Policy & Law

Mass. Proposes Plan to Cut Acute Healthcare Costs

1 Mins read

Posted in CorporateHealthcare Policy & The MediaKnowledge & MedicinePolitics & The Law

Posted in CorporateHealthcare Policy & The MediaKnowledge & MedicinePolitics & The Law

Massachusetts state lawmakers have introduced a bill that would link healthcare spending to economic growth. Dubbed the Health Care Quality Improvement and Cost Reduction Act of 2012, the bill, if passed, would tie hospital and provider payments for services to the Gross State Product, less 0.5 percent. The measure is meant to keep spending by certain high-cost institutions in check, requiring taxation if the capped spending mechanism is exceeded.

A tax rate of 10 percent would be levied against hospitals which could not justify spending at a level of 20 percent or lower on the median price for a particular service. Raised funds would be used for indigent care spending. While not a requirement, ACO membership would be encouraged, as the bill would allow greater transparency for healthcare consumers. Greater consumer awareness would lead to greater adoption of coordinated care programs between hospitals and ambulatory primary care delivery systems.

To a leading MIT healthcare economist, Obama adviser, and Mass. universal coverage architect, the plan is described as “broad” and ”visionary”, a complement to rein in higher costs under that state’s universal coverage mechanism.


Related posts
Global HealthcarePolicy & Law

Do HMOs Deserve A Bad Reputation? The Truth Of Managed Healthcare

3 Mins read
Have you ever heard people say that HMO health insurance is no good? It’s no secret that HMOs have a bad reputation,…
Policy & Law

Top 4 Important Things To Understand About Insurance

2 Mins read
When it comes to Medicare, the enrollment process can be a little tricky. That’s why it’s important to understand the relevant health…
Health carePolicy & Law

Elmiron Controversy Highlights Need For Longterm Clinical Drug Testing

4 Mins read
Elmiron has recently been the subject of a number of lawsuits brought about over claims that the drug causes vision problems and may lead…