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While debate continues on some aspects of our state’s health reform law, one issue inspires consensus: the need to control health costs in Massachusetts. The logic is simple: the law is based on creating subsidized and unsubsidized insurance coverage for the state’s uninsured. But if health care spending in Massachusetts continues to grow at about 10 percent each year, these new insurance products will quickly become unaffordable (for some they are unaffordable today). Sustaining our law requires directly facing the problem of health costs.

Dolores Mitchell and Bruce Bullen both discussed this issue, focusing on whether the public is ready to make cost-conscious choices in a more transparent system, and whether such choices will encourage providers to moderate their costs. These options must be pursued, but the most promising route to controlling costs is by making care better.

This seems like a contradiction. Doesn’t it cost more to improve quality, and isn’t the best care the most expensive care? Some recent studies and reports show just the opposite. The CMS/Premier Hospital Quality Incentive Demonstration recently measured hospital quality on a variety of conditions, from hip replacements to heart failure. The study found that the hospitals that performed the best on a series of quality measures spent less than hospitals with poorer performance. A New York Times story last week described a study of 60 Pennsylvania hospitals whose findings “support a growing national consensus that as consumers, insurers and employers pay more for care, they are not necessarily getting better care. Expensive medicine may in fact be poor medicine.”

The difficulty is that our system is not equipped to respond to this new evidence. As Paul Levy noted in his own blog last week, our payment system rewards volume and intensity of services, and it currently has few mechanisms to reward quality. That’s the real challenge. The health care system must be reoriented to keeping people healthy and getting patients the right care when they are ill.

Ultimately, we are going to need another wave of health reform in Massachusetts to sustain our new law. And the second wave must focus on controlling costs by making care better.

Andrew Dreyfus is Executive Vice President for Health Care Services at Blue Cross Blue Shield of Massachusetts and former President of the Blue Cross Blue Shield of Massachusetts Foundation.

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Comments
  • Rick Evans posted:
    Comment posted June 24th, 2007 at 2:40 pm

    “Ultimately, we are going to need another wave of health reform in Massachusetts to sustain our new law. And the second wave must focus on controlling costs by making care better.”

    The goal of Massachusetts Health Insurance law was to ensure the profitability of Massachusetts health care industrial complex.

    Cost control was little more than rhetorical lip service. However,you already know that Mr. Dreyfus since you were part of the big $$$ lobby leasing Massachusetts’ rent-a-lawmakers.

    Now that you have extorted people in to buying your costly product you want cost controls that help you compete with your partners over at Partners HealthCare for a share of the profits dollar.

  • Marlene Blanton posted:
    Comment posted November 19th, 2007 at 5:41 am

    I have skimmed over your site info & blogs,etc..,& I am trying to educate myself more about the healthcare crisis as much as I can.I & my family fell between the cracks by having too much income to be eligible for Medicaid,in IN,& since we are not old enough to apply for Medicaid,I looked for something else & about 2 yrs.ago found a go between by owning into a business that offers discounted “consumer-driven”healthcare.They are a solid company ,based out of Plano,TX,& they are & have been the cutting edge of playing a big role in reinventing the healthcare system.

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