JAMA Network August 11, 2020
In 2018, national health care spending increased by 4.6%, reaching $11 000 per person. Amid this growth, states are seeking novel ways to protect their budgets. One approach is to set a cost growth benchmark—a percentage growth rate under which states aim to maintain annual health care costs.
Leadership in Massachusetts
Massachusetts has had such an approach since 2013. Its Health Policy Commission monitors total health care cost growth in the state using a benchmark—including medical expenses paid by private and public payers, patient cost sharing, and the cost of private insurance—and works with clinicians, care organizations, and insurers one-on-one if they exceed that benchmark. Originally set at 3.6% growth by the legislature, since 2018 it has been reduced to 3.1%...
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