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Setting A Standard Of Affordability For Health Insurance Coverage

¹ Linda Blumberg is a principal research associate at the Health Policy Center, Urban Institute, in Washington, D.C.
² John Holahan directs that center.
³ Jack Hadley is also a principal research associate there.
⁴ Katharine Nordahl is director of policy and research at the Blue Cross Blue Shield of Massachusetts Foundation, in Boston.

^*Corresponding author.

Abstract

Recently, Massachusetts passed landmark legislation designed to expand health insurance coverage. This legislation includes a requirement that all adults enroll in a health insurance plan. This mandate takes effect only if an "affordable" plan is available. The definition of affordability for individuals and families of different incomes or circumstances is a critical decision in implementation and is relevant to any state or federal reform requiring individual premium or cost-sharing contributions, or both. This analysis was done to assist the policy design process in Massachusetts and delineates an empirically based approach to setting affordability standards. [Health Affairs 26, no. 4 (2007): w463-w473 (published online 4 June 2007; 10.1377/hlthaff.26.4.w463)]

Key Words: Access To Care, Business Of Health, Consumer Issues, Health Reform, Insurance Coverage, Insurance - Employer-Based System, Managed Care - Consumers, State/Local Issues, Health Spending, Insurance Market

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