Tuesday, April 19, 2011

Massachusetts Sets Its Sights on Cost-Control

MA continues to innovate on the healthcare front. In a new move by MA lawmakers, the state is attempting to switch from a "fee-for-service" system to a "lump sum fee."

There has been a lot of talk about this type of fee program in helping reduce costs. Mitt Romney actually suggests it in his book as a possible way to reduce overall costs of healthcare.

I would like to see a state implement this program to see if it truly does have any cost reducing benefits. I suspect it will.

The goal of MA healthcare reform in 2006 was primarily to increase the coverage of health insurance to everyone in the state, not really to reduce overall costs. Cost reduction was supposed to be the next phase of Romneycare but that didn't happen due to a largely Democratic legislature with other goals. Perhaps now, MA will provide leadership to the country on cost-containment as well.

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