The health insurance industry was rocked recently with the news that two Massachusetts health insurance providers are being investigated for collusion. Partners Healthcare and Blue Cross and Blue Shield of Massachusetts are accused of making deals off the record in 2000 which were crafted to bring higher rates for state health insurance plans. The office of the Massachusetts Attorney General Martha Coakley is leading the investigation.
The Boston Globe has reported that BCBS of Massachusetts has paid significant increases over the years to Partners Healthcare to cover policyholder health care. In the agreement, Partners would agree to seeking payment hikes of comparable size from other insurance companies in the state. Partners allegedly asked for $193 million over three years, but BCBS balked because it would raise rates too much for consumers. But Partners agreed to go after similarly large sums from other insurers, so BCBS of Massachusetts agreed with the deal
Additionally, the Globe Spotlight reporting team discovered that BCBS continues to pay an estimated 30% more to hospitals which are owned by Partners Healthcare than they pay to other hospitals. After nine years, BCBS, the state's largest insurance carrier, is paying an estimated $2 billion yearly to Partners healthcare, the state's biggest health care provider.
The Massachusetts policyholder is the one who is the unfortunate loser in the game, however. Much of the money that Partners receives comes directly out of their pockets. By undertaking this investigtation, the attorney general is fulfilling an important role by examining the unprecedented concentration of market power by health care providers and insurers. The effect the scheme has on consumers in Massachusetts has been negative in all respects.
Partners Healthcare is the largest health care provider in the state. They own major Massachusetts hospitals including Brigham and Womens Hospital, Newton-Wellesley Hospital and Massachusetts General Hospital. They also operate as a teaching affiliate to Harvard Medical School.
The Boston Globe has reported that BCBS of Massachusetts has paid significant increases over the years to Partners Healthcare to cover policyholder health care. In the agreement, Partners would agree to seeking payment hikes of comparable size from other insurance companies in the state. Partners allegedly asked for $193 million over three years, but BCBS balked because it would raise rates too much for consumers. But Partners agreed to go after similarly large sums from other insurers, so BCBS of Massachusetts agreed with the deal
Additionally, the Globe Spotlight reporting team discovered that BCBS continues to pay an estimated 30% more to hospitals which are owned by Partners Healthcare than they pay to other hospitals. After nine years, BCBS, the state's largest insurance carrier, is paying an estimated $2 billion yearly to Partners healthcare, the state's biggest health care provider.
The Massachusetts policyholder is the one who is the unfortunate loser in the game, however. Much of the money that Partners receives comes directly out of their pockets. By undertaking this investigtation, the attorney general is fulfilling an important role by examining the unprecedented concentration of market power by health care providers and insurers. The effect the scheme has on consumers in Massachusetts has been negative in all respects.
Partners Healthcare is the largest health care provider in the state. They own major Massachusetts hospitals including Brigham and Womens Hospital, Newton-Wellesley Hospital and Massachusetts General Hospital. They also operate as a teaching affiliate to Harvard Medical School.
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