Post Content

Joseph G. Murphy, Commissioner of InsurancePosted by:
Commissioner Joseph G. Murphy, Division of Insurance

Along with getting a sense of the size of increases small businesses are seeing in health insurance, one of the main goals of this week’s hearings around the state is to gauge response to Governor Patrick’s recnt reform plans for small-market health insurance.

Throughout this week of hearings, we have heard business owners and insurance agents (many of whom are small-business owners themselves) express support for many of the Governor’s ideas – particularly limited provider networks, eliminating “jumpers and dumpers,” and aggressive review of proposed rates. 

These proposed reforms would provide more affordable options for small businesses which are experiencing big increases.  These increases are stifling small businesses and forcing them to make tough decisions. For example, today, Debbie Zabroski said her insurance was jumping from $522 to $750 per month. Self-employed, Debbie was considering making some home improvements this year, but after sitting down and reviewing her budget, realized she would need to spend the money on health insurance instead.

Many small business owners have talked about creating group purchasing cooperatives, which the Governor asked us to investigate. Christine Sullivan, Director of the Enterprise Center at Salem State College and former Secretary of the Office of Consumer Affairs and Business Regulation, spoke passionately in favor of cooperatives today. We continue to investigate cooperatives, the pros and cons, and the hazards of potentially segregating the market between healthy and non-healthy members. We expect to have a report on this issue later this month.

The Governor’s filed legislation includes the creation of selective network products, which would narrow provider choices but also provide lower-cost options in the small market. The legislation also includes creating limited open enrollment periods, which would discourage “jumpers and dumpers” – people who enter higher-priced plans only when planning on using expensive services, and then jump out when they are done. From what we’ve heard in the last four days, all of these ideas have captured the public’s attention and many small-business owners feel they can be part of a successful reform of health insurance in Massachusetts.

Written By:

Recent Posts

Independent Sellers at Online Marketplaces: Tips for Buyers & Sellers posted on May 27

Many buyers and sellers use online marketplaces, which allow products or services to be offered by multiple third parties and usually provide a means for payment to be processed directly on that website. There are the big name marketplaces, such as eBay or Amazon, but   …Continue Reading Independent Sellers at Online Marketplaces: Tips for Buyers & Sellers

Designating a Health Care Proxy posted on Apr 16

April 16th is National Health Care Decisions Day; and a good time to recognize how important it is that you are able to make educated health care decisions. In the case that you are unable to do so, it is crucial to have designated a   …Continue Reading Designating a Health Care Proxy

Understanding Medical Bills posted on Apr 10

Understanding Medical Bills

Whether it’s for a routine physical or an emergency ER visit, everyone receives medical bills. While extremely common, these bills are often unclear and difficult to decipher. Oftentimes, medical bills use codes and shorthand to describe the services you received, making it difficult to tell   …Continue Reading Understanding Medical Bills