Navigation Links
Cost of Massachusetts Health Insurance Mandate to Rise 85% -- $400 Mil -- in '09; CA Mandate Proposal Certain to Face Similar Increases
Date:1/24/2008

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:
*Name:
*Comment:
*Email:
(Date:5/24/2016)... ... May 24, 2016 , ... Fire Door ... provide one resource, from start to finish, for Life Safety compliance. These ... Condition surveys requested by the Joint Commission, and fire stopping reviews, inspections, and ...
(Date:5/24/2016)... ... 2016 , ... United Benefit Advisors (UBA), the nation’s leading ... & Co., Inc. Headquartered in Albany, New York, Austin & Co., Inc. ... and beyond. As an employee-owned company celebrating over 160 years of service, ...
(Date:5/24/2016)... ... May 24, 2016 , ... How to Write Error Free Procedures, **Presented by ... , Human error is known to be the major cause of quality and production ... totally eliminated, many human performance problems can be prevented. , How to Write Error ...
(Date:5/24/2016)... ... (PRWEB) May 24, 2016 -- ... of its Advisory Board. Joining the Grow Healthy Advisory Board ... of them embody the mission of our organization and bring talent, ... have them as we continue to expand our footprint as the ...
(Date:5/24/2016)... ... May 24, 2016 , ... Backed by decades of ... each job, ensuring the best suited solution to meet regulatory requirements. Their professional ... their lab in Istanbul. , Metroloji Okulu specializes in MadgeTech’s line of medical ...
Breaking Medicine News(10 mins):
(Date:5/23/2016)... Clarifying Vision - Prospects and ... Vision Care What can be expected from ... grow at the fastest rates? This visiongain ... trends, opportunities and prospects. ,Our 190-page ... most lucrative areas in the industry and the future ...
(Date:5/23/2016)... , May 23, 2016 ... reach USD 5.0 billion by 2022, according to a ... generation of medical waste coupled with the lack of ... is expected to drive the demand for reprocessed medical ... devices as compared to that of the original device ...
(Date:5/20/2016)... , May 20, 2016 ... Therapeutic Antibody Technologies, Insulins, Growth Hormones, Recombinant Coagulation ... Biological Drugs - This New Study Reveals Selling ... Ahead ,What is the future ... the latest technological and commercial analysis. Staying ahead ...
Breaking Medicine Technology: