On June 21, the Blue Cross Blue Shield of Massachusetts Foundation released a report examining the impact of the national health care reform law on Massachusetts.  The report highlights the new federal funding that the law will bring to Massachusetts, the law’s impact on coverage in the state, changes the law makes to taxes and provider reimbursements, and the differences between the national health care reform law and the 2006 Massachusetts reform law.  The report projects that the law will yield $3 billion in new federal funds over the next ten years for the state’s MassHealth and Commonwealth Care programs.  However, the report cautions that, if state subsidies for coverage end, low-income residents will face increased costs because state subsidies are higher than the federal health care reform subsidies.  Currently, an individual enrolled in Commonwealth Care earning $15,000 annually pays an average of $295 per year for health care.  Without continued subsidies that cost would rise to $626 per year under the federal subsidy program.

From the report:

The PPACA will direct billions of new federal dollars into the Massachusetts health delivery system to expand coverage to new populations. The law also presents many opportunities for investments in pilot programs, demonstration projects, and grants to help the state reach its cost containment and quality of care goals. New insurance rules will further strengthen some aspects of the state’s health insurance con­sumer protection laws.

Full report: Re-Forming Reform: What the Patient Protection and Affordable Care Act Means for Massachusetts (PDF | 830 KB)

Blue Cross Blue Shield of Massachusetts. (2010). Re-Forming reform: what the Patient Protection and Affordable Care Act means for Massachusetts. Seifert, R.W. & Cohen, A.P.