Call to freeze health premiums

BOSTON, Mass. (WWLP) - In response to rising double digit healthcare costs in Massachusetts, Healthcare For All, a leading healthcare consumer group, is calling on physicians and insurers to put a freeze on all base premium rates in the state for one year.

“You know people aren’t getting raises this year, my income isn’t going up and we think health insurance shouldn’t be going up next year also,” said Brian Rosman, a research director at Healthcare For All.

Between 2007 and 2009, private group plan premiums have increased annually in Massachusetts by 5 to 10%. At the same time, state reports say benefits were reduced.

The numbers aren’t lost to Governor Deval Patrick, who has throughout the year testified before lawmakers and urged physicians and insurers to find a solution to rising healthcare costs.

“Working families, small businesses, and governments alike are being squeezed every year by ever higher premiums,” said Patrick.

But industry leaders aren’t likely to put a cap on healthcare rates. Insurers are struggling with rising medical costs and physicians are facing a greater demand for their services. A freeze would likely mean dipping into their own reserves to offset the costs.

Nevertheless, in a time of austerity, when many families and workers across the country are being asked to take a pay cut, consumer groups say insurers and physicians shouldn’t be immune.

“The system is going to have to squeeze down more and people who work in healthcare are going to have to live with a little bit less and we think that’s doable,” said Rosman.

Healthcare For All says that while a one year premium freeze would be a short term solution, the long term solution would be to redesign how we pay for healthcare by rewarding quality outcomes.