In Massachusetts, we are privileged to be home to some of the most prestigious and leading edge health care providers in the country - but that privilege comes at a cost, our insurance premiums are among the highest in the nation.  Massachusetts pioneered mandatory health coverage for all residents in 2006, but missed the boat when it came to addressing spiraling health care costs.  Following Federal Health Care Reform, much turmoil in the local healthcare marketplace, and a turbulent economy, we are finally beginning to tackle the daunting task of controlling costs in our medical payment system.

The predominant payment system in Massachusetts to date has been the traditional Fee-for-Service model, which makes piecemeal payments for each health care procedure delivered (regardless of the outcome).  This model can be lucrative for providers as there is a financial incentive to deliver more (and often more costly) services.  In addition, there are no incentives to improve quality, efficiency or to provide lower profit margin care like preventive services.  This has also been the predominant payment system for Medicare providers.  Read More