The agency that oversees the state's health insurance law is asking insurers to cut rates for 160,000 residents who receive state-subsidized care.
The Connector Authority is facing soaring costs, vanishing resources, and an expected jump in enrollment.
With a projected $82 million gap, the authority's board on Thursday approved a major change in how it will do business with insurers in the Commonwealth Care program. The approach encourages competition and will reward the lowest-cost insurers by giving them the most customers.
Massachusetts regulators say paring costs will keep co-payment increases modest and ensure quality coverage.
Health care advocates are concerned that rate cuts could mean insurance plans with a narrower choice of hospitals and physicians and more restrictions on the use of specialists.
This program aired on February 11, 2011. The audio for this program is not available.