Gov. Deval Patrick announced he is filing a bill that could make major changes in how health care is financed.
The law would advance an agenda to move away from the fee-for-service model of health care payments, force providers to work together to provide care and give the state more power to reject health insurance premium hikes.
In a statement, the Patrick administration said the bill would help expand the use of alternative payment methods and “significantly reduce” fee-for-service payments by the end of 2015. It would create incentives and regulatory frameworks for providers that form accountable care organizations capable of collaborating in patients’ care and sharing payments.
After the administration rejected many insurance companies’ rate increases for small businesses last year, only to see some of them successfully appeal the rejections, the bill would also give the commissioner of the Division of Insurance more specific authority to disapprove rates.
