By Lucas Willard
http://stream.publicbroadcasting.net/production/mp3/wamc/local-wamc-998952.mp3
Pittsfield, MA – The Retailers Association of Massachusetts and the Massachusetts Association of Chamber of Commerce Executives - or MACCE - are the first two organizations approved to communicate with insurance companies on behalf of their members since the law was signed sixteen months ago by Governor Deval Patrick. Massachusetts Commissioner of Insurance Joseph Murphy explains
The Retailers Association and MACCE were the first approved out of many that applied. Murphy says the Division of Insurance is hoping to approve more applicants within the next six weeks.
In the sixteen months since the law cleared the way for businesses to band together to negotiate insurance prices, the Division of Insurance identified that rising health insurance costs are the fastest growing obstacle for small business. Massachusetts has held a mandate that businesses obtain health insurance for all employees since 2005.
John Hurst, president of the Retailers Association of Massachusetts says that big businesses can obtain insurance for lower prices than small business, and that his organization's recent approval will help fight high costs.
Tom O'Rourke, CEO of MACCE says the first steps of negotiating with the state's health insurance companies will begin promptly.
The common goal for the cooperatives to negotiate rates is April first, a date where insurance programs are commonly renewed
Wellness programs for small businesses are encouraged to help further reduce rates - anything from a non-smoking program, to weight loss and other wellness initiatives.
State Senator Benjamin Downing welcomes the approval of The Retailers Association and MAACE, but says the work is not yet done on improving the affordability of healthcare in Massachusetts.
Under the law, up to six cooperatives can be formed to represent the Commonwealth's small businesses in the negotiation for health insurance rates. Up to 85,000 small businesses in Massachusetts will have the ability to join a cooperative.