Massachusetts Health Care Cost Growth Benchmark Factsheet: Performance Improvement Plans
Learning from a Pioneer: Massachusetts’ Experience with State Cost Containment
Peterson Center on Healthcare
To contain health care cost increases, Massachusetts enacted Chapter 224 in 2012, which established a first‐in‐the‐nation target, called a benchmark, for annual growth in total statewide health care spending. Among other things, the law created a Health Policy Commission and granted it authority to hold payers and providers accountable for keeping annual cost growth below the benchmark. To inform other states that have adopted similar cost growth benchmark initiatives, this series of factsheets describes the Health Policy Commission’s four accountability tools and how they have been used to date.
This factsheet is focused on the use of the Performance Improvement Plan process, which is initiated when an eligible entity exceeds the benchmark.
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