Patrick Health Care Proposal Deserves Support
Massachusetts health care reform has been successful due to the confluence of the interests of businesses, health care providers, insurers, government and consumers who together have borne additional costs allowing Massachusetts to reduce the number of uninsured by more than 355,000.
The joint decision by Gov. Deval Patrick, the House and the Senate to adequately fund the growing demands of our health care system by seeking support from all of these constituents is consistent with the shared responsibility which has brought us success to date.
Opposing View
Bill Vernon’s criticism of the plan (“Small Biz Shouldn’t Foot Bill For Health Care,” WBJ Aug. 4) is clothed in false assumptions. He contends that health reform is costing more due to unnecessary regulations, and he implies that the business community is bearing these costs alone.
Neither of these points is true.
Health reform is costing more because more formerly uninsured residents are now receiving life-saving health care coverage. The basic premise of the law was that a reduction in the number of uninsured required all stakeholders to contribute to the costs of success. Logically, we can assume from this basic fact that as costs increase, they will be funded by this same variety of stakeholders.
Indeed, the governor’s proposals — now supported by both the House and the Senate — are consistent with that premise. Low income consumers have already begun paying more as of July 1; one of the changes for the new fiscal year imparts higher premiums, deductibles and co-payments for consumers amounting to $30 million or more in costs to low income persons in Commonwealth Care.
Costs to business under the Fair Share assessment were expected to amount to $171 million in the first three years, according to the previous administration. Instead, they have amounted to less than $15 million. Governor Patrick’s proposal to refine the definition of “fair and reasonable” contributions by businesses resulting in an additional $33 million in business contributions next year is still much lower than the original estimates that the business community signed on to in agreeing to support health reform.
Share The Burden
Health care providers, insurers, and government are also being required to make additional payments under the governor’s proposals. These funding sources respect the original concept of shared responsibility.
Simultaneously, the legislature just passed a comprehensive health care cost containment bill, aimed at lowering cost, reducing inefficiencies, and improving quality of care for Massachusetts residents. Cost control — in addition to revenue-raising to cover the funding gap in health reform — is at the top of state government’s agenda.
The only alternative approaches to dealing with increasing costs within the Commonwealth Care program are to cap enrollments or to make more assessments on the poor which would reverse the progress which we have made in the past year. Massachusetts is proudest of its leaders who recognize that the compromises inherent in the governor’s plan are both in the original spirit of the legislation and the best way forward to make further progress.
Philip J. Edmundson is chairman and CEO of William Gallagher Associates, a Boston-based insurance brokerage firm as well as chairman of ACT!!!, a coalition of health care providers, insurers, business and consumer group.
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