Previous Page | Print this Document

January 7, 2006 - Efforts to reform health care have come to a grinding halt, as senators charged with formulating a compromise plan have refused to continue negotiations, questioning the funding available to pay for it. 

Their refusal came late this week, dangerously close to what some call a mid-January deadline by which the state must submit to the federal government a reformed health care plan that offers insurance to a greater number of state residents, about 500,000 of which are currently without coverage. 

Without reform, the state stands to lose $400 million as of July 1. 

"The stakes are huge," said Michael Widmer, president of the Massachusetts Taxpayers Foundation. "Ignoring the federal deadlines are just too serious." 

Widmer's group last month authored a report that questioned House's plan to fund its reform proposal, largely based on a so-called "payroll tax" that would charge fees to businesses that don't offer health insurance to employees. The House had originally estimated it could draw $650 million per year from that tax. MTF declared that number was closer to $175 million. 

The MTF report swayed the three senators on the conference committee. On Thursday, Sens. Richard Moore, D-Uxbridge, Therese Murray, D-Plymouth and Brian Lees, R-Springfield, sent a letter to co-member Rep. Patricia Walrath, D-Stow. They proposed bringing in an independent financial analyst to study the numbers and help determine what the state can truly afford before continuing in negotiations. 

The Senate is concerned with its own numbers as well, said Moore yesterday. 

"The letter didn't claim we had all the answers by any means," he said. "We need some good analysis (by an independent economist) that we can hopefully agree upon as a (spending) target." 

The letter infuriated some House members, who cited the code of silence that usually pervades a conference committee. 

"It's a breach of confidentiality," said Rep. Bob Hargraves, R-Groton, a conference committee member who said he was "shocked" when he heard about the letter. 

Despite the senators' actions, Hargraves said, he would continue to honor the agreement and declined to discuss details, including the financial disagreements. 

"(The deadline) obviously concerns me, and I can't go any further than that right now," he said. 

The state must submit its proposals to allow time for months of negotiations with the federal government before the new fiscal year starts. But Moore argued the deadline is only a "suggested" date, to ensure the federal government has 120 days to review the reform proposal before July 1. 

"If we can come to some final plan by early to mid-February, we would be in full compliance," he said. 

Widmer said he is disappointed, though not surprised the negotiations have stalled. 

"It's not as if this issue is going to go away. This is a rare opportunity to make some constructive changes in health care, and those opportunities only come along when the stars are aligned," he said. 

The other "stick" that might prod lawmakers to resolution, he added, is the threat of a ballot question scheduled for November. If approved, the ballot question -- written by Health Care for All, a lobbying group composed of business and community leaders -- would force the state to expand health care for all residents and pay for it using increased cigarette and alcohol taxes. 

"I think that the letter from the senators to the House is a concrete sign that this conference committee is not going well," said John McDonough, executive director of Health Care for All. "I think it's probably a cry to (House Speaker Sal DiMasi and Senate President Robert Travaglini) to get together and help these folks. The conference committee itself looks increasingly stuck in the mud." 

Previous Page | Print this Document