Saturday, May 28, 2011

Cost Control Efforts in MA

Oregon efforts at health care reform are consumed with regulating insurance in isolation from providers, but eventually people will figure out that the only way to get cheaper health insurance is to get cheaper health care.  Massachusetts, which is a good proxy for life under PPACA is addressing the issue head-on:

The governor recently proposed legislation that would allow the insurance commissioner to scrutinize contracts setting the amounts insurers pay hospitals and doctors and reject health insurance premium increases based on excessive fees for providers.

The administration has scheduled four days of hearings starting June 27 on how to control health care costs. Legislators held their own hearing this month and are grappling with whether to support the governor’s bill, a process they have warned could take months.

Developing an effective doctrine for how, what and why providers should be compensated is the central dilemma of health care reform.  I wish MA good luck.

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