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Israel as First Stop?

Obligatory Throat-Clearing: There are a number of excellent reasons for public sector officials to visit Israel. The point of this column is to question the Governor and the Mass Competitive Partnership’s prioritization of Israel as his first stop on a Massachusetts Trade mission, not to engage in any broader discussion. Today’s Globe discusses the Governor’s potential trade missions and reports that Israel is his first planned trip. (To be fair, it notes the Governor Romney planned a trip and that Governor Weld made 3 trips to Israel). Here’s my question: Why would you pick Israel first as a trade mission (note the qualifier ‘trade’, not political or cultural). Israel is Massachusetts’ 25th largest import and export partner. Based on the […]

The Boston Globe: State’s focus is too narrow for job creation

We need a new approach to put the hundreds of thousands of unemployed Massachusetts citizens back to work. We need to stop picking winners and losers, and stop making such concentrated, publicly funded bets on specific companies and industries.

Governor’s Budget & Plan for Cities

When it comes to the aspects of the Governor’s agenda that impact cities, the press has focused on two elements: 1) Cuts in local aid in the budget and, 2) The push to lower the union threshold in order to allow, or perhaps force, municipalities into the state’s Group Insurance Commission. While those certainly are newsworthy, there are two smaller intiatives that move the Commonwealth in the right direction on two fronts: A) local performance management and B) regionalization. Pioneer has been a vocal advocate for the state to be more aggressive in promoting these policy goals. Our Middle Cities Initiative has worked with 14 municipalities to improve data collection, to drive accountability and transparency– in order that local officials […]

Governor Patrick’s Budget on Health Care: Playing Around the Edges

Medicaid (MassHealth) The Administration is feeling the heat with the increase in Medicaid (MassHealth) spending. Without a doubt something needs to be done—as spending now accounts for almost 40% of the overall budget. That’s less money for schools, for cops, and for roads. I, among others, think the Administration is being too optimistic on how much they can save by tweaking things on the edges. Will they really get almost $10 billion from rebidding Medicaid contracts? The budget grants the MA Secretary of HHS authority to change benefits and eligibility in MassHealth when possible— however her actions are restricted by the many constraints placed on the state by the federal government in the stimulus and Obamacare. 33 Governors sent a […]

Implications of the Harvard Pilgrim-Tufts Merger

Today’s news brings word of a potential merger between Tufts and Harvard Pilgrim. For this observer, it raises the question of how much more concentrated the health insurance market will become if the #2 and #3 insurers are merged? The standard measure of market concentration is the Herfindahl-Hirschman Index, which is the total of the squares of each participant’s market share. In a pure monopoly, the 100% market share translates to an index score of 10,000. In an almost total atomized market (100 participants each with 1% shares), you get an index score of 100. To give a sense of perspective, the Federal Trade Commission considers a market with an HHI of between 1500 and 2500 to be moderately concentrated. […]