An investigative reporting team for the Boston Globe recently uncovered a possible collusion case involving Blue Cross of Massachusetts and Partners Healthcare. The accusation involves the making of deals off the record in 2000 designed to raise health care rates across the state. Massachusetts Attorney GeneralMartha Coakley has begun an investigation into the matter.
The investigative reporting team from the Boston Globe reported that BCBS paid large premium increases over the years to Partners Healthcare, which would cover health care charges for their policyholders. Partners was to agree to seek similar high rates from other state insurance companies in the agreement. It was reported that Partners asked for $193 million over a three year period, but BCBS was wary of such a high amount because it could lead to significant rate increases for consumers. Partners reported their intent to go after similar large increases fromother insurers, so BCBS agreed to the deal.
The Boston Globe Spotlight investigative team reported that BCBS continues to this day to pay an estimated 30% more to Partners Healthcare hospitals than it pays to other hospitals. Nine years after the scheme began, the state's largest insurance carrier is paying an estimated $2 billion annually to the state's largest 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 biggest operator and owner of hospitals in Massachusetts. They operate several hospitals including Newton-Wellesley Hospital, Brigham and Womens Hospital, and Massachusetts General Hospital. They also serve as a teaching affiliate to Harvard Medical School.
The investigative reporting team from the Boston Globe reported that BCBS paid large premium increases over the years to Partners Healthcare, which would cover health care charges for their policyholders. Partners was to agree to seek similar high rates from other state insurance companies in the agreement. It was reported that Partners asked for $193 million over a three year period, but BCBS was wary of such a high amount because it could lead to significant rate increases for consumers. Partners reported their intent to go after similar large increases fromother insurers, so BCBS agreed to the deal.
The Boston Globe Spotlight investigative team reported that BCBS continues to this day to pay an estimated 30% more to Partners Healthcare hospitals than it pays to other hospitals. Nine years after the scheme began, the state's largest insurance carrier is paying an estimated $2 billion annually to the state's largest 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 biggest operator and owner of hospitals in Massachusetts. They operate several hospitals including Newton-Wellesley Hospital, Brigham and Womens Hospital, and Massachusetts General Hospital. They also serve as a teaching affiliate to Harvard Medical School.
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