Mass. Seeks New Way to Pay for Health Plan

Most insured state in nation burdened by priciest care

By Kevin Spak, Newser Staff

Posted Mar 16, 2009 10:12 AM CDT

(Newser) – Three years ago, Massachusetts politicians began what may be the gutsiest health care experiment the country has ever seen, bringing near-universal coverage to the state in record time. There’s just one problem: they put off any attempt to control costs, the New York Times reports. Massachusetts’ health care is among the nation’s priciest, and though the state program’s finances are stable for now, everyone agrees they won’t stay that way without reform.

Now, the state is hoping to change the way health insurers reimburse doctors—to reward prevention and chronic disease control rather than paying based on the quantity of care doled out. Health policy experts say that might be an even bigger coup than universal coverage, but it won’t be easy. Among the hurdles: getting federal permission to tinker with Medicaid and Medicare.

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Massachusetts Gov. Deval Patrick speaks to the Associated Press during an interview in his office at the State House in Boston on April 12, 2007. (AP Photo/Chitose Suzuki)

Mass. Gov. Deval Patrick speaks to reporters at the State House in Boston on Jan. 26, 2009. (AP Photo/Elise Amendola)

Mass. Gov. Deval Patrick crosses his fingers while talking about funding from the proposed federal stimulus plan in Boston on Feb. 11, 2009. (AP Photo/Charles Krupa)

Rick Conroy displays mail from the state regarding his unemployment status. Conroy is unemployed, uninsured and faces a hefty fine under Massachusetts' mandatory health care law. (AP Photo/Elise Amendola)

Mitt Romney speaks about health care reform to the Florida Medical Association's annual meeting in Hollywood, Fla., in this Aug. 24, 2007, file photo. (AP Photo/Lynne Sladky, file)

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It’s very hard for the average consumer, or frankly the average governor, to understand how some of these companies can have the margins they do and the annual increases in premiums that they do. - Gov. Deval Patrick

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Mass. Seeks New Way to Pay for Health Plan