Healthcare reform is upon us
For good or bad, the Federal model contains several similarities to the Massachusetts Health Reform Law. If they would bother to look north, Washington could learn a thing or two about the effectiveness and pitfalls of poorly designed reform. The Massachusetts model, now three years in, has hit its coverage goals of 97% but is quickly devolving in to a financial burden for all involved. In the past year, several urban hospitals have been forced to sue the state for under reimbursement; the Governor has artificially capped the medical premiums to a point that may bankrupt some insurers; the insurers in turn are suing the state and have pulled their products from the state exchange “Connector” some believe permanently; and rates continue to increase at double-digit levels.
The Massachusetts model and the federal reform law are either on a date with destiny or a collision course to infamy. In Massachusetts, we have seen our clients struggle to deal with the complexities of the new law, to stay on top of the compliance issues while being buried under increased administrative burdens. Further, small group rates are rising faster than the national trend and little has been done to reduce the overall cost of care. I was recently asked to talk about what’s happened here in our state as a “cautionary tale” of what’s to come in for Leader’s Edge Magazine, check it out.