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 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 operates as a teaching affiliate to Harvard Medical School, and are the largest health care provider in the state. They own and operate Massachusetts General Hospital, Newton-Wellesley Hospital and Brigham and Womens Hospital.
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 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 operates as a teaching affiliate to Harvard Medical School, and are the largest health care provider in the state. They own and operate Massachusetts General Hospital, Newton-Wellesley Hospital and Brigham and Womens Hospital.
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