The health insurance industry was rocked recently with the news that two Massachusetts health insurance providers are being investigated for collusion. Partners Healthcare and Blue Cross and Blue Shield of Massachusetts are accused of making deals off the record in 2000 which were crafted to bring higher rates for state health insurance plans. The office of the Massachusetts Attorney General Martha Coakley is leading the investigation.
The investigative reporting team from the Boston Globe reported that BCBS paid large premium increases over the years to Partners Healthcare, which would cover health care charges for their policyholders. Partners was to agree to seek similar high rates from other state insurance companies in the agreement. It was reported that Partners asked for $193 million over a three year period, but BCBS was wary of such a high amount because it could lead to significant rate increases for consumers. Partners reported their intent to go after similar large increases fromother insurers, so BCBS agreed to the deal.
The crack investigative team at the Boston Globe found that Blue Cross pays about 30% more to Partners Healthcare hospitals than it pays to hospitals not owned by Partners. Nine years after the scheme was hatched, BCBS, the state's largest insurance carrier pays $2 billion annually to Partners Healthcare, the state's largest provider of health care.
Much of the money that is being paid to Partners Healthcare comes directly out of the pockets of the Massachusetts policyholders, unfortunately. By undertaking such an important investigation, the state attorney general is fulfilling an important role, through this examination of power abuse between major insurance providers and health care providers.
Partners Healthcare is the largest health care provider in the state. They own major Massachusetts hospitals including Brigham and Womens Hospital, Newton-Wellesley Hospital and Massachusetts General Hospital. They also operate as a teaching affiliate to Harvard Medical School. - 15224
The investigative reporting team from the Boston Globe reported that BCBS paid large premium increases over the years to Partners Healthcare, which would cover health care charges for their policyholders. Partners was to agree to seek similar high rates from other state insurance companies in the agreement. It was reported that Partners asked for $193 million over a three year period, but BCBS was wary of such a high amount because it could lead to significant rate increases for consumers. Partners reported their intent to go after similar large increases fromother insurers, so BCBS agreed to the deal.
The crack investigative team at the Boston Globe found that Blue Cross pays about 30% more to Partners Healthcare hospitals than it pays to hospitals not owned by Partners. Nine years after the scheme was hatched, BCBS, the state's largest insurance carrier pays $2 billion annually to Partners Healthcare, the state's largest provider of health care.
Much of the money that is being paid to Partners Healthcare comes directly out of the pockets of the Massachusetts policyholders, unfortunately. By undertaking such an important investigation, the state attorney general is fulfilling an important role, through this examination of power abuse between major insurance providers and health care providers.
Partners Healthcare is the largest health care provider in the state. They own major Massachusetts hospitals including Brigham and Womens Hospital, Newton-Wellesley Hospital and Massachusetts General Hospital. They also operate as a teaching affiliate to Harvard Medical School. - 15224
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