Massachusetts state senator Cindy Friedman has issued a warning that the state’s health care system is “falling apart” and has called for stricter regulations to rein in for-profit and private equity entities in order to control rising costs. At an annual hearing to discuss health care spending growth benchmarks, new data revealed that health care expenses surged at a near-record rate in 2023.
Friedman emphasized the need to focus on the value provided by different health care services and entities, rather than just the profit they generate. The Center for Health Information and Analysis reported that health care spending in Massachusetts grew at an 8.6% rate in 2023, well above the 3.6% benchmark. Major drivers of this increase were higher pharmacy spending and new MassHealth supplemental payments to hospitals.
Friedman, along with other industry stakeholders, called for a reevaluation of private equity and for-profit entities in the health care sector, as well as addressing issues related to primary care and prior authorization requirements. The Legislature and Governor Maura Healey have recently passed laws aimed at curbing prescription drug costs and enhancing hospital financial oversight.
Leaders in the health care industry highlighted the need to rein in pharmaceutical costs and suggested that cost constraints in the pharmaceutical industry were essential to making health care more affordable for residents. The sharp rise in health care spending has put pressure on the state’s residents, particularly in the face of rising costs in other areas like child care, housing, and food.
Moving forward, policymakers are urged to take urgent action to address the escalating health care costs and ensure that the system is focused on delivering quality care to patients rather than profits. Meeting these challenges will require a comprehensive approach that involves regulators, lawmakers, and industry stakeholders working together to implement effective solutions.
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