Speaker Says State Will Tie Health Cost Increases to Economic Growth Rate

House Speaker Robert DeLeo

House Speaker Robert DeLeo (Courtesy)

House Speaker Robert DeLeo says the goal for future health care cost increases in Massachusetts will be “more in line with Gross State Product (GSP), which is 3.7%.”

DeLeo, speaking to members of the Greater Boston Chamber of Commerce, did not say if the goal should be exactly in line with the state’s economic growth rate, a little higher or a little lower. The difference could mean billions of dollars, and it’s the topic of heated behind-the-scenes debate.

Some business leaders have been pushing for GSP -2 points while others say GSP +1 point (4.7% based on the current growth rate) is more realistic. Premiums for some employers in Massachusetts are growing well below 3.7% right now, but leading economists say this trend won’t hold without major changes in the way we deliver and pay for health care. Continue reading