Report finds ongoing healthcare price problems in Massachusetts

Massachusetts, the model for Democrats' healthcare reform bill, continues to suffer from out-of-control medical prices five years after enacting its law, according to a new report from Attorney General Martha Coakley's office.

The report found that physician and hospital costs in the commonwealth continue to vary widely without regard to differences in the quality of care provided. It calls for improving market function and encouraging care coordination.

"The wide variation in provider payments," the report states, "and the significant pace of market consolidations demonstrate the need for immediate action to restrict, and reverse, further distortion of the competitive market."

The insurance industry, under intense political pressure to curtail premium increases, jumped on the report to argue once again that rising medical costs, not health plan profits, are to blame.

"This report highlights the real drivers of rising health care costs that must be addressed in order to make health care coverage more affordable for families and employers," said Robert Zirkelbach, spokesman for America's Health Insurance Plans.

The report recommends:

• Restricting patients' choice in where they're getting their care rather than using high deductibles to increase value-based purchasing decisions;

• Reducing healthcare price distortions through temporary statutory restrictions until transparency can improve market function;

• Encouraging patients to select a primary care provider to help coordinate their care;

• Increasing funding for care coordination, including for infrastructure improvements, and giving providers timely access to relevant patient data; 

• Improving the use of the all payer claims database; and 

• Developing appropriate regulations, solvency standards and oversight for providers who contract to manage the risk of insured and self-insured populations.

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