Massachusetts Passes Health Cost Control Bill – Kaiser Health News

The Bay State does another first in health care reform.  First with a state-based health insurance exchange and a mandate that everyone have health coverage.  Now the first state to attempt to bend the health care cost curve by force of law, albeit a paper tiger according to the story.

Here’s an excerpt from the story by WBUR and Kaiser Health News:

Under the new law, hospitals and doctors will have to cut their rate of cost growth about in half. So, instead of going up 6 to 8 percent per year, costs would only be allowed to rise 3.6 percent per year.

“No other state has tried to tie health care costs to the state’s economy,” said Massachusetts Association of Health Plans President Lora Pellegrini. “This is going to be really revolutionary and very important and I’m sure the nation’s watching.”

Michael Widmer, with the Massachusetts Taxpayers Foundation, says he thinks the health care industry will embrace the bill’s spending goals, even though they are what he considers aggressive.

“But on the other hand the legislation does not include triggers or punishments if the targets aren’t met,” he said.


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