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Should Hospitals Pay For Small Business Health Insurance Plans?

For now, this is only happening in Massachusetts, but it could spread nationwide: hospitals are now required to make a one-time contribution to a fund that subsidizes the purchase of health insurance plans by small businesses. They will pay the insurers directly, and the health insurance companies will refund eligible businesses for two years.

After only one major hospital system–Partners HealthCare–agreed to contribute voluntarily, the State Senate President included a provision that forces them to pay $100 million to the fund. The amounts will be split based on the hospitals’ profit margins and the makeup of their patient populations.

According to supporters, small business health insurance premiums will drop by 2.5% as a result of the subsidy–although they acknowledge that it’s only a temporary solution. Detractors, including the Massachusetts Hospital Association, are worried that the mandatory assessments will negatively impact the finances of and quality of care from their facilities.

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