Governor Charlie Baker will sign a piece of legislation that imposes $200 million in higher fees on businesses to fund health care for the poor, which will please Democrats in the Legislature. Initially, Baker proposed a plan that would move 140,000 adults from MassHealth onto commercial health plans, which would’ve increased the cost of healthcare for those adults.
Businesses told Baker that they would agree to these higher fees if the state would reduce the cost of MassHealth, which accounts for $16 billion in annual spending. If Baker decides to sign this legislation, he risks denting his reputation as a business-friendly executive, but it is necessary to help ease the state’s budget crunch caused by rising health care costs. Baker realized that it was more beneficial for him to cut the cost of MassHealth by targeting businesses instead of low-income individuals, right call.
Source: Boston Globe