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3/13/25, 12:00 PM - Committee Hearing: Health Care Financing, State House, Gardner Auditorium

Status: Normal
Date/Time: 3/13/25 12:00 PM
Location: State House, Gardner Auditorium
Committee: Joint Committee on Health Care Financing (JHC)
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Please be advised that, pursuant to M.G.L. Chapter 6D § 9, the Joint Committee on Health Care Financing and the Health Policy Commission will meet jointly in a public oversight hearing to consider a potential adjustment of the health care cost growth benchmark for the average growth in total health care expenditures for calendar year 2026. 

The hearing will be held at the State House in Gardner Auditorium. At the hearing, the HPC’s Board and members of the state Legislature’s Joint Committee on Health Care Financing will consider data, information, and testimony regarding whether modification of the health care cost growth benchmark is appropriate. The event will be in-person and will be livestreamed via both the HPC’s YouTube channel and the Hearings & Events section of the legislative website.

Parties wishing to provide testimony during the hearing may sign up to do so by emailing Ashley.Caunter@mass.gov. All submissions must include the sender’s full name and address. Parties who are unable to submit electronic comments should mail submissions to Ashley Caunter, Government Affairs Manager, 50 Milk Street, 8th Floor, Boston, MA 02109. All testimony and comments must be received by 5:00 PM on Friday, March 14, 2025.

The HPC does not discriminate on the basis of disability and is committed to providing accessible programs, meetings, and events. To request reasonable modification to participate in this event, please contact Aisha Anderson at Aisha.Anderson@mass.gov. Requests made after February 27, 2025, will be considered but may not be possible to fill.


Related files:
Written Testimony: Employer Coalition on Health's Testimony Before the Health Policy Commission Regarding the Healthcare Cost Benchmark

03/13/2025 - Joint Committee on Health Care Financing
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Transcript
Edited transcripts may contain spelling errors due to broadcast quality, or the technical nature of the content.
DEBORAH6.48 DEVAUX6.48 -6.48 HPC6.48 CHAIR6.48 -6.48 Welcome6.48 all.7.04 The8.4 Health8.64 Policy8.88 Commission9.36 convenes10 this10.4 hearing10.64 each11.04 year11.28 in11.6 partnership11.84 with12.4 the12.56 Joint13.04 Committee13.36 on13.36 Health14.08 Care15.22 Financing.15.22 We're15.22 excited15.46 to15.95 welcome16.18 the16.5 new16.66 members16.9 of17.23 the17.39 committee17.46 and18.27 welcome18.43 back18.82 the19.06 members19.22 who19.55 have19.7 participated19.95 in20.66 past20.9 years.21.22 I'll22.11 turn22.27 it22.5 over22.66 to22.98 the23.14 chairs23.3 shortly23.95 to24.43 introduce24.59 their25.06 members.25.3 Today,26.5 we're26.9 going27.14 to27.38 discuss27.63 the28.02 growth28.18 in28.59 health28.74 care28.98 spending29.3 over29.86 the30.11 last30.27 year30.5 using31.28 information31.6 provided32.32 by32.8 the33.04 Center33.2 for33.6 Health33.76 Information34.16 Analysis,34.72 CHIA,35.92 in36.8 their36.96 annual37.2 report,37.68 as38.64 well38.8 as39.04 cost39.28 trends39.52 across39.92 the40.32 Commonwealth40.48 of41.04 Massachusetts41.28 and42.08 the42.24 United42.4 States42.88 to43.77 assess44.09 where44.66 the44.9 health45.13 care45.53 cost45.77 growth46.17 benchmark46.41 should47.05 be47.22 set47.45 for47.7 calendar47.85 year48.34 2026.49.85
52.17 The52.17 HPC52.41 and52.9 CHIA53.13 work53.53 together53.77 to54.25 monitor54.41 health54.81 care55.13 spending55.53 growth55.93 relative56.34 to56.73 the56.9 benchmark,57.05 which58.03 is58.27 indexed58.51 to58.91 a59.15 projection59.31 of59.71 the59.87 Commonwealth's60.03 long60.83 term61.07 economic61.55 growth.62.11 Rising63.55 health64.03 care64.27 costs64.51 have64.91 a65.15 significant65.31 everyday66.19 impact66.83 on67.31 residents.67.55 And68.59 when68.83 health69.07 expenditures69.47 surpass70.19 the70.75 economy's70.91 growth71.47 rate,71.79 it72.49 exacerbates72.66 affordability73.45 challenges74.33 that74.89 residents75.13 are75.61 already75.94 facing.76.58 The77.94 Massachusetts78.17 health78.97 insurance79.22 survey79.85 found80.66 that80.97 over81.22 41%82.25 of83.3 Massachusetts83.53 residents84.41 reported85.65 health86.05 care86.37 affordability86.69 issues87.49 in87.97 2023.88.21 As89.81 health90.05 care90.29 spending90.53 grows91.09 as91.65 a91.81 portion91.97 of92.29 household92.45 income,93.01 more93.89 and94.05 more94.29 families94.53 are95.09 incurring95.25 medical95.73 debt96.21 and97.45 delay97.69 or98.17 skip98.49 needed98.89 care.99.22 These100.09 are100.33 unequal100.58 burdens101.13 as101.77 disparities102.02 across102.73 income,103.38 racial,104.02 and104.49 ethnic104.73 groups105.22 persist.105.85
107.69 The107.69 cost107.85 of108.09 living108.25 in108.58 Massachusetts108.73 is109.45 among109.61 the109.94 highest110.09 in110.41 the110.66 US.110.81 And111.65 with111.81 the112.05 second112.21 highest112.61 commercial113.09 premiums113.49 in113.97 the114.13 country,114.21 cost115.17 of115.49 living115.65 exceed116.21 income116.61 for117.09 average117.81 families118.29 across119.25 the119.65 state.119.89 The120.85 benchmark121.09 is121.65 a121.89 critical121.97 tool122.45 for122.77 the122.93 state123.09 to123.41 recognize123.65 and124.29 react124.53 to124.93 these125.09 concerning125.41 trends125.89 and126.87 to127.11 work127.19 towards127.51 more127.91 affordable,128.31 accessible,129.1 and129.75 equitable129.91 health130.54 care130.78 for131.1 all131.34 residents.131.67 At133.03 today's133.26 hearing,133.75 the134.22 HPC's134.47 board135.26 of135.59 commissioners135.67 and136.31 the136.54 Joint137.03 Committee137.43 on137.43 Health138.15 Care139.38 Financing139.38 will139.38 consider139.54 data,140.1 information,140.9 and141.46 testimony141.7 regarding142.82 whether143.22 modification143.7 of144.5 the144.66 health144.9 care145.14 cost145.38 growth145.78 benchmark146.1 is146.9 appropriate.147.06 As148.5 a148.74 reminder,148.9 the149.78 board149.94 will150.34 not150.58 take150.98 action151.22 on151.78 setting152.02 the152.34 benchmark152.5 today.153.14 The153.92 vote154.16 to154.4 establish154.72 the155.19 2026155.44 benchmark156.4 will157.12 be157.28 taken157.44 during157.75 the158.07 HPC's158.4 board159.19 meeting159.44 on160.24 Thursday,160.56 April161.44 17,161.89 which162.96 will163.19 be163.35 live163.59 streamed163.92 on164.31 the164.47 HPC's164.72 website.165.44
167.34 Today167.58 we167.58 look167.9 forward168.14 to168.38 hearing168.62 the168.94 presentations169.1 from169.9 HPC170.22 executive170.86 director,171.42 David171.9 Seltz,172.38 Lauren173.34 Peters,173.82 who174.22 is174.38 the174.62 executive174.78 director175.34 of175.66 CHIA,175.9 and176.62 the176.86 HPC's177.1 senior177.82 director178.3 of178.78 research179.02 and179.58 cost179.82 trends,180.22 Doctor181.03 David181.28 Auerbach,181.75 and182.72 senior182.96 manager,183.35 Yue183.91 Huang,184.16 with186.4 Doctor186.79 David186.79 Auerbach.187.11 We188.24 also188.4 look188.79 forward189.03 to189.44 receiving189.59 public190.16 testimony190.56 on191.44 this191.59 matter.191.83 Now193.05 it193.29 is193.45 my193.53 pleasure193.85 to194.41 introduce194.57 Senator195.05 Cindy195.61 Friedman,196.01 chair196.81 and197.13 Representative197.37 John198.17 Lawn,198.57 chairs199.29 of199.69 the199.85 Joint200.49 Committee200.97 on200.97 Health201.77 Care202.81 Financing202.81 to202.81 provide202.97 opening203.37 remarks203.85 on204.65 the204.73 benchmark204.89 modification205.69 process207.59 today.207.99 I208.87 want209.03 to209.26 particularly209.5 thank210.38 the210.63 chairs210.78 for211.26 their211.43 incredible211.67 work212.22 leading212.71 the213.1 House213.26 and213.59 Senate213.82 in214.47 passing214.71 the215.1 critical215.26 new215.82 health216.15 care216.38 legislation216.63 at217.5 the217.75 end217.82 of218.06 the218.15 year.218.31 Those219.1 new219.34 tools219.59 are219.99 really220.15 important220.47 to221.03 this221.26 conversation221.5 today222.31 as223.07 we223.23 work223.47 together223.71 to224.11 constrain224.43 the224.91 growth225.07 in225.39 health225.63 care225.87 costs.226.11 We're226.91 grateful227.23 to227.87 chairs228.11 Friedman228.59 and228.99 Lawn229.15 for229.47 their229.71 leadership229.87 and230.75 look230.99 forward231.31 to231.63 continuing231.87 to232.43 work232.59 together232.91 to233.39 identify233.63 opportunities234.27 to235.07 address235.23 our235.71 health235.87 care236.11 affordability236.75 challenges.237.63 I238.89 will239.05 now239.21 turn239.44 it239.69 over239.84 to240.09 you240.25 for240.56 opening240.89 remarks.241.37
244.41 SEN244.41 FRIEDMAN244.41 -244.41 Thank245.84 you246.17 very246.56 much.246.81 Good247.44 afternoon247.69 everyone.248.17 I'm248.65 Senator248.89 Cindy249.37 Friedman.249.76 I'm250.17 the250.33 cochair250.56 of250.89 the251.05 Joint251.44 Committee251.84 on251.84 Healthcare252.49 Financing.254.36 I254.36 want254.52 to254.68 extend254.76 a255.16 very255.32 warm255.64 welcome256.04 welcome256.52 to257.32 Chair257.96 Devaux,259 to259 David259.24 Seltz259.64 and260.04 the260.2 board260.36 and260.68 staff260.84 of261.32 the261.48 Health261.72 Policy261.96 Commission.262.52 Warm263.88 welcome264.2 to264.6 Lauren264.76 Peters265.08 and265.56 the265.72 Center265.88 for266.28 Health266.52 Information266.84 and268.76 Analysis.269.08 To272.85 the273 House273.25 and273.49 Senate273.65 members274.05 of274.37 the274.44 Joint274.61 Committee274.93 for275.32 Healthcare275.49 Financing275.97 and276.53 other276.76 legislative277 colleagues277.73 in278.13 the278.29 audience,279.73 and279.97 to279.97 all280.13 the280.37 patients,280.61 advocates,281.32 the282.21 healthcare282.37 providers,282.76 health283.4 plans,283.65 and284.05 other284.21 key284.44 stakeholders284.76 who've285.68 joined286 us286.16 today286.56 to287.36 participate287.6 in288.24 this288.48 important288.96 discussion289.6
290.08 Is290.08 there290.24 a290.48 way290.56 we290.8 can290.88 stop291.12 that?291.44 Thanks.292.64
298.01 Thank298.01 you.298.34
300.69 SPEAKER3300.69 -300.69 I'm300.69
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309.46 FRIEDMAN309.46 -309.46 And309.46 I309.69 wanna309.78 thank311.62 Chair312.18 Devaux312.18 for312.18 her312.42 very312.65 kind312.98 remarks.314.33 We316.01 are316.25 very316.41 happy316.73 to317.13 partner317.29 with318.17 the318.41 HPC318.57 always.319.37 And320.01 I321.13 think321.29 the321.53 key321.77 word322.09 in322.49 her322.73 kind324.09 words324.41 was324.73 start.325.69 It's326.81 a327.05 start.327.37 And328.24 I328.39 know328.56 that,328.63 along329.27 with329.68 my329.92 co330.15 chair,330.31 we330.8 are331.04 committed331.27 to332.48 addressing332.63 the333.19 affordability333.36 and334.48 access334.71 issues335.36 that335.83 all336.07 of336.24 our336.39 residents336.56 face337.12 in337.68 seeking337.92 healthcare.338.31 This340.25 is340.41 an340.57 important340.65 topic.341.21 It341.69 touches341.85 everyone342.33 in342.73 the342.81 Commonwealth.342.97 The344.49 health344.81 care345.53 cost346.01 growth346.49 benchmark347.05 was348.01 established348.33 under349.21 the349.45 Acts350.25 of350.57 2012,352.19 so352.43 we've352.43 been352.67 here352.9 before.353.14 As354.75 you354.99 know,355.14 and355.38 as355.63 was355.79 stated,356.02 the356.35 HPC356.58 board357.06 has357.46 to357.7 set357.79 a358.11 benchmark358.26 annually358.82 pursuant359.87 to360.35 a360.5 public360.58 hearing360.99 process361.38 and361.87 engagement362.02 with362.67 the362.82 legislature.362.99 I364.11 look364.43 forward364.75 to365.06 hearing365.23 from365.63 HPC,365.94 CHIA,367.14 and367.46 healthcare367.63 stakeholders368.4 today368.96 as369.52 we369.84 evaluate370.08 the370.64 state's371.52 healthcare372.32 spending.374.16
375.28 According375.28 to375.68 CHIA's375.84 annual376.32 report376.72 released377.2 yesterday,377.68 total378.32 healthcare378.72 expenditures379.12 increased380 by380.56 8.6%380.88 from382.8 2022383.04 to384.07 2023,384.31 which385.75 is386 more386.31 than386.56 double386.8 the387.6 cost387.75 growth388.07 benchmark,388.39 which388.95 is389.12 set389.27 at389.51 3.6%.389.68 Here's392.24 an392.56 interesting392.8 list.393.44 As394.31 a394.48 cochair394.63 of395.12 this395.27 committee,395.51 I396 have396.15 heard396.39 from397.19 providers397.44 and398 health398.24 systems398.48 that398.95 reimbursement399.45 rates399.93 are400.25 too400.41 low,400.73 from401.45 health401.69 plans402.01 saying402.41 that402.65 reimbursement402.89 rates403.53 and403.85 pharmacy404.01 spending404.57 are404.97 too405.21 high,405.45 from406.17 independent406.49 pharmacies407.13 telling407.69 me408.01 they408.17 are408.33 struggling408.49 with408.97 low409.21 reimbursement409.45 rates410.17 and410.41 clawbacks,410.65 from411.77 PBMs412.21 that412.77 say412.94 that413.1 independent413.25 pharmacies414.06 are414.62 stable414.86 and415.5 they415.74 do415.98 not416.13 claw416.38 back416.69 claims.416.94 From417.74 pharmaceutical417.98 manufacturers418.77 saying419.57 discounts419.9 to420.46 340B421.25 covered421.5 entities421.9 are422.46 too422.69 high.422.94 And423.42 from423.65 community423.9 health424.3 centers424.54 and424.86 safety425.01 net425.42 hospitals425.57 telling426.13 me426.46 they426.89 cannot426.97 operate427.61 without428.33 full428.73 340B429.77 margins429.93 and430.89 so431.13 on.431.37
432.41 Now432.65 there's432.65 a432.89 lot433.05 of433.21 nuance433.37 to433.85 these434.01 statements,434.25 and435.05 they435.29 can435.45 all435.69 be435.93 true436.17 to436.89 an437.05 extent.437.29 But438.33 it438.57 begs438.73 the439.23 question439.38 of439.87 where440.19 our440.58 healthcare440.82 dollars441.46 are441.94 really442.26 going442.58 if443.38 everyone443.71 says444.26 they444.67 do444.9 not445.14 have445.31 a446.02 big446.19 enough446.43 slice446.82 of447.14 the447.31 pie.447.46 At448.5 the448.67 end448.82 of448.99 the449.14 day,449.31 it450.02 is450.19 patients,450.5 consumers,451.14 and451.87 taxpayers452.11 who453.14 foot453.38 the453.63 bill.453.79 Healthcare454.97 premiums455.53 and456.09 cost456.25 sharing456.49 are456.97 increasing457.13 faster457.69 than458.09 wage458.33 growth.458.65 And459.29 it's459.53 getting459.77 harder460.09 every460.57 day460.81 for461.13 our461.29 residents461.53 to462.01 get462.17 the462.41 care462.57 they462.89 need.463.13 We464.01 hear464.25 about464.65 a465.05 system465.29 in465.77 crisis,467.5 we're467.74 beyond467.74 that.468.06 It469.42 is469.57 now469.74 falling469.98 apart.470.38 It471.65 is471.9 imperative472.3 for473.18 us473.34 to473.65 dig473.81 into474.13 which474.54 services474.86 and475.34 entities475.98 are476.86 siphoning477.01 the477.74 most477.9 healthcare478.13 dollars478.77 and493.63 returning493.63 the493.63 least493.63 value.493.63 As493.63 well493.63 as493.63 those493.63 that493.63 offer493.63 more493.63 value493.63 at493.63 a493.63 lower493.63 cost.493.63
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SHOW NON-ESSENTIAL DIALOGUE

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