Make Quality Health Care More Affordable
- Governor Deval Patrick's Inaugural Address
Massachusetts is a national leader in health care coverage and innovation - 98% of our residents and virtually all of our children have health care insurance. But health care coverage is not yet universally affordable. Ensuring that quality care is also affordable is the next phase of health care reform in Massachusetts.
Summary of Governor Patrick's Plan to Bring Down Health Care Costs 
The Patrick-Murray administration has taken a variety of steps to bring down costs and filed legislation that facilitates significant reforms to the Commonwealth's health care system.
- Reform the Payment and Delivery of Health Care
- Support Medical Innovation
- Modernize Medical Malpractice
- Provide Municipal and State Government New Tools to Lower Costs
Reform the Payment and Delivery of Health Care
The existing fee-for-service payment system that health providers operate under is the main driver of rising costs. Providers who emphasize wellness or help individuals manage chronic medical issues both improve health and reduce system costs - but under the current system they are not rewarded for those outcomes.
The Governor's new bill will take an important step toward changing that. It will provide a set of standards and benchmarks for the formation of integrated care organizations, commonly known as ACOs, and alternative payment methodologies. These are cost-saving reforms that the market is already moving toward - this legislation will provide incentive for the market to keep heading in that direction and facilitate its transition.
This legislation also empowers the Commissioner of Insurance to continue reviewing premium increases. The Commissioner will consider a wider array of factors when considering whether to disapprove excessive premium increases. This will put pressure on the private market to deliver on the health care reforms they've promised. If health care providers and insurers are going to continue doing things the old way, they will not be allowed to continue raising prices to pay for it.
Click here for more details on the Governor's affordable health care reform proposal.
The Patrick-Murray administration will encourage the medical community to pursue new ideas for lowering the cost of health care and improving the quality of services. This new legislation will encourage the formation of pilot programs to test new, innovative health care cost solutions. The administration will tap into the wealth of talent and creativity in our medical community through an advisory committee consisting of 18 members representing a wide spectrum of stakeholders in the medical community. The committee will engage in an ongoing dialogue with the administration about health care solutions and progress.
This bill also ensures that information about costs, payments, clinical outcomes, and quality metrics - all the information necessary to identify and discern the value of health services - is readily available to consumers. This enhanced transparency guarantees that consumers and businesses will have accurate and available information about their health care options.
Click here for more details on the Governor's affordable health care reform proposal.
The Governor's legislation also reforms the medical malpractice liability system to emphasize prompt resolution, de-emphasize "defensive medicine," reduce the number of costly lawsuits and improve care.
Click here for more details on the Governor's affordable health care reform proposal.
Provide Municipal and State Government New Tools to Lower Costs
Health care costs are taking up more and more of city and town budgets, leading to fewer jobs and critical services.
In July, 2011, Governor Patrick joined labor leaders, legislators and municipal leaders to sign Municipal Health Care Reform legislation
. This legislation gives cities and towns new tools to save on health care costs.- The new law will help cities and towns achieve immediate savings, provide current employees with adequate access to health care and give organized labor a meaningful role in negotiating new insurance plans.
- These reforms will save cities and towns hundreds of millions of dollars.
The administration is also implementing new strategies to reduce health care costs at the state level. State government will actively re-procure health care services and work with the federal government on different strategies to get care to those who are eligible for both Medicaid and Medicare. Reforming the way the state pays for and manages health care will save nearly $1 billion next year alone.