Containing MA health costs

In 2006 Massachusetts passed landmark legislation to provide almost universal health insurance to its residents. A report on the first year of its implementation warned that health care reform "will become unaffordable...unless health care spending can be brought under control." The state contracted with RAND to develop cost containment strategies and to assess their impact on the health care system.

RAND Health said to first consider two basic approaches to reducing spending: reducing prices (pay less for care) and reducing volume (use fewer services), and noted that within those two approaches two common methods are used: incentives and regulation. RAND also came up with 21 policy options grouped under five categories:

• Reform payment systems
• Redesign the healthcare delivery system
• Reduce waste
• Encourage consumers to make good health choices
• Change medical liability laws

Controlling Health Care Spending in Massachusetts: An Analysis of Options
      Report (pdf. 246pp/1.5MB)
      Summary (pdf, 49pp/365kB)
      News release, Aug. 7, 2009