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August 1, 2012

Legislators Pass Health Care Cost Bill

Working into the early morning hours today, state lawmakers passed a long-awaited health care cost containment bill that bill authors said would save $200 billion over the next 15 years.

The bill is seen as the second step of health care reform in Massachusetts after the state began mandating health insurance coverage in 2006, a move that has resulted in approximately 98 percent of residents having insurance.

The bill replaces the state’s health care quality cost council with a new, independent commission, whose director will be appointed by a majority vote of the governor, attorney general and state auditor.

The commission will examine factors that contribute to cost increases, pursue payment reforms and seek to make insurance pricing structures more transparent.

Also included is a mandate to pursue cost savings and safety improvements through electronic records. The bill also creates a center to focus on recruitment in the primary care workforce and provides debt relief to medical professionals who work in underserved areas. The bill also bans the use of mandatory overtime for nurse practitioners in hospitals.

Information from the State House News Service was used in this report.

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