In a convoluted statement, the Massachusetts Attorney General is proposing a variation of price controls on health care in the state.
AG Martha Coakley, who famously lost to Scott Brown in the Senate election of 2010, issued a report that recommended "at least setting temporary statutory restrictions on how much prices may vary for comparable services." In other words, she's recommending a cap on prices without calling the mechanism price controls.
The OAG report was issued in response to the rapid growth in Massachusetts health care costs following the passage of the state's reform package—dubbed Romneycare—in 2006.
Critics immediately countered the proposal by claiming the mechanism, rather than containing prices, would spur those at the lower end of pricing to raise their tariffs, leading to still more cost inflation.
The unfolding event is important to track since the federal Patient Protection and Affordable Care Act (PPACA) was largely modeled on the Massachusetts plan.
To help your employees better understand their rights and obligations under PPACA, please obtain and display a copy of Personnel Concepts' Health Care Reform Employee Information Poster.