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.
Blue Cross Blue Shield of Massachusetts agreed to pay more money to Partners Healthcare to cover the health care of their policyholders. For the additional money, Partners agreed to seek comparable rate hikes from other insurance companies, thus driving up the consumers insurance rates. The Boston Globe reported that BCBS initially balked at the amount, and only after Partners committed to requesting the same rates from other insurers, did BCBS finally agree to the deal.
The Boston Globe Spotlight investigative team reported that BCBS continues to this day to pay an estimated 30% more to Partners Healthcare hospitals than it pays to other hospitals. Nine years after the scheme began, the state's largest insurance carrier is paying an estimated $2 billion annually to the state's largest health care provider.
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. - 16492
Blue Cross Blue Shield of Massachusetts agreed to pay more money to Partners Healthcare to cover the health care of their policyholders. For the additional money, Partners agreed to seek comparable rate hikes from other insurance companies, thus driving up the consumers insurance rates. The Boston Globe reported that BCBS initially balked at the amount, and only after Partners committed to requesting the same rates from other insurers, did BCBS finally agree to the deal.
The Boston Globe Spotlight investigative team reported that BCBS continues to this day to pay an estimated 30% more to Partners Healthcare hospitals than it pays to other hospitals. Nine years after the scheme began, the state's largest insurance carrier is paying an estimated $2 billion annually to the state's largest health care provider.
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. - 16492
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