Massachusetts committee calls for greater regulation to address hospital pricing disparity: 5 things to know

A committee set up to address hospital pricing disparity in Massachusetts has made a series of recommendations that include stricter regulation and greater cost transparency, The Boston Globe reports.

Here are five things to know.

1. The committee, which includes hospital leaders, healthcare policy experts and government officials, recently outlined its recommendations in a draft report obtained by The Boston Globe.

2. In addition to stricter regulation to rein in hospital costs, the committee recommended increased transparency for the price of medical services and called for the increased use of tiered health plans, according to the report.

3. The committee did not come to agreement on all aspects of the issue, The Boston Globe reports, but did agree that while price variation is needed at times, a specific hospital's market power and brand solely should not automatically mean higher prices.

4. Commission members proposed that the Health Policy Commission, the Division of Insurance or other state agencies should be able to say "no" to contracts between insurers and providers if the payments are not low enough, according to the report. The commission also recommends creating a low minimum rate for providers to help struggling community hospitals, the report states.

5. The committee will now send a completed report to state legislators and Republican Massachusetts Gov. Charlie Baker, according to the report.

For more on this story, read Priyanka Dayal McCluskey's full report here.

 

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