I believe this is one of the most harmful pieces of legislation passed by the Legislature in recent memory.
In what the Boston Business Journal called "Soviet-style" health cost control legislation, Massachusetts added a tremendous level of bureaucracy and red tape on an already regulation-strangled healthcare industry. The Wall Street Journal noted that while everyone is trying to deliver healthcare more efficiently and be more accountable, this legislation makes hospitals accountable to government bureaucracy and not patients.
This legislation will reduce access to healthcare, and, through $225 million in taxes, hurt our world-renowned teaching hospitals and reward underperforming hospital organizations through a redistribution of wealth.
It’s no wonder Moody’s Investment Services wrote the following in a credit analysis of the new law: “The Legislation is credit negative for Massachusetts Hospitals … It will use an excise tax on insurers to support smaller and less profitable hospitals, potentially allowing them to remain in business longer than would otherwise be possible and limiting the ability of larger systems to consolidate and grow through acquisitions.”
This was another case of big government taking over the free market, and patients and consumers will suffer as a result.