July 26, 2010
BOSTON — State Representative Jen Benson yesterday joined her colleagues in the Massachusetts House of Representatives in passing legislation designed to control health care costs for small businesses.
"Working families and small businesses continue to suffer from rising healthcare costs," said Benson. "This legislation is a first step towards controlling those costs. It will bring immediate savings to employers and employees faced with drastic health insurance premium increases."
Benson cosponsored and succeeded in passing an amendment to allow small businesses to work together to purchase insurance at group rates, an area where small businesses were at a great disadvantage compared to large corporations. The amendment complements other pro-small business provisions such as increasing small business representation on the Health Care Quality and Cost Council. The Council is required to develop annual cost containment goals to promote affordable, high quality, patient-centered health care.
The legislation also requires carriers to submit rate filings to the Department of Insurance (DOI) at least ninety days before the effective date with sufficient detail so that the DOI may approve of the rates or disapprove if the rates are found inadequate, excessive or unreasonable in relation to the benefits provided.
Furthermore, the bill authorizes the Division of Health Care Finance and Policy (DHCFP) to review contracts for medical services between insurers and hospitals, physician group practices and imaging service providers to determine if payment increases are appropriate.
The legislation also allows patients access to prescription drug discounts, which will help lower costs for healthcare consumers.
"Rising healthcare costs are often responsible for preventing our Commonwealth's small businesses from growing and expanding," said Benson. "This legislation will help those businesses stand on a more level playing field and help them expand and create new jobs."
