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CHIA Releases Annual Report on the Performance of the Massachusetts Health Care System: Expenditures Growing Slower, but Patient Spending Rising

CHIA Releases Annual Report on the Performance of the Massachusetts Health Care System: Expenditures Growing Slower, but Patient Spending Rising

September 21, 2018

CHIA Report cover

Last week’s release of the Annual Report on the Performance of the Massachusetts Health Care System by the Center for Health Information and Analysis (CHIA) tells us that while total health care expenditures grew much more slowly, patient spending increased significantly in 2017.

In what was heralded as good news, the growth rate of Total Health Care Expenditures (THCE) in 2017 fell below the 3.6% benchmark set by the Health Policy Commission (HPC). Nevertheless, THCE did grow by 1.6% to $8,907 per resident.

While that’s unequivocally good news, not all is well. What does the report show for consumers across the Commonwealth as they try to access the care they need to live healthy lives? Digging in, the report includes the following findings:

  • Pharmacy and hospital outpatient spending remained the largest drivers of THCE growth. Prescription drugs are still skyrocketing in price, compared to other health spending. Drug costs went up 5%.
  • Annual growth in fully-insured premiums accelerated – from 2.0% in 2016 to 4.9% in 2017.
  • Between 2016 and 2017, member cost-sharing continued to grow at a faster rate (5.7%) than inflation, average wages, and premiums.
  • By 2017, 28.2% of members with private commercial insurance were enrolled in high deductible health plans.

In short, while total expenditure growth is down, patients are spending more – to pay for prescription drugs at the pharmacy, to pay their monthly premiums, and to cover co-pays for care before they meet their deductibles.

Health Care For All (HCFA) is deeply concerned about the implications this increased spending has on the ability of individuals and families to access the comprehensive, high-quality care they need when they need it. HCFA’s Director of Policy and Government Relations Brian Rosman told the Boston Globe, "We know that people with high cost sharing, high co-pays, high deductibles end up delaying care that they need and that leads to worsening of their conditions and higher costs later on.”

We need to take more aggressive action to control the growth of drug prices and to contain out-of-pocket costs so that access to equitable, affordable, and comprehensive health care is a reality for ALL Massachusetts residents. Stay tuned to learn more about HCFA’s priorities for the upcoming legislative session and how you can get involved.

                                                                                                                                                                                          -Natalie Litton