The League of Women Voters of Massachusetts (LWVMA) strongly urges that you vote S. 476, “An Act to Promote Efficient Revenue Use by Certain Healthcare Providers” out of your Committee and support its passage by the entire General Court of Massachusetts.

We do so because the Commonwealth pays premiums, in whole or in part, to health insurance companies who provide healthcare coverage to low and moderate-income residents.  Requiring that 90% of these premiums be used for actual health care, rather than for advertising, marketing, CEO salaries, and other administrative costs, will be a significant service to Massachusetts taxpayers through lowered premiums.  Many of these insurers work well within this margin, so we know it can be done.

Massachusetts health reform has been successful in decreasing the number of uninsured residents from approximately 10% to approximately 2.6% .  Now we must begin to tackle the next, more difficult, stage of this reform.  Without cost controls, subsidizing health-care coverage will become unaffordable, and Massachusetts will have to abandon its efforts to insure that all its residents have access to adequate, affordable health care. 

The LWVMA believes that the people of Massachusetts deserve the efficient and economical delivery of health care, which the cost control measures in this bill will help to achieve.  Please do everything in your power to see that this bill is passed and implemented as written.