Massachusetts officials say Blue Cross Blue Shield of Massachusetts and Boston-based partners HealthCare are primarily to blame for the 2.3 percent increase the state saw in healthcare spending last year.
According to the latest report from the state's Center for Health Information and Analysis, spending at BCBS and Partners jumped 3.65 percent and 4 percent, respectively.
This is the first time Massachusetts has calculated spending growth throughout the healthcare system. In 2012, the state enacted cost control measures that established a target for annual spending increases. The cap was 3.6 percent for 2013, meaning Massachusetts finished last year below the bar. But officials still point to the insurance and academic medical center behemoths as drivers behind the 2.3 percent jump.
"You could almost say as goes Partners and Blue Cross Blue Shield, so goes Massachusetts," CHIA Executive Director Aron Boros told The Boston Globe. The two are the largest payer and health system in the state: BCBS holds about 40 percent of the private health insurance market while Partners controls 28 percent of the provider market.
But BCBS and Partners said CHIA's calculations are inaccurate. A BCBS spokesperson told The Globe the insurer has figures showing a more moderate 2.1 percent increase in spending, while a Partners spokesperson said costs grew faster than expected last year, but the health system will reduce costs over time by coordinating more care in community settings that have lower costs than academic medical centers.
"Slowing the trend of healthcare cost growth is a long-term effort, and it’s difficult to measure in a simple one-year snapshot," Partners spokesperson Rich Copp told The Globe.