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FOR IMMEDIATE RELEASE
April 7, 2005

Senate files comprehensive effort to cut health care costs
Bill offers market reforms, targeted investments and long-range savings

BOSTON - State Senate President Robert E. Travaglini today filed legislation that fulfills the promise he made last November to secure health coverage for half of the 530,000 uninsured within two years. The Senate initiative also takes the first steps in controlling spiraling health care costs, makes targeted investments to expand access and institutes reforms to improve the delivery and quality of medical care.

"In the six months since we first announced the Senate's intention to seek affordable health care for all our citizens, I feel even more strongly today that it is the right thing to do," said Senate President Travaglini. "We have the best medical institutions and brightest doctors in the world. Our duty is to ensure that as many people as possible have access to the medical care they offer."

The Senate Proposal was co-sponsored by Senate Ways & Means Chair, Senator Therese Murray, Health Care Financing Chair, Senator Richard T. Moore and Community Development and Small Business Chair, Senator Harriette L. Chandler. It adopts the following three pronged-approach in fixing the Commonwealth's existing health care system so that it continues to take care of the sick, the poor and the uninsured without new taxes or employer mandates.

Market Reforms

There are 170,000 people in Massachusetts who cannot afford health insurance. The Senate's answer is to give private insurers more flexibility to offer a broader range of products by:

  • Loosening restrictions on insurance plans and creating incentives.

  • Requiring health plans to offer coverage to young adults up to age 25

  • Offering individuals a tax deduction for health savings accounts.

  • Placing a moratorium on mandated benefits and study whether health insurance should be required. 

"This proposal takes a necessary first step in working to provide health care that is affordable and accessible to all Massachusetts residents, while moving to control escalating health care costs," said Senator Murray, the Senate's budget chief. "This is an open process and we will continue to work with all of the stakeholders to make sure that affordable, quality health care is available to everyone."

Targeted Investments

The Senate will invest in a three-year campaign to expand coverage and improve access to health care
insurance by:

  • Reforming the Insurance Partnership

  • Boosting Medicaid Rates for hospitals, health centers and doctors.

  • Expanding Medicaid enrollment for over 110,000 who are eligible.

  • Instituting a free-rider surcharge on employers and employees who game the free care pool. 

Senator Moore said, "This plan places Massachusetts in the forefront of health care reform by making health insurance more affordable, quality health care more accessible, and the health system more accountable than ever before. We look forward to further dialogue with all the stake holders as we fine tune this exciting legislation."

Long-term Savings and Public Health

Cutting double digit inflation in health care costs will take time. The Senate invests in programs to
improve health care quality and improve efficiencies to reduce costs over the long term by:

  • Restoring funds for prevention program like cancer screening.

  • Establishing a State Board and website to allow consumers to compare costs and benefits. 

  • Require hospitals to adopt voluntary safe staffing levels for interns, resident and fellows. 

  • Promote long-term care insurance. 

"This comprehensive health care initiative will benefit citizens from every age group. The long-term care standards in the plan will promote a market that offers better quality, availability and choice with respect to long-term care policies," Senator Chandler added.

"A major component of the Senate remedy for our ailing health care system promotes public health and boosts our economy," said Senator Susan Fargo. "Preventing illness will be a big payoff for the health care sector which generates over $30 billion in economic activity and 12 percent of the state's jobs."

Senate President Travaglini called on the support of the business community in tackling one of the most daunting challenges in the Commonwealth today. But he warned that anticipated cutbacks in federal funding for health care could derail the collaborative effort to bring affordable health care to all citizens.

"All of us have an obligation to begin a real dialogue on fixing what is broken in our health care system. No reasonable person would suggest that we can painlessly fix these problems, but we can take the first steps and commit ourselves to moving as quickly as possible to providing affordable health care for everyone who needs it." 

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