6 June, 2012
Last night, Rep. Carolyn Dykema (D- Holliston) joined her colleagues in the House to give bi-partisan support to healthcare cost control legislation that will save an estimated $160 billion for families, seniors and small businesses over the next 15 years.
“The bill we passed last night is crucial for the health of our residents, and the health of our economy,” said Rep. Dykema, a member of the Joint Committee on Health Care Finance that drafted the bill. “I believe what we’ve passed is a balanced bill, created with input from all stakeholders, that will control cost growth while protecting the excellent quality healthcare that Massachusetts is known for. This legislation is an important step forward.”
The bill is the second phase of Massachusetts healthcare reform begun with legislation passed in 2006 that resulted in over 98% of adults and over 99% of children across the Commonwealth having access to health insurance. The bill passed by the House last night takes the next, crucial step to control cost to families and small business. Health insurance premiums for a family now average more than $15,000 annually in Massachusetts.
“When I toured the state speaking with small business owners, the dramatic growth in healthcare costs was the number one issue,” said Dykema. For smaller businesses who are considering hiring, the unpredictability of healthcare costs is a huge disincentive to adding new employees. Healthcare cost control is the ultimate jobs issue. Doctors and healthcare providers also say that we can increase quality by making the system more efficient. There’s real opportunity here. ”
Included in the omnibus bill are provisions that sets an industry goal for cost growth, provide a mechanism to provide additional funding to community hospitals, and requires implementation of interoperable technology that will allow doctors access up-to-date patient information, whether in the office or the emergency room.
The bill also addresses concerns about certain health care providers being able to charge dramatically higher prices than others for the same service solely because of their size and prominence, a concern raised by Attorney General Coakley in a 2011 report.
In addition, Representative Dykema along with 19 of her House colleagues, successfully led an effort to amend the bill to change the employer “fair share” contribution formula to make it easier for small businesses to comply with requirements related to offering health insurance to employees.
Other aspects of the bill that will improve healthcare and control costs include:
- Making health care costs more transparent. Requires that consumers and businesses be provided with comparative price and quality information.
Increasing the number of primary care physicians. Provides loan forgiveness grants to primary care providers practicing in underserved areas and funding residencies in primary care settings to encourage new physicians to join the primary care field. - Reforming medical malpractice. Implements reforms to address costs related to malpractice liability, which is estimated to account for over $1 billion in costs annually.
- Transitioning to alternative methods of paying for healthcare. Facilitates the transition away from a “fee for service” model, toward a system that allows for a greater focus on wellcare and prevention.
- Simplifying administrative processes. Requires simplification of forms and administration so that providers can spend more time with their patients.
The bill now moves to a conference committee where differences between the House and Senate bills will be resolved before advancing to the Governor’s desk for a signature.
