Senator Jim Marzilli Votes for Cost-Containment Health Care Legislation
Bill advances next phase of Health Care Reform
The Senate on Thursday passed the next phase of the Commonwealth's two-year-old landmark health care reform with a package of new initiatives aimed at bringing down escalating health care costs and creating greater access to primary care.
"I have been working on health care reform for many years and this bill reflects the legislature's continuedcommitment to providing affordable, high-quality health care to all our citizens. With the Senate President's leadership and the partnership of many stakeholders, we are keeping Massachusetts in the forefront of health care reform by protecting the progress we've made and continuing to improve on health care access and quality," said Senator Jim Marzilli (D-Arlington).
The legislation promotes the modernization of the health care system by reducing waste and inefficiencies and improving quality care, setting Massachusetts as a national leader in the statewide adoption of electronic medical records and uniform billing among health care providers and insurance companies, which together could save hundreds of millions of dollars.
"This legislation is crucial to the future vitality of our health care system and our economy," Senate President Therese Murray (D-Plymouth) said. "We need to get this legislation to the governor's desk as soon as possible, and I look forward to working with our friends in the House to get this done quickly. The cost of inaction is too great." Health care costs are straining state finances and cutting into resources for education, public safety, and transportation, making it increasingly difficult for young people, families and businesses to make ends meet. This growth in health care costs is out-pacing the increase in workers' wages and the overall inflation rate.
Many changes were made to the legislation since it was first announced in March. Notably, the gift ban proposal would now require pharmaceutical representatives to be licensed by the Department of Public Health (DPH), and require pharmaceutical companies to disclose to DPH the value, nature and purpose of any exchange not prohibited by the ban. Senator Marzilli noted, "Disclosure is particularly important for increasing transparency. Patients have a right to know whether a financial relationship exists between their physician and the pharmaceutical company." Pharmaceutical companies are still allowed to educate doctors about new medical drugs and devices.
In another effort to increase transparency of costs, the legislation now requires all major health plans, regardless of their annual rates of premium increase, to break down the components of increasing costs at a public hearing conducted by the Division of Insurance and the Attorney General. The original version of the bill only required a hearing when premiums were increased by more than 7%. By not focusing solely on the worst offenders, Senator Marzilli hopes that this change will help identify "best practices" of health insurance companies that are controlling costs.
Revised language also ensures that health facilities do not charge for services associated with a serious reportable event, or "never-event" (for example, surgery performed on the wrong body part). This complements a Purchasing Reform initiative to coordinate public and private "pay-for-performance" efforts to drive quality and efficiency in the market.
Other highlights of the bill include:
- An increase in the workforce capacity of nurses and primary care physicians through loan forgiveness programs and expanded enrollment at the state medical school. The bill also allows patients to choose nurse practitioners as their primary care providers.
- A deadline of 2012 for statewide adoption of Computerized Physician Order Entry systems (CPOE).
- Authorization for the Department of Insurance to investigate the costs of medical malpractice coverage for health care providers.
The bill now goes to the House of Representatives.