HPC targets drug prices, other measures, for cutting health costs
Courtesy of the Massachusetts Health Policy Commission
David Seltz is executive director of the Massachusetts Health Policy Commission.
The Massachusetts Health Policy Commission (HPC) released its Annual Health Care Cost Trends Report on Wednesday, making more than a dozen recommendations for advancing state healthcare reform in the face of rising healthcare costs.
The HPC’s objective is to curb healthcare spending as required by the 2012 healthcare cost containment law. The latest report tracks 2015 healthcare spending, finding that spending grew by 4.1 percent per capita, missing the target growth rate of 3.6 percent. That’s driven largely by increased prescription drug spending, which is the largest single contributor to increases in healthcare costs, according to the HPC.
The recommendations were discussed broadly at a preliminary findings meeting with board members earlier in Feb. 8. Wednesday’s report formalizes the recommendations, which require action from a variety of stakeholders, including lawmakers, insurers, policy makers and state officials.
The recommendations focus on four areas, including fostering a value-based healthcare market; promoting an efficient, high-quality healthcare delivery system; advancing effective incentives for providers; and enhancing analytics for better transparency and accountability.
Specifically, HPC said Massachusetts should take steps to reduce drug price increases through efforts toward transparency. Variation in prices between providers, an issue that state officials have tried to crack down on recent years, should also be targeted, along with limiting sites that can bill as outpatient hospital facilities, putting them on the same footing with physicians offices providing similar services.
Adoption of alternative payment methods that encourage providers to care for patients more efficiently, specifically those who are covered by the MassHealth program, is also recommended.
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