Three weeks after Governor Deval Patrick warned that his administration might turn down health insurance premium increases it deemed excessive for individuals and small businesses, insurers have asked the state to approve rate hikes of 8 to 32 percent for April 1.
Discuss How much do you pay for insurance?Patrick last month said the state Division of Insurance would review rate increases exceeding 4.8 percent as part of a broader effort to rein in health care expenses. If the insurers’ latest round of increases is rejected, it would mark the first time Massachusetts has capped health insurance rates.
Insurers say such a move would cause confusion in the marketplace, as they already have negotiated contracts with many individuals and small businesses at the new rates. Capping the rates would also result in immediate financial losses, insurers assert, forcing them to cut payments to health providers and threatening the viability of weaker hospitals.
Executives from Blue Cross and Blue Shield of Massachusetts, the state’s largest health insurer, have asked state officials to delay their decision on rates. And the Massachusetts Association of Health Plans, a trade group representing 11 other insurers in the state, has asked for time to let insurers propose cost-savings alternatives of their own.
How long before Deval:
1. Makes some stern noises about irresponsible insurance companies
2. Gives them everything they want, in part through some mechanism that involves tax increases
Sigh. When will we hop on the clue train and elect actual Democrats who enact actual health care reform?
He could speak out loudly against the rate hikes, and then give the insurers what they want anyway. Or most likely, he will compromise with them, as he did with National Grid (Aaaargh).
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p>The problem is…..
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p>that at this point in time, being an election year, if he does not cater to them, they can rally against him on election day and help to vote him out.
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p>You can call me paranoid, but I considered this a possibility during the U.S. Senate election, National Grid was seeking $111 million in additional revenue. Martha Coakley’s stance on that was the following from the same link…
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p>Now being as there is a sense of “employees united” in those types of firms, imagine if every National Grid employee and their family and friends made a concerted effort to vote against Martha Coakley on election day. That’s a lot of votes. (While I was standing out with Martha’s sign on election morning, a small National Grid truck was driving up the street, down the street, left on State St. and back again, up and down and just sort of looking around. I thought it was rather odd, since it wasn’t even lunch time, -that’s what made me curious about the possibility of a silent rally against Ms. Coakley)
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p>I applauded Martha for taking a strong stand against National Grid on this topic, and for
standing strong for the already struggling middle class. National Grid makes plenty of money; I never see them upgrading anything. It’s too bad they squandered all the money away when times were good. They also wanted more money to make up for those who don’t pay their bill, (the sense of it all, can’t afford so we’ll charge more)
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p>The point is, is that Governor Patrick 1st priority should not be whether or not he gets elected again. That is not his job. His job is to make good use of the time he is there by protecting the people he was elected to serve. If that means angering every health insurer in the state then he should do that. That’s why we need a Governor. We don’t need a Governor who’s only purpose is to become Governor again in the next election.
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p>This work on the cost of Health care in Massachusetts is long overdue. He should have this well on it’s way to resolution. I can only hope he does not cower in the face of these powerful psychopathic corporations.