Massachusetts' model for health care reform: Transferability to the state of Connecticut

In April 2006, Massachusetts passed a landmark health care reform law that mandates insurance coverage through individual and employer provisions, reforms the insurance market and provides government subsidies to the cost of health care for poor and low-income residents. In this paper I evaluate the law's key provisions and assess the transferability of the Massachusetts model to the state of Connecticut.

The Massachusetts plan seeks to cover 95% of the state's uninsured residents within three years by subsidizing coverage for the uninsured, enrolling all persons eligible for Medicaid, and addressing inefficiencies in the health insurance system. The law creates an Insurance Connector that administers lower-cost insurance plans for small businesses, merges small and non-group markets, and allows individuals to purchase insurance with pretax dollars and keep their coverage when they change jobs.

The Massachusetts law presents a model by which to evaluate the feasibility of implementing similar reforms in another state. In this case, the state of Connecticut provides a platform for analysis. This paper compares the two states' percentages of uninsured residents, Medicaid eligibility requirements, insurance plan rating systems, and access to funding. Ultimately, there are useful lessons that Connecticut and other states can learn from Massachusetts in approaching their own reform efforts, particularly in regards to the employer mandate and insurance market reforms. The Massachusetts model merits consideration by states looking to cover to the uninsured and address inefficiencies in the insurance market.