MHTC Health Care Principles
June 22, 2005

• Increase access without employer mandates, new taxes.  In addressing the nearly 500,000 uninsured residents of the state, we must not impose new taxes and costs on businesses or on the residents of the Commonwealth.  The state should instead embrace a carrot approach that encourages employers to offer health care coverage to their employees through tax credits or other methods.  While we are pleased that Senate President Travaglini’s bill stops short of imposing an employer mandate, the so-called “free rider” charge to the Uncompensated Care Pool creates a slippery slope and could result in a back-door future tax on employers who already provide adequate health coverage.  Instead the state should further tighten its eligibility regulations for the pool and reimburse community health centers at an appropriate level below that of acute care hospitals.  Also under consideration should be Gov. Romney’s proposal to allow pre-tax purchase of coverage for individuals. 
  
• Create a system for cost and quality transparency.  Transparency in the state’s health care delivery system is vital so that patients, employers, insurers and providers understand the cost inequities and quality of services at health care centers throughout the state.  In every other area of business, consumers can have access to pricing and quality differentials that exist throughout the marketplace, and then make decisions accordingly.  Providing the proper level of information to payers and patients will allow for proper investment and efficient allocation of health care resources across the system.
  
• Support the expansion of health care technology.  The use of technology in health care delivery rated in the top 10 priorities for technology CEOs this year.  While technology CEOs view the recent e-health initiative from the Mass. Technology Collaborative as a way to create a safer, more efficient and cost effective health care delivery system, they also see it as an important business opportunity for technology firms.  Worldwide leaders with a strong presence in Massachusetts like Philips Medical Systems, Siemens and Millipore are creating innovations that improve lives and the quality of care for people across the globe.  
  
• Reform the state’s medical malpractice system.  The high cost of professional liability insurance for doctors is creating a shortage in many medical specialties in Massachusetts and is a looming crisis for the state’s health care system.  True reform of the state’s medical malpractice system, including a hard cap on non-economic damages, is needed immediately.
  
• Base nurse staffing ratios on medical need.  Legislation mandating nurse staffing ratios as proposed by the Mass. Nurses Association is a bad idea and will hurt hospitals that already have serious financial issues.  Decisions based on staffing should be flexible and evolving and made on the best medical judgments of hospital administrators and nurse executives.
  
• Assure hospitals and doctors proper levels of Medicaid reimbursement. Hospitals currently receive 80 cents on the dollar for services rendered for Medicaid patients.  Boosting the reimbursement rate to appropriate levels would give hospitals the financial flexibility to invest in capital upgrades and keep costs down for its payers.  Under funding Medicaid or the Uncompensated Care Pool results in added costs passed along to health plans and employers, and is a threat to the future of our local health care industry.