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Senate, House
Reach Consensus on Comprehensive
Health Care
Cost Containment Legislation
July 30, 2008 — The Senate and House on Thursday reached consensus on
comprehensive legislation that will usher in the next phase of health
care reform in Massachusetts with a package of new initiatives aimed at
bringing down escalating health care costs and creating greater access
to primary care.
The legislation promotes the modernization of the health care system to
reduce waste and improve quality care, establishing the Commonwealth as
a national leader in the statewide adoption of electronic medical
records. Also included is a uniform billing provision initially
introduced by Senator Karen Spilka (D-Ashland), which has been
estimatedby the Senate President to have the potential of saving the
Commonwealth $1 billion over the next ten years.
"I am extremely proud to be a co-sponsor of this bill, which will save
us hundreds of millions of dollars and ultimately lead to more residents
receiving high quality health care at affordable rates," stated
Spilka."Currently, nearly a third of every health care dollar is spent
on administrative costs. The uniform billing provision of this
legislationwill ensure less money is spent on processing paperwork,
freeing up resources to dedicate to direct patient care."
"This legislation is crucial for the future vitality of our health
caresystem and our economy," said Senate President Therese Murray
(D-Plymouth). "It establishes bold reforms in the structure and
operation of our health care industry that will bring down costs,
improve access to primary care and establish transparency measures for
providers and insurers alike. This is an exclamation point on the end of
a very productive legislative session, and I couldn't be happier withthe
hard work and collaboration that went into this legislation. I look
forward to the Governor signing it as soon as possible."
The compromise legislation authorizes the Division of Health Care
Finance and Policy and the Attorney General to hold an annual public
hearing with health care providers and health care insurers to
investigate and report on health care cost drivers and
makecost-reduction recommendations. It also creates a Special Commission
on Health Payment Reform to investigate restructuring the current
payment system to provide incentives for efficient and effective care.
The 15-member commission will make its recommendations no later than
April 1, 2009.
"Two years ago, we took historic steps to expand access to health care
for every citizen of the Commonwealth," said Senator Richard T. Moore
(D-Uxbridge), Senate chairman of the Health Care Financing Committee.
"This bill takes the next critical step by improving the quality and
affordability of health care. It launches several initiatives essential
to creating a transparent system of quality improvement and cost
containment, and I am proud to join with the Senate President and my
colleagues in the Legislature in approving this comprehensive
initiative."
The legislation requires the Department of Public Health to set a new
"marketing code of conduct" that all pharmaceutical and medical device
companies must adopt and comply with, as enforced by the state. The
standard will include all the restrictions and guidelines in the most
recent versions of industry-adopted ethics codes. The compromise
language also requires all pharmaceutical and medical device companies
to disclose the value, nature, purpose and recipient of any fee,
payment, subsidy or other economic benefit with a value over $50 that
goes to any health care professional in the Commonwealth.
"This is about protecting the sacred doctor patient relationship," said
Senator Mark Montigny (D-New Bedford), a reform proponent. "We are
especially focused on controlling costs, and this is one way we can help
ensure that drug prescriptions and medical device choices are
alwaysbased on non-biased evidence rather than industry-biased
marketing."
Other provisions of the bill include:
* Strengthening the Determination of Need (DON) process for outpatient
capital projects and ambulatory surgery centers to help maintain
standards of quality and ensure the efficient and equitable deployment
of health care resources across the Commonwealth;
* Authorizing MassHealth to establish a "Medical Home" demonstration
program to promote coordinated, comprehensive patient care and
strengthen the role of primary care providers;
* Creating a new loan forgiveness program for doctors and nurses who
commit to practicing certain specialties in medically underserved areas,
administered by the Health Care Workforce Center;
* Expanding enrollment at UMass Medical School for students committed to
primary care specialties;
* Creating an enhanced "learning contract" for UMass Medical students
who commit to working four years in primary care in Massachusetts,
providing a greater tuition incentive for those who participate, but
also including a tougher penalty for students who don't complete their
commitment;
* Required reporting of "serious reportable events", adverse drug events
and hospital-acquired infections; and * Requiring physician competency
in health information technology for board registration by the year
2015.
The legislation's requirement for the statewide adoption of electronic
medical records also sets a goal of 2015 for implementation anddedicates
$25 million for the financing and deployment of the system,which will be
overseen by the new Massachusetts e-Health Institute. After 2015, the
use of an interoperable health record system would be required for
hospital licensure.
The legislation sets a goal of 2012 for statewide adoption of
Computerized Physician Order Entry systems (CPOE). After this date, the
use of CPOE systems would be required for hospital licensure.
Additionally, the legislation's standard for uniform billing among
health care providers and insurance companies will simplify the current
billing structure to reduce administrative costs and errors.
The bill now goes to the Governor for his signature. |
