Blue Cross Blue Shield of Massachusetts Provides Testimony at Senate Hearing in Washington

Business Editors/Healthcare Editors

BOSTON--(BUSINESS WIRE)--September 23, 2008--Blue Cross Blue Shield of Massachusetts’ Executive Vice President Andrew Dreyfus testified today before a congressional committee that’s examining potential options for reforming the health insurance market.

The Senate Finance Committee invited Blue Cross Blue Shield of Massachusetts (BCBSMA) to the hearing because of the leading role BCSBMA and the BCBSMA Foundation played in Massachusetts’ historic health care reform. The Committee is holding a series of hearings this fall as it prepares for congressional action on health reform next year.

In prepared remarks, Dreyfus pointed to the law’s success in extending health coverage to more than four hundred thousand Massachusetts residents who were previously uninsured. However, he added that the law’s long-term success is being threatened by the continued rise in costs. “Without durable solutions that slow the growth of health care costs,” said Dreyfus, “our historic coverage expansions will be placed at risk.” Dreyfus said the new law contained several market reforms that allowed private insurers to develop more affordable products. He said one such reform – the merger of the individual and small group market – saw rates for individuals drop by 15% while rates for small groups rose approximately 2%. Dreyfus said the small group increases could have been offset by reinsurance funded outside the health insurance system.

In his testimony, Dreyfus told Senators Blue Cross Blue Shield of Massachusetts believes the most promising way to slow health care costs over the long-term is by improving the quality, safety, and effectiveness of the care patients receive. He said changing the current provider payment system to reward quality over quantity is a pivotal part of any effort to slow costs. Dreyfus shared details of the company’s innovative new alternative quality contract which pays hospitals and doctors based on the outcome of the care they provide, not just the amount of care. He told Senators that lasting payment reform will require a significant role by the federal government, especially in Medicare.

You can read more about Blue Cross Blue Shield of Massachusetts’ innovative efforts to improve the quality and affordability of health care by visiting www.bluecrossma./quality .

Blue Cross Blue Shield of Massachusetts (www.bluecrossma.com) was founded 72 years ago by a group of community-minded business leaders. Today, headquartered in Boston, BCBSMA provides coverage to approximately 3 million members. BCBSMA believes in rewarding doctors and hospitals for delivering safe and effective care, and in empowering patients to take more responsibility, become educated health care consumers and become stronger partners with their doctors. Blue Cross Blue Shield of Massachusetts is an independent licensee of the Blue Cross Blue Shield Association.