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Gov. Deval Patrick's Call To Cap Costs Called Unfair To Insurers

March 10, 2010 | Boston Herald (MA)
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Source: Boston Herald (MA)
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Mar. 10--Gov. Deval Patrick will go to bat today for his controversial plan to impose price caps on health-care costs amid concerns he's cracking down too hard on insurers and not enough on medical providers.

Patrick will appear before a joint meeting of two legislative committees to pitch his small-business stimulus package, which includes new tax incentives and loan programs for small firms struggling during the economic downturn.

But the most far-reaching proposal is Patrick's call for "soft caps" on premium increases on health insurance plans for small businesses and individuals.

The plan, outlined a few weeks ago, has been partially implemented by his administration via executive order. But Patrick still needs legislation for his administration to set specific threshholds about what constitutes "excessive" price hikes by insurers and medical providers, such as hospitals.

Some business leaders are worried the governor's plan focuses too much on insurance premiums and specific contracts insurers sign with medical providers -- and not enough with the actual cost of medical procedures and services.

"We fear it's not getting to the heart of health-care costs," said Lora Pellegrini, president of the Massachusetts Association of Health Plans, an insurance group expected to lead the charge against Patrick's plan.

A spokeswoman for Patrick said the governor's plan treats insurers and providers "evenhandedly."

In a statement, Lynn Nicholas, president of the Massachusetts Hospital Association, said the current system allows insurers to overcharge small businesses while giving larger customers breaks on their premiums.

To see more of the Boston Herald or to subscribe to the newspaper, go to http://www.bostonherald.com.

Copyright (c) 2010, Boston Herald

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