Senate Municipal Plan Design Language Falls Short – Undercuts Savings

Posted by John Regan on Jun 14, 2011 12:31:00 PM

describe the imageAssociated Industries of Massachusetts is asking lawmakers to adopt the House version of a bill giving cities and towns the power to control health insurance costs.

AIM said in a letter to budget conferees that the Senate version of the municipal health measure would undermine the estimated $100 million in savings promised by the bill.

AIM's concern about the Senate bill was confirmed this morning by a study showing that:  “Dozens of communities across the state would lose the benefits of municipal health care reform under the Senate’s provision requiring that municipal contributions for retirees be the same as for active employees, according to a preliminary analysis by the Massachusetts Taxpayers Foundation. The Foundation has identified 50 municipalities and regional school districts that would be impacted, with that number likely to be as high as 100 when all communities have been analyzed.”

Click here to read the MTF analysis.

AIM and Massachusetts employers generally support municipal health reform because the spiraling cost of health insurance is eroding the ability of city and town governments to deliver educational, public safety and other services upon which the economy depends.

Topics: Associated Industries of Massachusetts, Health Care Reform, AIM, Municipal Reform, Controlling Health Care Costs, Senate Budget

Early Intervention & Controlling Massachusetts Health Care Costs

Posted by Eileen McAnneny on Jun 2, 2010 10:00:00 AM

One item passed during the Senate budget debate highlights the dilemma and challenge facing lawmakers in these trying economic and fiscal times.

On the one hand, the Senate has made controlling health care costs for small businesses a top legislative priority for this session. On the other hand, they continue to advance policies that add new costs for the very businesses they seek to help.

Budget Amendment #628 excludes early intervention services from being subject to co-payments or deductibles for coverage offered through a licensed carrier. Early Intervention services are provided to young children from birth until their third birthday. By excluding early intervention services from any type of cost-sharing mechanism, including co-payments and deductibles, employers have less ability to control their health care costs and keep monthly premiums at a minimum through use of innovative benefit design.

While we recognize the value of early intervention services, AIM is not supportive of this measure as it increases monthly premiums at a time when employers are struggling with the high cost of health care, and sets a bad precedent as the Senate works to provide relief to small businesses.

Small- and medium-sized businesses will largely bear this new cost since large, self-insured employers that are governed by the Federal Employee Retirement Income Security Act (ERISA) are not subject to this new mandate.

We cannot make the cost of health care "free" to consumers while thinking we can keep costs down for businesses at the same time. Someone has to pay for the health care consumed.

If patients do not have out-of-pocket expenses, they consume more health care services than they need. This does not lower costs. If businesses must shoulder more of the cost of a particular service, as proposed by this amendment, there will be less money available for other types of health care benefit; less for compensation to employees; and less for investment in the business.

Lawmakers can no longer shield consumers from the true costs of health care. Consumers are key to transforming out health care system into a more rational and efficient one. The policy to disallow cost sharing for early intervention services is a step in the wrong direction and at odds with the Senate goal of reducing health care costs for small businesses.

We hope this language is not adopted in the final budget approved by the Budget Conference Committee and sent to the Governor


We hope this language is not adopted in the final budget approved by the Budget Conference Committee and sent to the Governor

Topics: Health Care Reform, Health Care Costs, Controlling Health Care Costs, Senate Budget, Massachusetts, Federal Employee Retirement Income Security Act, Early Intervention Services

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