Healthcare
Bill Passes; Mass May Be First State to Force Insurance on Individuals
Legislation designed to
deliver health insurance to 95 percent of the uninsured that would
not only assess a new tax on business, but would also force people
in the state to buy health insurance whether they wanted it or not,
has passed in both the state’s House and Senate, and is on Gov.
Mitt Romney's desk.
The
Senate 37-0 approved the bill, and the House yesterday lent final
approval on a vote of 155-2. The bill requires residents to purchase
or obtain an insurance product by July 1, 2007 or face financial penalties
of up to $1000. The bill combines expanded entitlement programs like
the fraud-wrought Medicaid program (MassHealth), new state subsidies
and federal funds, and newly permissible insurance products to expand
insurance access.
DiMasi cautioned that should
the bill be signed into law, implementation would require cooperation
across a spectrum, including the state and federal governments, health
care providers and insurers, employers and individuals. Resistance
from any group will threaten the bill's ambitious objective, he said.
“This is only the
beginning,” said DiMasi. “If people resist this bill,
it will not be successful.”
In a press release earlier
in the week, Gov. Mitt Romney called passage of the bill “a
landmark day for Massachusetts.” Romney was previously opposed
to the new $295 tax per uninsured employee on businesses, but has
apparently resolved that by convincing himself that it is an “assessment”,
not a “tax”. It is believed that Mitt Romney will showcase
this “universal” healthcare bill as one of his accomplishments
in Massachusetts while he seeks higher national office.
The plan also includes some
type of cost-control measures that have yet to be worked out. Hospitals
and physicians will be expected to have their Medicaid reimbursements
attached to a “pay for performance” scheme that is still
undisclosed in terms of details. Critics point out that legislation
that regulates reimbursement may lead providers to lower the quality
of their service.
Despite the overwhelming
approval from legislators, there are a number of critics of the bill.
Yesterday, Citizens for Limited Taxation released a statement critiquing
the concept of the new “assessment” on businesses. They
stated:
“We object in principle
to the concept that employers should be paying for health insurance
at all. Business provides the jobs that provide not only the paychecks
of its employees, but all the revenue money for all state services.
It is foolish to jeopardize Massachusetts’s jobs while forcing
business to directly provide social services, in this case health
care. But as a small business that pays for health care for its four
employees, CLT recognizes the present tax advantages of providing
this benefit. However, we resent paying more than our share.”