April 25, 2024
Sarah Mills Joins AIM Government-Affairs Team
Associated Industries of Massachusetts has bolstered its government-affairs operation with the hiring of Sarah Mills, an experienced government-affairs…
Read MorePosted on July 31, 2012
A compromise health care cost containment bill approved on Beacon Hill this week takes a measured first step toward slowing the runaway health insurance premiums that have impeded job creation and economic growth for a decade.
House and Senate negotiators reached agreement yesterday on legislation that would limit the increase in medical spending in Massachusetts to a level equal to overall economic growth from 2013 until 2017. The spending growth target would drop to 0.5 percentage points below gross state product from 2018-2022 before returning to the economic growth benchmark in 2023 and beyond.
A state commission will have the authority to soften the cost control objective if circumstances warrant. The Massachusetts economy has been growing at 3.7 percent annually in recent years, while medical spending rose at between 6 and 7 percent prior to the economic downturn.
The legislation largely affirms changes already taking place in the health care market – paying doctors for outcomes instead of procedures, steering patients to doctors who provide good care at reasonable prices, and coordinating care to keep patients healthy and out of the hospital. The bill also provides changes sought by employers in the formula for calculating fair share assessments under the 2006 health reform law.
AIM supported a more aggressive cost-control target of two percentage points below economic growth and continues to believe that lawmakers are missing a unique opportunity to reduce costs in an industry where experts believe one-third of all spending is waste. The association nevertheless commends the Legislature and Governor Deval Patrick for moving forward with cost-control sequel to the landmark 2006 reform.
“Controlling the cost of health care and health insurance remains the single most important issue for Massachusetts employers and citizens who now pay $15,864 per year to insure a family through a health maintenance organization and $6,000 to insure an individual,” said Kristen Lepore, Vice President of Government Affairs at AIM.
“AIM will continue to monitor the marketplace to ensure that employers and workers are able to afford the world-class medical care available here in the commonwealth. Improved efficiency within the health-care industry would leave extra money to devote to other important public and private priorities such as education, infrastructure, food, shelter, and retirement savings.”
Both the Senate and House of Representatives are due to debate the compromise bill today as lawmakers race against the clock to complete business before the end of formal sessions at midnight.
The key elements of the bill include:
Passage of the cost control bill will not change the fact that the Massachusetts health cost crisis will ultimately be solved by employers working through the evolving private health-care marketplace. AIM recently launched a multi-year educational initiative for employers seeking to make themselves informed consumers of health insurance and their employees informed consumers of health care.