Senate committee advances provider-assessment bill after debate over insurer fee’s effect on premiums

The Senate Committee on Finance and Revenue voted March 12 to move House Bill 2010A to the Senate floor with a due-pass recommendation after an extended work session focused on the state’s provider-assessment program and a proposed amendment to exempt certain payers.

Supporters and critics sparred over whether extending a 2% insurer assessment and a statewide hospital assessment would push individuals and small employers out of commercial coverage and into ERISA plans or the Medicaid program. Senator Caden, who led the amendment drive, said the assessment has driven a substantial payer shift and urged more study: “If you decrease a pool by 20 or 30% in premium to pick up 50 or a hundred million dollars you have really hurt the provider networks,” he told the committee.

The bill as drafted extends two assessments used to draw federal matching funds: an insurer…