Success Of Massachusetts Health Insurance Law Depends On State's Ability To Rein In Health Care Costs, Officials Say

Main Category: Health Insurance / Medical Insurance
Article Date: 10 Jan 2008 - 7:00 PDT

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Massachusetts health officials have said that containing health spending increases is key to the success of the state's health insurance law, the AP/Boston Globe reports. According to Jon Kingsdale, executive director of the Commonwealth Health Insurance Connector Authority, the "sustainability" of Massachusetts' health insurance law depends on the state's "ability to restrain or constrain or moderate the increase in costs," which will "take a huge concerted effort by all players in the health care area."

Penalties intended to encourage residents to obtain health coverage are only part of the state's "multipronged attempt to cut health care costs to ensure the viability of the law," according to the AP/Globe. Massachusetts hospitals are pursuing a series of initiatives to reduce costs, including streamlining administrative functions and bringing on more qualified health care workers, especially nurses, according to Lynn Nicholas, president and CEO of the Massachusetts Hospital Association. Hospitals also are examining treatment of chronic diseases to determine ways to reduce costs and improve care. In addition, insurers "say they are committed to reducing costs," the AP/Globe reports.

Providers should be looking to cut costs and reduce spending by instituting safeguards to reduce medical errors that could shorten the length of hospital stays and reduce the number of readmissions, Kingsdale said. He also recommended reducing reliance on costly medical tests when they are of questionable benefit.

Kingsdale said his goal is to limit annual health cost increases to about 5%, compared with recent double-digit increases. He also said that the state must stand firm on requirements that people obtain health coverage if they can afford it. Nicholas agreed, saying, "One of the biggest pressures is, will we have the ability to stick to our guns on personal responsibility." Nicholas added, "If we get soft on that issue, everything could go down" (LeBlanc, AP/Boston Globe, 1/6).

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