Patrick Administration Issues Annual Report on Employers with 50 or More Employees on Public Health Insurance

BOSTON — The Patrick Administration today released the state’s fifth annual report identifying employers with 50 or more employees using publicly-funded health insurance programs. The report, delivered to the Legislature by the Executive Office of Health and Human Services, reflects employee use of MassHealth, Commonwealth Care and the Uncompensated Care Pool/Health Safety Net during the state’s Fiscal Year 2008.

“This report demonstrates both the success we have had with health care reform and the important challenges ahead,” said Secretary of Health and Human Services Dr. JudyAnn Bigby. “Massachusetts now has the lowest uninsured rate in the country, with only 2.6% of residents remaining without coverage. However, many workers still do not have access to employer-sponsored insurance. Enrolling in MassHeatlh or Commonwealth Care may be the only way for these workers to get coverage.”

The analysis, conducted by the Division of Health Care Finance and Policy, estimates that nearly $491 million in public funds were spent on health care services for employees of more than 1,725 companies with 50 or more employees receiving services from MassHealth, Commonwealth Care or the Uncompensated Care Pool/Health Safety Net. In addition, approximately $303 million in public funds were spent on health care services provided to dependents and non-working spouses of these employees, for a total of nearly $794 million.

This represents a 25% increase from the Fiscal Year 2007 estimate of $637 million. The largest increase in spending was associated with Commonwealth Care, because Fiscal Year 2008 represents the first full year of costs for this program. Consistent with overall trends, Uncompensated Care Pool/Health Safety Net costs identified declined by 33.1%.

Despite the increase, employers in Massachusetts are more likely to offer health insurance than employers nationally. The state’s 2007 survey of Massachusetts employers showed that 72% offer health insurance to their employees, compared to only 60% of employers nationally. The percentage of Massachusetts employers offering health insurance has held steady in recent years, while nationally the rate has been falling. However, another state survey found that, while most uninsured are employed (67%), nearly half (47%) of the working uninsured are employed at a firm that does not offer health insurance. An additional 17% of the working uninsured work part-time and are, therefore, unlikely to be eligible for employer-sponsored coverage.

Enrolling in MassHealth or Commonwealth Care may be the only way that some low-income uninsured persons are able to afford health insurance coverage. For individuals ineligible for these programs, the Health Safety Net (formerly known as the Uncompensated Care Pool) serves as a safety net to finance some care.

The full report is available at: www.mass.gov/dhcfp.

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