Dec 17
Vermont Moves to Support Private Health Insurance
More and more working Americans are turning to government-sponsored health insurance programs of one sort or another, simply because the health coverage offered through their employers is too expensive. Many states have created a ’second’ safety net for working citizens with modest incomes for health coverage. This support comes in the form of government run clinics, subsidized coverage for children, and other programs that put some sort of health coverage within reach of working families with low incomes.
In Vermont, legislation passed this year contained provisions that are expected to move a projected 1,068 Vermonters off of government insurance programs and onto private, employer-sponsored plans. Effective next October, the state will begin offering subsidies to workers whose employers offer health insurance plans that require employee contributions.
The program would subsidize the employee contributions, with the goal of not increasing costs to the worker. If the subsidies cost more than keeping the worker on Vermont’s Medicaid-affiliated health program, the worker would stay on the state program.
Lawmakers appropriated $1 million to launch the program to get people to switch to employer-backed health care. The pilot program will provide a testing ground for the concept. The change is expected to reduce state and federal health outlays by $6.1 million a year, but is also expected to add about $5.8 million in new costs for employers. It should be noted that those costs are benefits that the employers have offered to employees but which have not been utilized.
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December 17th, 2007 at 7:27 pm
It\’s great that states are putting out plans and ideas, but won\’t it be confusing when one state does it one way, and another state a different way? I think we should just have a federal solution if we move toward a more goverment-centered system.
December 27th, 2007 at 8:33 pm
I think it\’s great that they are taking the bull by the horns, and don\’t find the potential for multiple insurance ideas to be a confusing one. In fact, having a decent health care plan could be a good way for states to lead people to want to move there! In this case, though, Vermonters are simply trying to help move people back onto employer-based coverage, anyway.
Jerry
http://www.leads4insurance.com