Boston Globe Examines Influence Of Health Care Industry In Brokering Compromise On Massachusetts Reform Package

Main Category: Health Insurance / Medical Insurance
Article Date: 17 Mar 2006 - 23:00 PDT

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The Boston Globe on Monday examined how Boston-area health care executives helped "forge a compromise" on health insurance legislation after leaders in the state House and Senate deadlocked over legislation that would reduce the number of uninsured in the state. According to the Globe, Jack Connors, chair of Partners HealthCare, on March 1 convened a meeting of "local powerbrokers" -- including officials from Partners, Blue Cross and Blue Shield of Massachusetts, the Greater Boston Chamber of Commerce, the Massachusetts Taxpayers Foundation and other groups -- to "devise a plan" under which companies with 11 or more employees would pay $295 per employee if they do not provide health coverage. On March 3, Senate President Robert Travagalini (D) and House Speaker Salvatore DiMasi (D) announced they would include the charge in the legislation they are considering. A conference committee last week began working on the new bill, which could be announced as early as this week. The $295 levy would raise about $48 million annually in addition to other funding sources for the state's health care industry. According to the Globe, it is unclear how the additional $48 million would be used to expand health coverage, although lawmakers are expected to set aside other funds to provide subsidies for uninsured low-income families. According to the Globe, the $295 charge "was intended to be modest enough to win support of enough business groups and perhaps even Gov. Mitt Romney (R), who has vowed to reject any plan that includes a tax." In addition to the charge, the compromise package also would require all individuals in the state to purchase health insurance and increase Medicaid reimbursements to providers. The legislation is "potentially ... a huge win" for the health care industry, because "residents would be required to buy the companies' products," and providers would receive higher payments from Medicaid, the Globe reports (Rowland, Boston Globe, 3/13).

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