It’s been held up as an example in the Presidential debates, but now that the numbers are in, Massachusetts’ new mandatory health insurance program Commonwealth Care is turning into a cautionary tale for those who would like to implement a similar version at a national level.
Cost projections were off by about 50%: the state budgeted $472 million for the first year of the plan’s operation, but current projections for this year are estimated at $245 million over the original estimates. The overage for next year is $400 million.
Enrollment, which was predicted to be 140,000, is now estimated to hit 225,000 by June 2009.
On the revenue side, the state had factored in contributions of $24 million from businesses that don’t provide employee health insurance. The reality is a $19 million shortfall; the actual revenue from businesses will be only $5 million.
How did state planners get this so wrong?