“Month after month, the Connector has spent millions of
dollars trying to create the Taj Mahal of insurance websites while many
consumers’ coverage is at risk,” said Senator Tarr. “Now the agency wants to
continue on a two-track path that will cost millions more and jeopardize the
health insurance policies of even more people, even though we had a system that
worked to begin with.”
Senator Tarr went on to say “If the federal government is
sincere in its claims that Massachusetts has been a model that should be
recognized and accommodated, then it should be more than willing to grant a
waiver to allow us to return to a system that previously worked to secure
coverage for 98% of our residents and cost only $10 million to build. We should
be rewarded for that accomplishment, not punished.”
Regarded as the model for the nation’s federal health care
plan, the Massachusetts Health Care Connector led to over 98% of the
Commonwealth’s residents having health care insurance coverage. To transition
the citizens of the Commonwealth to the then newly created plan, the state
built a website that cost less than $10 million to design; however, in an effort
to comply with the federal act, Massachusetts has now spent nearly a half
billion dollars in public funds. Expenditures to comply with the federal health
care law include:
• $270 million in federal grants to implement the Affordable
Care Act;
• $120 million for the continued usage of Commonwealth Care
plans; and
• $50 million to pay Optum, a health care technology company
base in Minnesota, for assisting with an application backlog.
The massive website boondoggle has led many Massachusetts’
citizens to submit paper applications and/or have been placed on temporary
Medicaid until the state is able to determine the appropriate coverage, causing
a spike in health care costs. Now there are plans to completely scrap the first
federal care exchange attempt, which cost over $100 million in public funds,
and to spend an additional $100-$145 million on a new website exchange.
Recently, the federal government has demonstrated flexibility regarding the Massachusetts Health Care Exchange by consenting to extensions such as rating factors and the grace-period for calendar year plans.
Unfortunately, the Senate Republican Caucus was unable to secure the needed votes for the amendment, which failed by a roll call vote of 4-33 along party lines. Despite the rejection of today’s amendment, Tarr and the caucus remain steadfast in their commitment to returning to a system that works rather than endlessly pursuing one that may not.
Next week the Senate will debate a $36 billion state budget
proposal for Fiscal Year 2015, where the caucus plans to file many amendments
that highlight fiscal responsibility, transparency, and accountability.