Mass. health insurers agree on $175 a month plan under new law

The average uninsured Massachusetts resident could obtain health care coverage for as little as $175 a month under the state’s insurance law, Gov. Deval Patrick announced as he released the results of negotiations with the state’s health insurers.

The lowest monthly premium is far lower than an earlier estimate of $380 a month suggested by some insurers.

“This is a big improvement from the first round of bids and a big step forward for health care reform,” Patrick said. “The health security that was the point of health care reform will be delivered at an affordable price.”

The minimum plan would cover the average uninsured Massachusetts resident, who is typically around 37-years-old. It includes prescription drug coverage and covers basic medical care, such as emergency room visits and outpatient medical care.

Lower cost plans would be available to young adults. Prices would also rise and fall depending on the age of the person and where they live. If purchased on a pre-tax basis, the lowest cost plans drop to $109 a month for someone earning $50,000 a year.

The panel charged with overseeing the law, the Commonwealth Health Insurance Connector board, is expected to give its seal of approval to the seven plans as meeting its affordability test.

The insurers include Blue Cross and Blue Shield, ConnectiCare, Fallon Community Health Plan, Harvard Pilgrim Health Care, Health New England, Neighborhood Health Plan, and Tufts Health Plan.

The lowest bidder was Neighborhood Health Plan.

The insurers will be able to offer different kinds of plans, from basic to premier coverage. The plans are a critical piece of the landmark insurance initiative, which requires all Massachusetts residents to have health coverage by July 1 or face tax penalties.