Not-For-Profit Providers Criticize Massachusetts Plan
Not-for-profit health care providers in Massachusetts expect increased financial burdens as more employees comply with a new state law requiring all individuals to obtain health coverage by July 1 or face tax penalties, the Boston Globe reports.
Officials at clinics, nursing homes and other providers said it will be difficult for them to offset the cost of providing coverage to all employees because their revenue is largely dependent on fixed federal and state reimbursements.
Before the law, most employees of small medical providers did not purchase insurance because of its cost, according to the Globe.
State officials said they are aware that many employers will face difficulty paying for coverage, but there are no provisions in the law to provide immediate relief.
Amy Lischko, commissioner of the Division of Health Care Financing and Policy, said it is possible that some small medical providers eventually will "absorb" the costs of providing coverage to more employees (Krasner, Boston Globe, 1/17).