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Legislature Passes Historic Health Care Cost Containment Bill

By contributor,
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Six years after the passage of Massachusetts’ landmark health care reform law, making health care affordable continues to be a top priority in the Legislature.

In May, the Senate passed a first-in-the-nation health care cost savings bill which will bring about tremendous savings to help consumers and businesses across the state and will ensure that our residents have access to affordable, high quality care. I am pleased that today, the Legislature passed the final version of this historic bill that will save Massachusetts $200 billion over the next 15 years. The bill is now on Governor Patrick’s desk awaiting his approval.

Between 2009 and 2020, health spending is expected to double. Currently, Massachusetts residents are paying about 15 percent more per person for health care coverage compared to other states, totaling more than 40 percent of our annual state spending.

Now is the time for action - cost control must be our next step. As Senate Chair of the Jobs Creation Commission, I had the chance this year to hear from many businesses that are trying to be successful here in Massachusetts. Many of them testified that the cost of health care is hampering their ability to grow. This bill will curb health care costs and help overcome a major barrier to our ongoing economic recovery.

The health care and life sciences industry is our state’s number one employment sector and this plan takes careful steps to balance the need to transform the industry without harming our economy. It develops innovative payment and care delivery models focused on preventative care and investing in community wellness efforts. It also establishes new tools to support providers as they transition to these new billing methods and help them meet cost-containment targets.

In order to help residents and businesses make important health care purchasing decisions, it establishes a toll-free number or a website where the total costs and patient responsibility for payment will be available. This tool will give people a way to learn actual costs for their health care services and will enhance transparency and accountability of the health care marketplace.

One of the most humane and thoughtful provisions of the new law allows providers to offer an apology to a patient without fear of triggering malpractice. Another reform to our medical malpractice laws is the creation of a 180-day cooling off period while both sides try to negotiate a settlement. Both of these reforms will help save precious time and resources for all of those involved.

Addressing the rising costs of health care is essential to the long-term economic growth of the Commonwealth. I am proud that we have produced a bill that builds on our past reforms and works to reduce the cost of health care while safeguarding access to high quality care for all residents.

I look forward to continuing our commitment to taking direct action and additional steps forward to protect our residents, support our businesses and communities, and ensure continued economic recovery throughout Massachusetts.

Make sure to visit my website to learn more about this ground-breaking legislation and other important bills recently passed by the legislature.

As always, please do not hesitate to reach out to me at (617) 722-1640 or by email at Karen.Spilka@masenate.gov with any questions you may have or if I can be of any assistance to you.