GIC urges Baker to seek cap on provider rates
The state commission that manages health insurance for thousands of active and retired state and public employees has asked Gov. Charlie Baker's administration to file legislation capping payment rates to health care providers.
The legislation sought by the Group Insurance Commission, based on a vote taken at its Jan. 19 meeting, would cap rates for services provided to people covered under commission plans at "160 percent of the Medicare base rate or as otherwise determined by the Executive Director," according to a letter from GIC Executive Director Roberta Herman.
In the budget he plans to file Wednesday, Baker plans to seek rate caps aimed at holding down commercial insurance costs for employers and policyholders. The governor also plans to ask for a new assessment on certain employers aimed at generating $300 million to help the state afford enrollment-related costs in publicly-funded insurance.
Saying the commission believes members' claims should be paid at a "sustainable rate," Herman also requested that the legislation include "balance billing protection for all GIC health plan offerings and a provision that protects against providers denying care to GIC members."
State employee health insurance costs are a major area of spending in the annual state budget. On Tuesday, the Boston Globe reported that administration officials said they plan to include the request in Baker's budget bill.
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