PITTSFIELD, Mass. (WWLP) – A battle continues over millions of dollars for health insurance companies.
On Wednesday, Health New England’s Chairman told 22News a provision in the Affordable Care Act called Risk Adjustment, could cost his company up to $30 million this year.
That could lead to higher rates for subscribers.
Currently, Massachusetts insurance companies that have sicker patients would receive payments from the other insurance companies. Based on projections, Blue Cross Blue Shield would stand to benefit from Risk Adjustment.
Congressman Richard Neal told 22News it’s not a flaw in Obamacare, but something that could be fixed through a federal waiver.
“This is a legitimate argument that has been made by the Fallon Health Clinc and Health New England so there are two big constituent companies in Worcester and Springfield that are important to me, but most importantly they should not be penalized for the good work that they have done,” said Rep. Neal.
Congressman Neal sent a letter to Governor Baker in February expressing his concern about Risk Adjustment Provisions. Neal told 22News the next step is for Governor Baker to take this up with the Centers for Medicaid and Medicare Services who would ultimately be able grant any federal waivers.