Massachusetts lawmakers have reached a compromise that aims to avoid a ballot question concerning healthcare pricing. The measure reforms the Special Commission to Review Variation in Prices among providers, adjusts MassHealth rates and calls for a new $45 million trust fund for ailing hospitals over a period of five years.

“Working across the aisle with legislative leaders to work out a consensus agreement is important to addressing the issues raised by the proposed ballot question and I am thankful for the cooperation of the Speaker and Senate President,” said Governor Baker. “I am pleased that we were able to reach these solutions together and I look forward to the Legislature taking up this matter.”

“On behalf of the House, I’d like to express my appreciation to Governor Baker and Senate President Rosenberg in working to forge consensus on this price variation agreement. It is my hope that this plan will avert a costly and divisive ballot initiative and lend assistance to our community hospitals, which serve our most underserved residents,” said House Speaker Robert A. DeLeo. “I look forward to the work of the commission.”

• The compromise is comprised of three different reforms; price variation commission, reforming “Special Commission to Review Variation in Prices among Providers” by adding the Chairs of the Joint Committee on Health Care Financing as co-chairs to the Commission;
• MassHealth rate relief, which authorizes the Secretary of Health and Human Services Marylou Sudders to expend up to $15 million in additional rates to be returned to hospitals as well as $250 million hospital assessment;
• Community hospital reinvestment trust fund, where the Executive Office of Health and Human Services (EOHHS) will administer a new $45 million trust fund over a period of five years.

The fund will be financed by redirecting $5 million of existing assessments from the CHIA appropriation to the trust fund in fiscal year 2017 and $10 million each year in fiscal years 2018 through 2021.