Hey, here's a little something that could affect health care cost control around here …
And about time!
The insurers are going to have to hand over some info as well, which could get a bit interesting for Charlie Baker:
Representatives of health insurance carriers Blue Cross and Blue Shield of Massachusetts, Harvard Pilgrim Health Care, and Tufts Health Plan confirmed that the Justice Department had asked them to turn over documents relating to their dealings with Partners. All said they plan to comply with the directive, formally known as a civil investigative demand. A fourth large state insurer, Fallon Community Health Plan based in Worcester, said it did not receive the Justice Department’s order.
This doesn't mean HPHC is in trouble. One way or another, it may shed light on the decisions Charlie Baker had to make in dealing with Partners.
Let's remember that back in 2002, Tufts Health Plan tried to bargain down Partners' rates, and Partners pulled out, saying they wouldn't take Tufts insurance anymore. Hardball. Tufts caved.
Partners' rates, and the effect on other providers' rates, are almost certainly a major factor in what drives health care inflation around here. And it wouldn't be surprising to find that the other insurers didn't want to go through the trouble.
But it is surprising that only recently have the legal authoritiess (including Coakley's AG office) been getting involved. The more scrutiny, the more interest, the more action, the better.
ward3dem says
Refer to the AG report from March – Link: http://www.mass.gov/Cago/docs/…
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p>The report give a balanced appraisal of the many sources of rising health care costs. Including the following excerpt that meshes with federal investigator’s premise:
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p>The key word is LEVERAGE and how providers use it.
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p>This is very interesting and will have some effect on the ongoing efforts on Beacon Hill to reign in health costs.
patricklong says
I was about to cite the AG’s report when I saw the diary.
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p>I hope you’re understating when you say it “will have some effect on the ongoing efforts on Beacon Hill to reign in health costs”
It should have a HUGE effect. The AG’s report makes a pretty good case for single payer. The economic argument against is that doctors and hospitals would be discouraged from practicing medicine if gov’t could use its leverage to drive down prices. But the reality is that the current system incentivizes monopolistic deals over good medicine.