Mass. health plan review: "mixed"

Feedback so far on the effectiveness of the new Massachusetts health care reform law is "mixed", according to a new report by Standard & Poor's Ratings Services.

The report is titled, "Do Massachusetts Health Care Reform And California Proposals Foreshadow A National Plan?"

"We are monitoring the Massachusetts law's progress to determine if the commonwealth's not-for-profit hospitals, health systems, and the commonwealth overall are under financial pressure," Standard & Poor's credit analyst Jennifer Soule said in a statement. "Our credit concerns are whether the funding currently allocated for the law will be sufficient to cover the full cost of implementing it over time and how any funding shortfalls, either near- or long-term, may affect the commonwealth's financial position and the profitability of its providers."

To date, the law hasn't caused Standard & Poor's to take rating action on the commonwealth, or any of its stand-alone hospitals or health systems, and health care reform is still viewed as credit neutral on the commonwealth's credit quality, the ratings services said.

The law's impact in Massachusetts is being watched closely by officials in California, where health care reform proposals are on the table, Standard and Poor's said, and there's national interest as well because of the possibility that the next president could propose a national health care coverage plan that takes some cues from the Massachusetts law.
(By Chris Reidy, Globe staff)