Massachusetts Fears Health Costs Will Exceed Legislated Cap

Massachusetts, which passed a statewide healthcare law in 2006 aimed at insuring all its residents and placed a ceiling on healthcare cost increases last year, may begin to see prices and health insurance premiums rise above the mandated limit this year, according to a report by the Boston Globe.

Massachusetts lawmakers and Gov. Deval Patrick (D) legislated that per-capita healthcare cost increases fall at or below the state's economic growth, expected to be 3.6 percent this year. However, three current market factors are building skepticism that costs can stay below that mark, according to the report.

Those factors include multiple major hospital mergers and affiliations, federal subsidies breaking the buying power of health insurance cooperatives and an anticipated 6 to 12 percent rise in the price and volume of medical services that could double or even quadruple the rate the state economy grows.

More Articles on Healthcare Spending:

CMS Launches eHealth Initiative at HIMSS 2013
Panel: Fix SGR by Cutting Increased Medicare Payments for Hospital Services
Which Health Programs Did the Sequester Cut?

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars