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Originally published Monday, June 8, 2009 at 11:55 AM

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Wash. health plan for poor to raise rates

People covered by the state-subsidized Basic Health Plan will pay more out of pocket, but the state will not kick huge numbers of people off the plan, despite previous warnings that 40,000 could lose their coverage to save the state money.

Associated Press Writer

OLYMPIA, Wash. —

People covered by the state-subsidized Basic Health Plan will pay more out of pocket, but the state will not kick huge numbers of people off the plan, despite previous warnings that 40,000 could lose their coverage to save the state money.

The Basic Health Plan offers taxpayer-supported health coverage to people making less than double the federal poverty level, which is equal to about $44,000 for a family of four.

It's intended for the "working poor" - people who have jobs, but don't qualify for Medicaid and can't afford their own health insurance. About 100,000 are enrolled in the plan, which is bankrolled entirely by the state.

The new pricing scale will increase the average monthly premium by about $25, to nearly $62, starting in January. The yearly deductible also will increase, from $150 to $250.

Even a modest price hike will be difficult for the poorest families who rely on Basic Health for coverage, administrator Steve Hill said, "But this option gives those families a choice. No one qualified for the program will be arbitrarily removed."

Up to 8,000 people who are eligible for Medicaid will be moved onto that plan, which splits costs with the federal government. Basic Health officials also plan to audit their rolls more carefully, which should find people who are no longer poor enough to qualify for coverage.

Earlier this year, facing a 2 1/2-year budget deficit of about $9 billion, the Legislature cut spending on the program by more than 40 percent, saving about $250 million.

Majority Democrats warned that the budget cut could lead to tens of thousands of people being taken off the program amid a major recession. But the program's administrators, who report to Gov. Chris Gregoire, decided instead to raise rates.

Gregoire, who initially proposed the Basic Health cut in her December budget request, praised Monday's decision.

"They found a way to minimize the number of people losing health care, but we still have a long way to go," Gregoire said. "There are more than 30,000 Washington residents waiting to get into Basic Health."

Also on Monday, state Insurance Commissioner Mike Kreidler said some 110,000 people have lost health coverage because of job losses this year, significantly adding to the rolls of uninsured in Washington.

The figure includes about 95,000 people who have lost jobs, and about 15,000 dependents, said Kreidler, a Democrat.

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On the Net:

Health Care Authority: http://www.hca.wa.gov

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