BOSTON -- Gov. Michael Dukakis, in a move critics claim could end the state economic boom that helped propel him into the national spotlight, has signed a bill making Massachusetts the first state to ensure access to affordable health insurance to all its citizens.
The three-term liberal governor and front-running Democratic presidential candidate signed legislation Thursday that phases in a 'universal' health insurance system over the next four years.
The law, estimated to cost between $600 million and $1 billion, requires most businesses with more than five employees to provide group insurance plans by 1992 or pay an unemployment tax surcharge that will finance the state-administered health plan.
'We have good reason to rejoice today, as we once again become the nation's laboratory, the nation's pathfinder, blazing a trail that leads to affordable, quality health care for every man, woman and child,' Dukakis told thousands of jubilant supporters who flocked to the Statehouse steps to watch him sign the bill.
'As an American, I don't want my country to stand alone with South Africa as the only two industrialized nations that do not provide basic health security,' he told the balloon-toting crowd, primed by a band that pounded out a rousing version of 'I Heard It Through the Grapevine.'
'I think it is unconscionable that 37 million of our fellow citizens -- most of them members of working families -- suffer this indignity,' Dukakis said.
Republican critics in the Democratic-controlled legislature warned the bill will force many small employers to go out of business and cause companies considering locating in Massachusetts to look elsewhere.
'Short-term gain and long-term pain, that's how I'd describe the bill,' said House Republican leader Steven Pierce, who battled the measure since it was proposed last August.
The program, aimed at extending coverage to about 600,000 uninsured people, is expected to increase the cost of all private insurance in the state, but eventually limit costs to individual businesses by forcing more of them to participate in the system.
It also sets up a new regulatory mechanism that will pump about $1 billion into the state's ailing $5 billion-a-year hospital industry and force about a half dozen under-used hospitals to close.
'For thousands of our fellow citizens, today marks the day when working families, the unemployed, the disabled, students and children with special needs don't go sick because they cannot afford to stay well,' Dukakis said.
The state's largest health insurer, Massachusetts Blue Cross-Blue Shield, praised the bill, but expressed concern over the large revenue increase granted hospitals.
'We believe every citizen has a right to needed health care,' said Blue Cross spokesman Clark Walter.
'While we are pleased a four-year legislative basis for hospital payment has been established, these new revenues will increase overall health care costs to consumers,' he said.
Dukakis introduced the bill last August, but it was killed in the House and was then completely rewritten by Senate Ways and Means Committee Chairwoman Patricia McGovern.
McGovern, a Democrat, forged an alliance of business leaders, insurers, hospital representatives and citizens groups that pushed the bill through the legislature by razor-thin margins in the House and Senate.
'Never again will a man, woman or child be denied a basic human right,' said McGovern.
