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IN THE STATES: No Panacea for Cost Containment? Let's Try a Plethora of Provisions!

August 5, 2008 - 1:40pm

Since the passage of Massachusetts’ landmark 2006 health care bill, it has been all eyes on Massachusetts. The results so far: more people have insurance, out-of-pocket spending has decreased, and the bill maintains impressive levels of public support. The biggest challenge has been the higher than expected costs.

Health costs in a state are influenced by federal spending and payment patterns and policies, not to mention the U.S. tax code. So how exactly should Massachusetts go about reining in health care costs so it can keep care affordable and keep everyone insured? Well, that’s a question being asked across the country and around the world. And while there are many promising ideas floating around, there is no consensus about which method is “the best." Ever the innovator, Massachusetts has a new idea: try a whole lot of them at once!

Just hours from the end of the 2008 session, the Massachusetts legislature passed a bill on Thursday containing a slew of cost containment provisions. Gov. Deval Patrick is expected to sign it later this week. Here’s a sampling of the provisions, compiled from articles in the Boston Globe and the Boston Herald.

  • Requires hospitals and health centers to adopt electronic health records by 2015
  • Requires standard, uniform billing and coding for providers and insurers
  • Instates mandatory reporting of all hospital-acquired infections
  • Bans hospitals for charging for “never events” (such as wrong sided surgeries)
  • Mandatory pharmacy reporting of all improper dispensing of drugs resulting in serious injury or death
  • Expands enrollment at the University of Massachusetts Medical School for students interested in primary care
  • Creates a loan forgiveness program for doctors and nurses practicing in underserved areas
  • Authorizes MassHealth to promote primary care
  • Creates a commission to consider reforming the health care payment systems
  • Calls for an annual public hearing on health care costs
  • Aims to educate providers on generic drugs and low-cost pharmaceutical alternatives
  • Requires all drug companies to report payment or subsidy over $50 made to a healthcare professional to the state's Department of Public Health, which must then post the information on a public website

This doesn't address the specific revenue gap for the state's health insurance program, but it's an interesting attempt to move hospitals and doctors along a new cost path. Some of it really boils down to transparency, accountability, and common sense. Which isn't a bad way for the legislature to ends its session.