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Massachusetts Health Care Plan

August 6, 2012 | No Comments
Posted by Frank Ciesla

As we have stated in prior blogs, the health care plan developed in the State of Massachusetts is a model which must be watched as a precursor of what most likely will happen under the Affordable Care Act (“ACA”).  As we previously pointed out in my July 3rd blog, legislation is pending in Massachusetts which will implement cost reductions in health care.  Referenced are four articles from the Boston newspapers [(1) 8/1/12 Boston Globe; (2) 8/1/12 Boston Globe; (3) 7/31/12 Boston Herald; and (4) 7/31/12 Boston Business Journal] as to the recent enactment of legislation by the Massachusetts legislature which very likely will be signed by the Governor.

While the specifics will play out over the next 24 months, what is clear is that reimbursement to health care providers will be reduced.  This mode of making health care “affordable” and accessible to a larger number of people assumes that the reduction in payments to providers will provide the providers with sufficient resources, including compensation to the individual providers delivering the health care.  The model also assumes that these payment reductions will not result in a reduction of those services as a result of providers not receiving sufficient reimbursement to be able to fund the costs of providing services.  There appears to be no question that a significant portion of the affordability and accessibility to health care which will be provided in Massachusetts will be at the expense of the providers.  This approach needs to be watched carefully, since it may be adopted in implementing the ACA.

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