This proposal comes at a good time. health insurance companies post their losses in the first quarter totaling over $ 150 million and blame tariff increase proposal to be unfair and unjustified by The Boston Globe . health insurers have had to draw on their reserves to cover their losses as they are afraid they will lose more this year.
Lora Pellegrini, president and CEO of the Massachusetts Association of Health Plans said "health plans do not collect enough premiums to cover their costs. These results confirm what we have said that the plans would lose millions of dollars from this scheme and it would not control the costs of the underlying health care. "
Massachusetts legislature is not only worried that health insurers have cash reserves, but that hospitals have cash reserves. It becomes an argument for legislators that hospitals can afford to pay $ 100 million because they have large cash reserves. Hospitals of course disagree and show losses up to $ 72 million in 09 and $ 114 million at the end of the year.
Always the underlying problem remains - how all this cost control healthcare Or is it just politics
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