Massachusetts Business Groups Divided Over How to Reduce Healthcare Costs

Massachusetts’ largest business groups, which allied to promote the passage of the 2006 law that expanded health insurance coverage, are now divided over how the state should go about reducing healthcare costs, according to a Boston Globe report.

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Associated Industries of Massachusetts, a business trade group, has pushed for tighter controls on spending than suggested by the House or Senate. Its former allies, including the Massachusetts Taxpayer Foundation, a research organization for employers, say tighter controls could lead to over-regulation.

Advocates say controlling costs is a more complex issue than expanding coverage, thus the division among formerly allied groups. Richard C. Lord, president of Associated Industries of Massachusetts, said the issue is contentious because it relates to revenue and income. “Every dollar has an interest group that represents it,” he said.

Consumer groups are also divided on the issue: The Greater Boston Interfaith Organization has publicly called for greater cost controls, while Health Care for All has not advocated a particular spending target.

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