Insurance Reform is the Hot Topic All Across Mass State Departments

Commissioner Joseph G. Murphy is really pushing for meaningful insurance reform, “When insurance benefits broker Steve Walsh meets with business clients to discuss changes in their health insurance premiums, he knows the decision goes beyond how much a company should pay for health coverage.

At today’s hearing on small-business health insurance costs in Boston, Walsh testified about one of his clients, a country club trying to cover a 36 percent increase in costs. The owner feels he is barely getting by financially, and was considering raising membership rates in order to cover the increase in health premiums. However, the owner knows many of his members are in a difficult spot in terms of their renewals, and an unexpected increase may cause them to drop their membership. So he decided to not raise membership rates, and hope for the best.

This is the kind of story we hear consistently, about businesses being faced with difficult decisions on their future because of increasing health insurance premiums. Also at today’s hearing, we heard from Jude Silber (in photo left, with Jon Hurst of the Retailers Association of Massachusetts), who runs two businesses in Harvard Square, Motto and MDF. She said, “I can’t do it anymore,” as she discussed trying to keep up with health insurance increases for her seven employees.

We also heard today from a number of trade organizations and other stakeholders in our state’s health insurance market, including one carrier. While we heard some different viewpoints on how to go about fixing health insurance, everyone acknowledges that changes have to be made.

Last month, Governor Patrick unveiled his plan to support small businesses and create jobs. Part of that plan includes reforming health insurance. The Governor has acknowledged that small businesses and families need relief from these big increases now, and we are hearing from all sides of the issue in these sessions that change is certainly needed.”

Governor Patricks push for reform comes amid Attorney General Martha Coakley’s announcement that she intends to fight against insurance right increases.

“Today, Attorney General Martha Coakley’s Office announced its opposition to an insurance industry request to raise workers’ compensation premiums by over 4% this year. If accepted by the Commissioner of Insurance, the rate increase will cost small businesses and other employers more than $40 million in extra premiums. Workers’ Compensation insurance pays lost wages, compensation for permanent injuries, and reimbursement for injury related services caused by job-related injuries.”

Across the nation Anthem Blue Cross has already begun raising rates in California.

According to Michael B. Farrell, with the Christian Science Monitor:

“Despite the outcry, the rate increase for Anthem’s California customers who have purchased individual policies is expected to take effect May 1. It was delayed for two months to allow California regulators to review the hike to ensure it complies with state law. The president included a provision in the revised healthcare package that would give the federal government the ability to block insurance company premium hikes that it deems unjust.

“I promise you that the problem that’s going on in California is going on in every state,” Mr. Obama said Thursday at his healthcare summit, in regard to rising premiums. Executives from Anthem and WellPoint were put in the hot seat over its increases this week at hearings both in the California legislature and in Congress. “How much profit is enough?” Democratic California Assemblyman Dave Jones asked an Anthem executive at a Tuesday hearing in Sacramento.”

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