The center released its annual review of commercial and government healthcare spending for 2015 Wednesday. The agency collects data from payers and providers across the state to monitor spending trends over time. It is the agency’s fourth report since Massachusetts passed its healthcare cost containment legislation in 2012.
While the report’s findings suggest some progress controlling medical expenses, cost reduction remains a significant challenge for private and public healthcare organizations.
Below are five findings.
1. Healthcare spending (3.9 percent year-over-year) significantly outpaced Massachusetts economic inflation rate (0.6 percent year-over-year) in 2015.
2. Tim Gens, executive vice president of Burlington-based Massachusetts Hospital Association, said in an emailed statement the report “shows that our healthcare community continues to make progress reining in cost increases, particularly when considered against the overall growth of the state’s economy.” Mr. Gens said the healthcare spending rate could be decreased in the future, as the report revised down last year’s rate of 4.2 percent from 4.8 percent.
3. All together, Massachusetts spent $8,424 per resident last year. That includes spending in private health insurance, Medicare and Medicaid programs.
4. Mr. Gens said the report shows healthcare costs are impacted most by increased enrollment and rising prescription drug costs as opposed to provider payments. The report found prescription drug spending increased 10.1 percent last year and 13.5 percent in 2014.
5. Nationwide, healthcare spending was projected to increase 4.6 percent year-over-year in 2015, according to the report.
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