Massachusetts Commission Recommends Global Payments - July 24, 2009

In response to rapidly escalating health care costs associated with the state’s health coverage expansion, the Massachusetts Special Commission on the Health Care Payment System has recommended dramatic changes in provider payment methodologies for both public and private payers.  The Commission, which was authorized by statute to recommend a plan for implementing a common payment strategy for all public and private payers in the state, has recommended compensating providers with a flat monthly or annual payment in lieu of fee-for-service payments.  In particular, the Commission recommends that the state legislature adopt legislation to require payers to provide risk-adjusted global payments in combination with quality-related incentives for all providers.