Health

Project Mass.: The Cost Of Health Care Reform

BOSTON (CBS4) ― Massachusetts Health Care Reform Law is one of the most ambitious health initiatives in the country.

Its goal of health care for all, promises to be one of Deval Patrick's greatest challenges as Governor. It's also going to pose challenges for thousands of people who live in Massachusetts, even many who already have insurance.

George Montilio has insurance, but as a business owner, he's trying to figure out the best way to hold up his end of the health care reform bargain for his employees.

Montilio, whose family has made cakes for everyone from Queen Elizabeth to JFK, is the owner of Montilio's Bakery in Brockton. His may be one of the most well-known bakeries in Massachusetts, but it's still a small business.

Like many other small businesses, Montilio can't afford to buy health care for his workers.

"Most small businesses operate on a very small margin," he explained.

Now, Montilio has no choice.

Under Massachusetts landmark health care reform law, businesses with more than ten employees have to pay something.

They can contribute to premiums for at least 25 percent of their workers or they can pay a $295 dollar fee per employee to the state.

Either way, if you want a Montilio's wedding cake, it's going to cost more.

"We'll be between 7 and 10 percent on different items," Montilio explained. "There is no getting around it".

George's staff will have to pay too. Depending on their income, they may have to come up with as much as $2,000 a year for their insurance.

"Middle class people who haven't got $1,000 or $2,000 of spare cash each year will take it on the chin," said Dr. Alan Sager of the Boston University School of Public Health.

According to Sager, Massachusetts already spends more than any other state on health care. He believes health care reform is destined to fail because it does nothing to cut costs.

"If we spend at the national average, we would save 16 billion dollars this year," explained Sager. "That's enough to pay for the entire big dig."

Even Governor Patrick admits health care reform is a work in progress.

"I think all of us feel that the best thing we can do is give it a chance," said the Governor at a recent event. Patrick also left the door open to make some adjustments in the future.

The only adjustment George Montilio sees is higher prices.

"I can't pay it, I mean, I can't, there's not that extra money running around," he explained. "It all goes to everything else."

Experts say many small businesses will be in the same boat. That means we can all expect higher prices on more than just pastry.

For both individuals and businesses, there are stiff penalties for those who don't comply with the new law.

If you'd like information about health care reform and what your obligations are, we put together a few weblinks to help you find the information you need.

Health Care For All: www.hcfama.org

Massachusetts League of Community Health Centers: www.massleague.org

Boston Public Health Commission: www.bphc.org

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