Governor Deval Patrick recently sent Massachusetts legislature a proposal to control the cost health care.
The Plan will allow the governor in Massachusetts Insurance Commissioner to reject rate increases by hospitals, doctors and insurance companies if the increases can be considered "unreasonable" as Wall Street Journal .
For example, if the insurance companies have rate increases for small businesses that are above 1.5 times the rate of medical cost inflation than the rate increase can be turned down.
In addition, health care providers and hospitals can not provide rates for insurers that are above the level of medical inflation. Likewise, insurance companies can not raise rates faster than inflation levels.
The proposal would also include other means to control costs by requiring health insurance companies to provide plans that have a limited network of health care providers. In addition to this, Governor Patrick wants to establish a two-year suspension on all new health benefits that mandate legislatures.
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