Navigation Links
Cost of Massachusetts Health Insurance Mandate to Rise 85% -- $400 Mil -- in '09; CA Mandate Proposal Certain to Face Similar Increases

Also, Big Pharma Gives $400K to Prop 93, Drops Opposition to Schwarzenegger/Nunez Health Bill After Plan Change

SANTA MONICA, Calif., Jan. 24 /PRNewswire-USNewswire/ -- A projected 85% increase in the cost of Massachusetts' mandatory health insurance law by 2009 should send up red flags that a similar California plan is also insufficiently funded, said the Foundation for Taxpayer and Consumer Rights (FTCR). Massachusetts costs will increase by approximately $400 million primarily because the state underestimated the number of new enrollees in state-subsidized insurance plans, the Boston Globe reported today.

California mandatory purchase legislation eliminated another opponent, the pharmaceutical industry, prior to a committee hearing in the state Senate yesterday. The companies dropped their opposition in response to an amendment that drastically weakens the bill's original mechanism for reducing drug costs, according to FTCR. At the same time, the drug companies' lobbying arm contributed $400,000 to Proposition 93 on Tuesday, the ballot initiative that would extend the terms of Senate pro Tem Don Perata and Assembly Speaker Fabian Nunez. The companies' new concern is being cut out of the benefit package, necessary according to the Legislative Analyst to hold down costs.

"Drug companies got the language they didn't like out of the healthcare bill and thanked the Speaker with $400,000 towards his term limits extension initiative," said Jerry Flanagan of FTCR. "This is more evidence that the healthcare bill is more about protecting politicians' power than California patients."

California's Legislative Analyst issued a warning that cost estimates in California are inadequate in testimony to the Senate committee, suggesting that proponents' estimate of the number of uninsured is too low. She also projected a $4 billion deficit in health plan financing in just five years if insurance premiums are just $50 a month more expensive than the Speaker and Governor's projections. FTCR called that a likely scenario given that nothing in the bill adequately limits premium increases by insurers and, as the Legislative Analyst contends, Speaker Nunez's cost projections are likely too low.

"The Speaker's mandatory health insurance scheme has no provision for inevitable increases in premium costs, and he has purposely low-balled the number of uninsured to make the numbers add up. The funding's just not there. When state financing fails, more of the cost burden will be borne by California families," said Carmen Balber with FTCR. "Massachusetts' mistakes should be informing the California debate, instead proponents are trying to sweep them under the rug."

Cost increases in Massachusetts are relevant to California, said FTCR, because they stem not from the plan's funding source (which differs between the states) but on assumptions about the health insurance market and the uninsured. Both states underestimated the number of uninsured when projecting costs, and the double-digit increases in the cost of health coverage that are projected in Massachusetts are another probability not considered by proponents of the California plan.

SOURCE Foundation for Taxpayer and Consumer Rights
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Massachusetts State Court Hears Suit by Breastfeeding Mother on Medical Licensing Exam
2. Massachusetts Employers and Health Plans Continue to Support Quality Care by Rewarding Physicians through Bridges to Excellence Programs
3. NBME Appeals Massachusetts Judges Reversal of Lower Court in Suit for Extra Break Time During Medical Licensing Exam
4. AIDS Action Committee Testifies to Protect the Privacy of People Seeking Healthcare in Massachusetts
5. Newton-Wellesley Hospital First in Massachusetts to Implement Isabel Diagnosis Decision Support System
6. Massachusetts Mandatory Health Insurance Purchase Law is No Model for California
7. AstraZeneca Response to November 2, 2007 Ruling In Re: Pharmaceutical Industry Average Wholesale Price Litigation, MDL No. 1456, U.S. District Court, District of Massachusetts
8. Schering-Plough Reports U.S. District Court for District of Massachusetts Finds No Liability for Subsidiary in AWP Case
9. Biotech Company Builder Papadopoulos Says Investment in Innovation Needed to Advance Drug Pipeline at Massachusetts Biotechnology Councils Ninth Annual MASS Opportunities Investment Conference
10. Consumer Group to Nunez: Massachusetts Mandatory Health Insurance Purchase Law Is No Model for California
11. Lung Cancer Alliance Hails Massachusetts Senator for Taking Lead on Lung Cancer Legislation
Post Your Comments:
(Date:11/27/2015)... ... 2015 , ... A team of Swiss doctors has released a report on ... just posted the findings on the website. Click here to read the details ... mesothelioma patients who were treated with chemotherapy followed by EPP surgery. Among the 106 ...
(Date:11/27/2015)... ... ... Lizzie’s Lice Pickers just announced a special promotion that will run throughout ... of lice treatment product. In addition, customers will receive a complimentary head Check when ... is a sure way to ruin the holidays, so we encourage all of our ...
(Date:11/27/2015)... ... November 27, 2015 , ... MPWH, the No.1 Herpes-only dating community in the world, revealed that ... ). More than 3.7 billion people under the age of 50 – or 67% ... WHO's first global estimates of HSV-1 infection . , "The data shocks us highly!" ...
(Date:11/27/2015)... ... November 27, 2015 , ... A simply groundbreaking television series, "Voices in ... that delves into an array of issues that are presently affecting Americans. Dedicated to ... dialogue, this show is changing the subjects consumers focus on, one episode at a ...
(Date:11/27/2015)... Los Angeles, CA (PRWEB) , ... November 27, 2015 , ... ... the Commission on Accreditation of Allied Health Education Programs (CAAHEP) awarded accreditation to its ... exclusive list of CAAHEP accredited colleges, as only one of twelve colleges and universities ...
Breaking Medicine News(10 mins):
(Date:11/26/2015)... 26, 2015 --> ... SyMRI to find optimal contrast weighting of MRI for ... has signed a research agreement with SyntheticMR in order to ... SyMRI, it is possible to generate multiple contrast images from ... patient has left, thus making it possible to both fine ...
(Date:11/26/2015)... 26, 2015 ... "2016 Future Horizons and Growth Strategies ... Market: Supplier Shares, Country Segment Forecasts, Competitive ... offering. --> ) has ... Future Horizons and Growth Strategies in the ...
(Date:11/26/2015)... 2015 Research and Markets ( ) ... Care Market by Type (Dressings, Therapy Devices, Active Wound ... Out-Patient Facility), and Geography - Global Forecast to 2020" ... --> --> The purpose of this ... of the global advanced wound care market. It involves ...
Breaking Medicine Technology: