Speaker charts health care plan


BOSTON — 

House Speaker Robert DeLeo on Tuesday offered business leaders a preview of sweeping legislation aimed at reining in health care costs.

In a speech to the Greater Boston Chamber of Commerce, DeLeo said the goal of the House bill — which has not yet been introduced — would be to bring the annual growth in health care expenses more in line with Massachusetts’ overall economic growth rate of 3.7 percent.

Health care costs have been rising at an annual rate of 6.7 percent to 8 percent in recent years, DeLeo said, despite some positive efforts by insurers and providers to stem the tide.

“Costs are coming down, but we need a long-term sustainable plan,” he said. “Health care is a $70 billion industry in Massachusetts, and we need to be more thoughtful in how these dollars are spent.”

The speaker predicted the House proposal would make “aggressive” changes in disclosure requirements for the industry, give consumers and businesses more ability to make informed health care choices, and encourage employers to offer health and fitness incentives for workers. He stopped short of providing more concrete details of the House plan or setting a specific timetable for passage.

DeLeo’s speech came more than one year after Gov. Deval Patrick, in an address to the same organization, unveiled a cost containment plan that sought an end to the traditional fee-for-service approach that charges patients on the basis of the tests and procedures they undergo. Patrick’s plan called for the creation of accountable care organizations and a system of so-called global payments that are tied more closely to patient outcomes.

Patrick has said that while the landmark 2006 health care bill signed by his predecessor, Republican Mitt Romney, has made health care almost universally accessible in Massachusetts, it has not made it any more affordable. Patrick has expressed frustration with the slow progress of the bill, which legislative leaders have attributed to the complexity of the issue and a desire not to kill off jobs in the health care sector, the state’s largest employer.

DeLeo declined to say if the House plan would include global payments or other elements of the governor’s proposal, and provided only a general answer on how strong a role the state might play in regulating rates. He told reporters after his speech that the bill would contain “some government involvement,” but that the state wouldn’t be a strict watchdog over the industry.

“The speaker understands that there is a concern about going toward rate regulation,” said Rep. Steven Walsh, D-Lynn, chairman of a House panel that is drafting the legislation. “But the gentle push of government needs to continue to be involved in health care so we continue to see the market move in the direction it has moved.”

Walsh said lawmakers also wanted to help community-based hospitals by addressing the price disparity with larger hospitals that some see as a major driver of costs.

Laura Pelligrini, president of the Massachusetts Association of Health Plans, said DeLeo’s goal of tying health care spending to the state’s overall economic growth rate made sense.

“I think you want a market-based approach where we can try lots of different innovations … but at the same time hold the entire sector accountable to specifics,” she said.

DeLeo touched on several other topics during his annual speech to the chamber:

•He estimated the state’s budget gap for fiscal 2013 would be $500 million to $1 billion, but he repeated his pledge that the House budget would not include any new taxes and warned of additional spending cuts.

•He expressed concern over the impact of proposed cuts in service and fare hikes in public transportation, but said the Legislature would wait for the MBTA to complete public hearings and its own internal review of finances before deciding what — if any — help can be offered.

•He said House leaders would unveil a jobs package later this year that would focus in part on building “innovation districts” to attract firms on the cutting edge of technology. He drew applause after noting that Facebook started in Massachusetts before moving to California, and that he was “determined to make sure that the Mark Zuckerbergs of the future remain in the commonwealth.”

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