Massachusetts Attorney General Martha Coakley released a detailed report—the third in a series dating back to 2010—that examines the recent health care trends and developments in the consumer, health plan and provider sectors. The report also provides recommended actions for government agencies created to monitor trends in health care spending, specifically the new Health Policy Commission (HPC), the Center for Health Information and Analysis (CHIA) and the Division of Insurance.
The Attorney General’s report notes that purchasers are moving out of HMO products and into tiered and limited network products, PPO products and high-deductible products. The report also notes that health plan payments continue to vary significantly and that growth in prices, not utilization, is the primary driver of increased costs.
While the report notes some positive trends in controlling health care costs, significant disparities in total medical expenses persist among and within regions in Massachusetts, and that such disparities are not explained by differences in underlying health status. The report also finds that providers are taking on increased performance risk under extremely complex payor contracts.
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