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Massachusetts Senate backs bill to contain health costs

AP/Boston Globe, May 19, 2010
Wealthier hospitals would be required to make a one-time $100 million contribution to ease insurance premiums for smaller businesses under a bill the Massachusetts Senate passed. The bill would let businesses with 50 or fewer workers form cooperatives to purchase insurance at a lower cost. Another provision presses insurers to spend at least 90% of premium dollars on care and 10% or less on administrative costs. Senate President Therese Murray said the bill will ease instability in the insurance market, smooth out annual fluctuations in premiums, and require insurers to offer affordable small-business plans.