Study finds no ‘crowd out’ with Massachusetts health reform

An Urban Institute survey of employers in Massachusetts has found that in the first year after the state’s groundbreaking heath reform, there was no evidence that employer-based coverage was “crowded out” (Source: “How Have Employers Responded to Health Reform in Massachusetts? Employees' Views at the End of One Year,” Commonwealthfund.org, Oct. 28, 2008).

In April 2006, when Massachusetts passed health reform legislation aimed at achieving near-universal coverage, concerns were raised that requirements placed on employers would lead to dropped coverage or a greater burden placed on employees. However, according to the new study, the share of firms offering coverage remained constant at about 90 percent. Furthermore, “No evidence was found of a drop in the scope of services covered, the range of provider choices, or the quality of care available under employer plans,” the study concluded.

The study, “After The Mandates: Massachusetts Employers Continue To Support Health Reform As More Firms Offer Coverage,” was published on the Web site for the journal Health Affairs.