Three years ago, Massachusetts brought near-universal coverage to the commonwealth but now the nascent state-run health care system is in trouble -- government and industry officials agree that the plan will not be sustainable over the next 5 to 10 years if they do not take significant steps to arrest the growth of health spending. When it debuted, a large number of applicants threatened to choke the system from within. Now the recession is driving costs out of sight, according to state officials.
The Massachusetts system is viewed by many as a petri dish for trying out a 100% government-run health care bureaucracy in the US. Now that the experiment is showing signs of faltering, Gov. Deval Patrick looks to a fix: revamp the way public and private insurers reimburse physicians and hospitals.
From The New York Times:
They want a new payment method that rewards prevention and the effective control of chronic disease, instead of the current system, which pays according to the quantity of care provided. By late spring, the [state-run] commission is expected to recommend such a system to the legislature.
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