Massachusetts Health Insurers Taking Charge

May 24, 2010

Considering freezing or slashing payments to some hospitals and physician groups

Provider contract negotiations may become tough as health insurance carriers want to freeze or slash reimbursement rates to hospitals and large physician practices. Insurers believe they have widespread support from regulators to employers in this effort to combat rising healthcare costs. The end result could be more doctors and hospitals dropping out as network providers and patients having to find new doctors and hospitals. In response, hospitals argue they are struggling financially too.

The Obama administration has requested the Virginia challenge to health care reform be dismissed arguing that Congress has the right to regulate interstate trade. Virginia had adopted a law earlier this year stating that individuals could not be forced to purchase health insurance.

To read more on these and other healthcare stories, check out the May 25, 2010 NAHU Newswire.

<<- Return to News