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Healthcare Financial News - Massachusetts Shows Importance of Cost Control in Reform

Healthcare Financial News


Thursday, May 28, 2009
Massachusetts Shows Importance of Cost Control in Reform

Massachusetts’ experience shows that although major expansions in coverage can be achieved without addressing healthcare costs, cost pressures have the potential to undermine the gains under reform, according to a study published on the Health Affairs web site. The study finds that Massachusetts has sustained gains in insurance coverage and access to care stemming from its landmark 2006 health reform, despite hard economic times. Some of the early gains in reducing barriers to care and improving the affordability of care had eroded by the fall of 2008, however, roughly two years after the Bay State began implementing the legislation signed into law in April 2006.

Massachusetts is addressing the challenges of cost control and delivery-system constraints through new legislation signed by Gov. Deval Patrick in August 2008. Under this legislation, Massachusetts is preparing to undertake fundamental reform of its delivery system, moving away from fee-for-service to a global payment system that emphasizes care coordination and collaboration.

posted on 5/28/2009 5:53:03 PM (CST)  Permalink