Deputy Health and Science Editor, and Gideon Gil, Health and Science Editor.
Short White Coat blogger Ishani Ganguli
Short White Coat blogger Jennifer Srygley
Thursday, July 12, 2007
Financial problem averted for health insurance plan
By Alice Dembner, Globe Staff
All four of the companies running new subsidized health insurance plans have agreed to a contract extension that will pay them 4 percent more per enrollee, state officials announced today.
The agreement, which will cost the state about $16 million more, averts a potential budget crunch that had state officials worried. Some of the companies had been asking for significantly more money.
The companies currently serve about 92,000 low-income residents in the Commonwealth Care program and are working to enroll thousands more. The contracts now run through the end of fiscal 2008.
Patrick Holland, chief financial officer for the Commonwealth Health Insurance Connector Authority, said he was confident that they would be licensed by the end of 2007, about six months after the federal deadline.
The other two plans, Neighborhood Health Plan and Fallon Community Health Plan, are already licensed.