Massachusetts to Take Up Global Payment Legislation in the Coming Weeks

Massachusetts lawmakers will likely take up legislation in the coming weeks that would dramatically change the state's healthcare payment model, moving it toward a highly incentivized global payment system, according to a Washington Post report.

"We won't require global payments but include incentives that would encourage providers to use alternatives to fee-for-service," said JudyAnn Bigby, the state's health and human services secretary.

Gov. Deval L. Patrick introduced legislation February 2011 to move all Massachusetts healthcare providers to value-based payments and create a new state government entity that would facilitate payment reform and set benchmarks and timelines for providers.  The legislation to come out of the state senate soon will be different than what the governor proposed; for instance, it will likely set spending caps on the state healthcare budget.

While the bill won't require hospitals to accept global payments, it will likely create strong incentives to do so, and push for accountable care organizations.

Meanwhile, health insurers in Massachusetts — including Blue Cross Blue Shield — have already implemented quality of care payments that incentivize doctors to improve care with financial rewards.

In 2006, Massachusetts became the first state to implement universal healthcare legislation, which requires all residents to have health insurance. Signed into law by then-Gov. Mitt Romney, the healthcare reform is considered in some ways a blueprint for the Patient Protection and Affordable Care Act.

More Articles on Massachusetts and Global Payments:

Survey: Only 29% of Massachusetts Physicians Ready for Global Payments
Massachusetts Lawmakers Plan for Global Payments Despite Physicians' Apprehension
CMS Extends Massachusetts Medicaid Waiver Funding Through June 2014


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