April 12, 2006- REVISED
Catamount Health Premiums For
those Enrolling in CH
Single premium for this benefit in the commercial market
today = $423 per mo.
The premium is high since commercial payers reimburse
hospitals and other providers at 44% above the cost of
CH would pay 10% above the cost of treatment, reducing
the premium by 24%
Differences in morbidity between the CH eligibles and
those privately insured reduce the premiums by 10%
Overall reduction in premium is 34%--24% from lower
payments and 10% due to differences in health status
Used a lower reduction (28%) to build in a “cushion” in
case actual costs exceed estimated costs.