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The Boston Globe

GLOBE EDITORIAL

Beyond the health pool
February 15, 2006

THE UNCOMPENSATED care pool, which pays hospitals and health centers to care for the uninsured, has grown into an $800 million behemoth that needs to be reorganized and shrunk as part of healthcare legislation being considered at the State House. Inspector General Gregory Sullivan, acting at the behest of the Legislature, has performed a valuable service by exposing the shortcomings of a program that was not meant to be what it has become -- a makeshift, incomplete health insurance system.

To be sure, the pool has paid for much high-quality medical treatment. Sullivan, in a telephone interview yesterday, said almost all the care is being provided to people of limited means who lack health insurance. Attorney General Thomas Reilly is investigating the possibility that hospitals may have intentionally overbilled the state, but Sullivan doubts there was any criminality.

What the inspector general did find was a sloppy billing system with few of the oversights the state has imposed on Medicaid, its comprehensive health insurance for the poor. The pool often paid better than Medicaid for the same procedure because the state underfunded the latter. Medicaid rates need to be raised to reflect the cost of care.

The pool is a vestige of 1980s hospital regulation, when the state took a bit off the top of hospital rates for insured people to make sure the uninsured got care. Since the pool was created, the Cambridge Health Alliance and Boston Medical Center have become expert at addressing the special problems of the uninsured, and they have gotten a disproportionate share of pool payments.

The pool only pays for treatment at hospitals and health centers. There is no emphasis on the preventative measures and routine office visits allowed under Medicaid or private insurance plans. The money would be better spent on regular health coverage.

The Legislature is working on a bill that would do that, but it is delayed by disputes over how many people will get insurance and who will pay for it. Legislators ought to resolve this with a compromise that mandates that everyone in Massachusetts be covered. Most pool money should be reserved for coverage with enough left to address urgent care for illegal immigrants and those who somehow slip outside of the mandate. And payment should be regularized on the Medicaid model.

The Cambridge Health Alliance, Boston Medical Center, and other hospitals that rely on the pool should be protected during the transition, and special programs for the uninsured maintained if they have value as these people get new health coverage. The pool has allowed Massachusetts hospitals to provide high-quality care to deserving people, but it must give way now to a better system.

 

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