MA regulators: Did Blue Cross/Blue Shield and Partners HealthCare collude to fix prices and raise rates 75%?

DCblogger's picture

Partners, insurer under scrutiny

Attorney General Martha Coakley has launched an investigation into whether the state's largest health insurance company and its largest healthcare provider may have illegally colluded to increase the price of health insurance statewide over the last nine years, according to several legal and government sources.

The attorney general sent formal demands for information to Blue Cross and Blue Shield of Massachusetts and Partners HealthCare late last week, the sources say, calling for a detailed account of their contract negotiations in recent years.

Since 2000, Blue Cross has boosted the rate it pays for medical care by Partners doctors and hospitals by 75 percent, dramatically more than the increases given to most other Massachusetts hospitals. Blue Cross now pays $2 billion a year to Partners, parent company of Massachusetts General and Brigham and Women's hospitals.

Why do we put up with this?

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DCblogger's picture

headlines

I can't write a headline to save my life.

connecticut man1's picture

My headlines...

are usually what writes the story for me. Go figure? Everyone is different. Try this title on for size:

"Mass. Health Care Collusion Crisis"

Andre's picture

Here's the original story

in the Globe: http://www.boston.com/news/local/massachusetts/articles/2008/12/28/a_handshake_that_made_healthcare_history/

bendjamin's picture

It would help, I think, if

It would help, I think, if doctors, life insurance companies and hospital administrators were to take a lower percentage in their billing for services. The cost to the consumer would be immense.

This is a national problem, not just something to be handed to Federal government to solve. Everyone needs to come up with a solution.

I wonder how many kickback schemes pass between doctors and specialists, for example. These need to be examined and brought to light as well.

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