Massachusetts House Approves Bill To Raise $89M From Insurers, Health Care Providers

Main Category: Health Insurance / Medical Insurance
Also Included In: Public Health
Article Date: 01 Aug 2008 - 10:00 PDT

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The Massachusetts House on Tuesday voted 135-21 to approve a bill that would require insurance companies and health care providers in the state to contribute more money to close a funding gap in the state's health insurance law, the AP/Boston Globe reports. The bill would generate $89 million. A proposal by Gov. Deval Patrick (D) to raise an additional $33 million by increasing contributions from businesses was eliminated from the measure. Patrick had proposed closing a loophole that allowed companies with more than 10 workers or without employer-based insurance coverage to avoid paying an annual penalty of $295 per worker, according to the AP/Globe.

House Speaker Salvatore DiMasi (D) in a statement said that "modest changes" to the measure would allow the law to continue and create the right balance between state and private-sector involvement. The law has expanded coverage to about 340,000 residents since it was enacted in April 2006, but rising costs have forced state officials to raise premiums and seek new sources of revenue, the AP/Globe reports.

Kyle Sullivan, a spokesperson for Patrick, said the governor still has the authority to make regulatory changes to increase business contributions, but he did not say whether Patrick would do that. The bill now moves to the Senate (Johnson, AP/Boston Globe, 7/29).

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