Information submitted by the office of Sen. Harriette Chandler
Sen. Harriette L. Chandler, D-Worcester, announced today that the Senate on Tuesday completed a framework of nation-leading health care reforms, sending to the governor a comprehensive, landmark cost-control bill estimated to save the Commonwealth $200 billion over the next 15 years while improving the quality of care, increasing patient access, and strengthening the transparency and accountability of the state’s entire health care system.
The bill comes at a crucial time as health spending is projected to double from 2009 to 2020, outpacing both inflation and growth in the overall economy, while Massachusetts residents and businesses continue to struggle with increasing premiums and other health care costs.
“I am pleased to have been a part of such a dynamic legislative session in which a model piece of legislation was passed,” said Chandler. “This bill is necessary, as we’re seeing a trend of increasing prices in most markets. Health care costs should not be too burdensome on families and businesses, and I hope that this bill prevents future cost increases while boosting the economy.”
The legislation, for the first time in the nation, establishes a statewide health care cost growth benchmark for the health care industry equal to the potential growth of the state’s gross state product (GSP) from years 2013 to 2017, then dropping it 0.5 percent below potential GSP from 2018 to 2022 and back to potential GSP for 2023 and beyond.
Meeting this goal will result in an estimated $200 billion in savings in the health care industry over the next 15 years which will be passed onto businesses, municipalities and residents of the Commonwealth who are struggling with increasing premiums and other health care costs.
At the urging of Senator Chandler, the bill includes a $60 million first-in-the-nation Prevention and Wellness Trust Fund as part of the health reform. The Trust will make unprecedented investments in healthy communities across the state.