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Implications of the Harvard Pilgrim-Tufts Merger

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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. […]

Ever Met A Tax Incentive You Didn’t Like?

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Remarkable to read the Globe’s endorsement today of the latest ‘flavor of the month’ tax credit. The latest (remember nanotech, cleantech, life sciences, film production?) favored industry is video game production. Given the implosion of the Evergreen Solar deal, one would think that targeted tax incentives aimed at specific niche industries would have to pass a pretty high bar at this point. But the Globe apparently thinks the policy remains sound, despite the Evergreen setback. Their reasoning? The Globe falls back on its mantra-like recitation of ‘clean energy’. Clean energy is important, but it doesn’t justify high risk investments and its not going to signficantly move the employment needle. PS — In case, you were wondering — the Globe is […]

Feds plug the Money Hole in Massachusetts Health Reform?

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To close the loop from an earlier post on federal money being sent to safety-net hospitals in Massachusetts to balance their budget sheets, the State House News Service had this piece recently. FEDS OKAY $157 MILLION FOR MASS. HOSPITALS Massachusetts is due to receive $157 million in federal funds that will help trigger the release of $230 million in payments to hospitals that serve disproportionate shares of low-income and uninsured patients.  The funds are expected to provide state matches and free up the flow of funding to Boston Medical Center and hospitals in Brockton, Dorchester, Lawrence, Holyoke and Springfield.  Cambridge Health Alliance has already received about half of the $486 million in funds approved last October by federal government health […]

Contracting for Performance: Teacher Union Contract Langiage in Massachusetts

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Teacher Union Contract Langiage in Massachusetts Author(s): Pioneer Institute — Publication date: 2011-01-21 Category: Education Abstract: A study of teacher contracts in 25 Massachusetts school districts finds they range from “professional” to “factory” models, with high-achieving districts more likely to have contracts that give teachers flexibility to make decisions. Contracting for Performance

What we should we ask of the new UMass president?

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With former Congressman and current chancellor of the University of Massachusetts at Lowell Marty Meehan having pulled out of the running for the presidency of the overall UMass system, we are left with three finalists: Charles Bantz, the chancellor of Indiana University-Purdue University in Indianapolis, Robert Caret, the president of Towson University in Maryland, and Phillip Clay, chancellor of MIT IUPUI’s website trumpets that it is one of the top five “up and coming” American universities that U.S. News and World Report says people should be watching, and the 8th best public college in the Midwest according to Forbes magazine. IUPUI has a strong mix of undergraduate (22,000) and graduate and professional students (8,000). Its progress in raising the quality […]