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June 2006 | Back to Table of Contents

MMA News

Massachusetts Adopts Universal Coverage Law

In April, lawmakers in Massachusetts passed a law that mandates health insurance coverage—one of the main features of the health care reform plan the MMA proposed more than a year ago. When Massachusetts Republican Governor Mitt Romney signed the legislation, he made the New England state the first in the country to require all citizens to obtain health insurance. Massachusetts’ Mandatory Health Insurance program will become effective July 1, 2007.

The law is being heralded as a possible national model, since it passed with bipartisan support from both Democrats and Republicans. However, criticism has also come from both sides; conservatives say it’s government infringement on individual rights, and liberals claim it’s an unfair burden on the poor.

The legislation originally imposed a fee of $295 per uninsured employee on employers with more than 11 full-time workers. Romney killed that provision with a line-item veto.

The Massachusetts law is sure to provide grist for Healthy Minnesota: A Partnership for Reform, a diverse group of health care stakeholders who are tackling the issue of health care reform in Minnesota. The group plans to meet for the second time in June. Its 26-member steering committee is using the MMA’s reform plan as a starting point to develop a reform agenda that is set to be released before January 2007.

How does Massachusetts plan to cover its 500,000 uninsured residents?

  • 100,000 who are eligible for but don’t use Medicaid will be enrolled in the program.
  • 200,000 who make less than 300 percent of the federal poverty level (about $38,500 for a family of three) but are not eligible for Medicaid will receive sliding-scale premium assistance for low-cost private plans.
  • 200,000 with incomes above 300 percent of the federal poverty level will be able to purchase lower-cost policies in the private market.

Other features of the law:

  • Premium assistance will be financed by redirecting a portion of the $1 billion currently spent by the state on subsidizing the cost of caring for the uninsured.
  • Failure by individuals to purchase health insurance will result in the loss of their state tax refund equal to 50 percent of an affordable health insurance premium.
  • The state will create an entity called the Commonwealth Health Insurance Connector, which will help individuals find affordable health plans and purchase coverage on a pre-tax basis.
Source: Office of Gov. Mitt Romney


Court Keeps Cigarette Fee, Protects Public Health

Clean-air advocates breathed a sigh of relief last month when the Minnesota Supreme Court ruled that the 75-cents-a-pack “health impact fee” on cigarettes did not violate a 1998 settlement agreement with tobacco companies. The fee was put in place by the Minnesota Legislature last year.

MMA President David Luehr, M.D., says the ruling will benefit the public health of Minnesotans for years to come. The MMA supported the implementation of the fee because higher cigarette prices are one of the most effective ways to curb smoking.

“We’ve held all along that whether it’s called a fee or a tax, an increase in the price of cigarettes is one of the most effective ways to prevent kids from smoking. This ruling keeps in place a policy that will help prevent heart disease, stroke, and cancer,” Luehr says.

Reports Show Cost, Efficacy of Drugs

What is the best drug for the money? Often, neither physicians nor patients know the answer to that question.

That’s why the MMA Board of Trustees voted last month to partner with the Minnesota Senior Federation to help publicize Consumer Reports Best Buy Drugs, a series of reports published online comparing the cost, safety, and effectiveness of at least a dozen classes of drugs.

The reports are based on information from the Oregon Health & Science University Evidence-Based Practice Center, which contracts with research teams to review the best available evidence on the most commonly used drugs. Whereas drug trials typically test a new drug against a placebo but fail to provide information about how the drug compares with existing medications, the Consumers Union reports contain information about competing drugs. They also include picks for “best buys.”

For example, the report on non-steroidal anti-inflammatory drugs (NSAIDs) picks ibuprofen, naproxen, and salsalate, which cost between $24 and $50 a month, as its best buys, citing evidence that they are as effective as more expensive NSAIDs such as Celebrex, which costs $130 a month.

The reports, which are published online at www.crbestbuydrugs.org, present information in an easy-to-read format.

“We wanted to bring this information to a broader audience,” says Gail Shearer, health policy analyst for the Consumers Union.

Shearer hopes the reports will prompt patients to discuss drug options with their doctors so they can get the best drug for the best price.

She also hopes physicians will use the reports to bolster the case for generics and combat the influence of
direct-to-consumer advertising by drug companies.

MMA Lauds Soda Agreement

In May, the William J. Clinton Foundation brokered a deal with the nation’s largest soft drink distributors to stop the sale of high-sugar beverages in public schools.

The companies controlling 90 percent of the school soft-drink market, Coca-Cola, PepsiCo, and Cadbury Schweppes PLC, along with the American Beverage Association, agreed not to sell certain products to schools by the 2008-2009 school year.

The MMA and the MMA Alliance have supported banning sugary pop in school for years and belong to the Healthy Vending Coalition, which includes health care providers, child advocates, dairy farmers, and businesses. The MMA Alliance has also produced “Facts on Fizz,” a post-card-sized handout with reasons to pass on pop. Contact Vicki Westling at 612/362-3764 or 800/342-5662 for this valuable resource.

MMA Past President J. Michael Gonzalez-Campoy, M.D., Ph.D., FACE, says the agreement could significantly reduce obesity rates among children. However, it is not a panacea.

“We should be looking beyond just removing unhealthy beverages to helping to improve overall childhood nutrition and increase physical activity,” Gonzalez-Campoy says.

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