“Exploring How New Hampshire Could Cut Medicaid Costs by Implementing Premiums” – The Boston Globe

In February, New Hampshire legislators examined Governor Kelly A. Ayotte’s two-year budget. A key part of the budget involves changes to Medicaid costs. Her administration plans to require some Medicaid recipients to pay premiums for their coverage.

Specifically, adults enrolled in the Granite Advantage Health Care Program who earn above the federal poverty line will need to pay up to 5% of their income for health coverage. Currently, over 11,000 individuals fall into this category. Officials believe this change could save the state about $12 million by fiscal year 2027.

Children from families earning more than 255% of the federal poverty level would also face premiums. These would apply to around 8,600 families, representing 10% of that group. The anticipated savings from this will be approximately $14.3 million over the next two years.

New Hampshire isn’t the first to implement such premiums. At least 17 other states, including Massachusetts, have similar policies, according to a health policy research firm.

To give some context, the current federal poverty level is about $15,650 for an individual and $26,650 for a family of three. Under the new proposal, a single mother with two kids earning $68,000 could pay around $283 a month for their Medicaid. Representative Mary Jane Wallner pointed out that this amount could feel similar to a car payment, making it a struggle for families to manage.

Wallner also raised concerns about what would happen if a family couldn’t pay the premium. In response, Henry Lipman, the director of Medicaid services, explained that families losing Medicaid coverage could reapply since the program is always open. However, the specifics around how these premiums are enforced are still being developed.

Overall, the intent behind introducing these premiums is to prepare beneficiaries for future healthcare costs. Historically, New Hampshire has charged lower income thresholds for similar premiums, aiming for more straightforward implementation this time around.

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