Wednesday, January 07, 2009

State Watch

Massachusetts Gov. Patrick Convenes Panel To Address Rising Health Care Costs

      Massachusetts Gov. Deval Patrick (D) on Monday "accelerated his administration's efforts to control spiraling statewide health care costs," and said that officials are considering regulations to block excessive insurance premiums, the Boston Globe reports. A recent investigation by the Globe's Spotlight Team found that an agreement between the former CEOs of Partners HealthCare and Blue Cross and Blue Shield of Massachusetts helped drive up health costs in the state. Following the investigation, Patrick on Monday convened a panel of senior administration officials to coordinate new and existing state cost containment efforts. He said that cost containment efforts should be developed by this summer and that he expects to file new legislation.

Patrick said, "The increases at this rate over time (are) just not sustainable, not for families, not to business, not for government," adding, "We have to get at cost containment because these kinds of premium increases and the unevenness in the way various providers are compensated for similar services have to be addressed in order to assure the long-term viability of this grand experiment" of the state's health insurance law. State Inspector General Gregory Sullivan said he wants providers and insurers to hold off signing new contracts until the Patrick administration has implemented new, as-yet-undetermined policies to limit premiums.

Partners and BCBS on Monday said they look forward to participating in Patrick's discussions. Partners spokesperson Rich Copp in a statement said that cost increases nationally "have been mirrored almost exactly" in Massachusetts. He added that Partners' latest contract with BCBS "resulted in rate increases well below those experienced in prior years." BCBS CEO Cleve Killingsworth "expressed support" for one of the administration's proposals that would base payments on medical outcomes rather than the quantity of procedures or visits (Bombardieri, Boston Globe, 1/6).