For the past five years (2013 to 2017) the Massachusetts “potential gross state product” (PGSP) has also been used as the state’s “healthcare growth benchmark,” which is the statewide target that the Health Policy Commission (HPC) sets for the rate of growth of total health care expenditures in Massachusetts.
The healthcare cost growth benchmark was created through the 2012 Chapter 224 reform law, which decreed that in calendar years 2018 to 2022 the healthcare benchmark would be the PGSP minus 0.5%.
On Thursday, as directed by statute, Secretary of Administration and Finance Kristen Lepore, Senate Ways and Means Chair Karen E. Spilka (D-Ashland), and House Ways and Means Chair Brian S. Dempsey (D-Haverhill) announced that they had set the PGSP for 2018 at 3.6%, which is the same number used for 2016 and 2017. Deducting the mandated 0.5% leaves a 2018 Massachusetts healthcare growth benchmark of 3.1%.
Under Chapter 224, however, the HPC can modify that benchmark and at Wednesday’s board meeting discussed the process to do that. HPC must hold a public hearing, and if it decides to modify, it must notify the legislature which can ultimately override the HPC modification. On Wednesday, HPC voted to notify the legislature that it may potentially hold a hearing (most likely on March 1) to hear testimony on potential modification of the healthcare cost growth benchmark for Calendar Year 2018.