Briefing: Health Care Costs
Health care costs are the single biggest budget issue for the state, and for many businesses and families. So it’s no surprise that the Massachusetts Legislature is looking at all kinds of bills proposing ways to curb health spending. Various groups have their own agendas for how the issue should be addressed.
How important is containing health costs to businesses?
The Associated Industries of Massachusetts, one of the state’s major business groups, says health costs are by far the most important item on its 2011-2012 legislative agenda. AIM is throwing its weight behind bills that would reduce employers’ obligations when it comes to providing insurance, change the Medicaid system to limit its costs and give cities and towns more power to design insurance plans without negotiating with unions.
What does AIM want to change about employees’ obligations?
AIM is calling for one change that would allow for higher-deductible plans and another that would exempt employers from “fair share contribution” requirements if their employees have spousal coverage. The group also wants a moratorium on new mandates for particular types of coverage, and an end to the publication of an annual state report that lists employers with more than 50 employees using public health assistance.
What do insurers want?
The Massachusetts Association of Health Plans’ agenda includes several items aimed at hospitals. It calls for measures that would make it more difficult for hospitals to open new facilities or expand their services, a new review process for hospitals with a margin of more than 5 percent and limits on reimbursements for hospitals that have recurring preventable readmissions. MAHP also advocates for the creation of a new affordable health plan option for small businesses. Like AIM, the insurers favor a moratorium on coverage mandates and changes to Medicaid.
How about providers?
The Massachusetts Medical Society is focusing largely on reducing the costs of malpractice suits. It also says it’s working with legislators and other stakeholders on the beginning of major changes to health care payment systems that would reduce the use of fee-for-service mechanisms.
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