BOSTON — “CHIA’s Annual Report on the Performance of the Massachusetts Health Care System documents that health care cost growth is continuing to grow at an alarming pace. Total health care expenditures totaled $83.3 billion dollars in 2024, representing 5.7% growth from the prior year –surpassing the state’s health care cost growth benchmark of 3.6%, with real affordability ramifications for our residents and businesses. For the fifth consecutive year, pharmacy spending net of rebates was a major driver of cost growth, increasing by $1.1 billion from the previous year – a nearly 10% increase.
“These trends are not just numbers – they have real consequences for our residents. They translate to increased premiums, cost-sharing, and medical debt, creating burdens on businesses and families. Over 40% of residents report health care affordability issues, and this burden is greater for Black and Hispanic residents.
“There is clear need for cost growth moderation. When we come together as a Commonwealth to tackle these challenges, with measures like the Healey-Driscoll Administration’s newly formed Health Care Affordability Working Group, we can right-size these trends and make our world-class health care system more affordable for our residents.”
– HPC Executive Director David Seltz
Health Care Cost Growth Benchmark Hearing
The HPC is soliciting testimony from stakeholders across the marketplace about the drivers and wide-reaching impacts of health care cost growth in Massachusetts at the upcoming Hearing to Determine the 2027 Health Care Cost Growth Benchmark. The HPC hosts this annual hearing in conjunction with the members of the Joint Committee on Health Care Financing.
The HPC’s annual Health Care Cost Growth Benchmark Hearing will take place Wednesday, April 1st at 12:00 PM at the HPC’s office (50 Milk Street, Boston, MA).
This annual hearing will focus on setting the health care cost growth benchmark - a statewide target for the rate of growth of total health care expenditures - for 2027. Under the framework set forth in Chapter 224, the HPC’s Board of Commissioners may annually modify the health care cost growth benchmark for the following calendar year.
At the hearing, the HPC’s Board and members of the state Legislature’s Joint Committee on Health Care Financing will consider data and testimony regarding the state’s performance against the benchmark, which is currently set at potential gross state product (PGSP), or 3.6%.
The HPC Board will vote to set the 2027 benchmark at the board meeting on Thursday, April 16th. More information on the benchmark process is included in these FAQs and in this short explainer video.
The hearing will be livestreamed on the HPC’s website.
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