How States Are Holding Payers and Providers Accountable for Health Cost Growth
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Key Findings
We recommend that policy makers should:
- Ensure there is a transparent, trusted source of data on health care cost trends.
- Decide which entities to hold accountable for keeping spending growth below the target, based on their contribution to cost growth.
- Establish clear criteria for applying sanctions.
- Devise incentives to motivate compliance.
This study examines Massachusetts’ approach to accountability and drew lessons for other states. It describes the evolution of cost-growth target initiatives and accountability methods in other states, noting the importance of laying a foundation to enable comparison of the effects of different approaches to accountability as states’ programs roll out in the next few years. We conclude by discussing what state decision makers can do now to maximize the impact of state cost-growth targets.
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