The state Health Connector board yesterday voted to proceed with an Obamacare provision that small health plans say will move millions of dollars from them to the state's largest insurer based on flawed data.
"We remain very concerned about the impact it will have on the Massachusetts marketplace," said Eric Linzer, vice president of public affairs and operations for the Massachusetts Association of Health Plans. "Our preference would have been for the connector board to delay finalizing those regulations, given the ongoing data integrity issues."
The connector board voted to approve regulations to implement the Affordable Care Act's risk adjustment provision, which would require insurers to pay into a pool that would be distributed among companies based on the overall health of their members.
Smaller insurance companies have lamented that the data used to calculate this is imperfect, and say they will have to pay more, while larger insurers with sicker populations such as Blue Cross Blue Shield will reap the benefits.
The state is required by the federal government to start the process to adopt the risk adjustment provision this year, according to the connector.
But Linzer said state and federal agencies have compromised on other Obamacare issues, such as rating factors, and that the MAHP "would consider this to be in the same bucket."
According to a Blue Cross Blue Shield spokeswoman, "Nearly every major government program uses risk adjustment, including Medicare and Medicaid," and it is "standard practice" in the health care industry.
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