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 $78.1 billion dollars in 2023, representing 8.6% growth from the prior year -- far surpassing the state’s health care cost growth benchmark of 3.6%, with real ramifications for our residents and businesses. Again this year, pharmacy spending was a major driver of cost growth, increasing by $1 billion from the previous year.
“Health care affordability remains a persistent issue for Massachusetts families, with over 41% of residents reporting affordability issues -- and this burden is greater for Hispanic and black residents.
“We look forward to hearing testimony from stakeholders across the marketplace about the drivers and wide-reaching impacts of health care cost growth in Massachusetts during tomorrow’s Hearing to Determine the 2026 Health Care Cost Growth Benchmark, which the HPC is proud to host in conjunction with the members of the Joint Committee on Health Care Financing.
“The HPC’s authority to set the health care cost growth benchmark annually is an important tool in our state’s efforts to meaningfully moderate health care cost growth, and to work towards a future where our high-quality health care system in Massachusetts is affordable, equitable, and accessible to all residents.”
–HPC Executive Director David Seltz
Health Care Cost Growth Benchmark Hearing
The HPC Health Care Cost Growth Benchmark Hearing takes place tomorrow, Thursday, March 13th at 12:00 PM in Gardner Auditorium at the State House.
This annual hearing will focus on the potential modification of the health care cost growth benchmark, a statewide target for the rate of growth of total health care expenditures, for 2026. 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 on Thursday, 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 2026 benchmark at the board meeting on Thursday, April 17th. More information on the benchmark process is included in these FAQs and in this short explainer video.
The hearing will be livestreamed on the Legislature’s hearing page. A recording will be available after the hearing on the HPC YouTube page.
