Massachusetts Could Regulate Reimbursement Rates for Physicians, Hospitals

Massachusetts Attorney General Martha Coakley is circulating a proposal to regulate hospitals and physicians and the rates they receive to provide care, according to a Boston Globe report.

According to the report, AG Coakley's staff has drafted legislation on the plan to contain healthcare spending. Under the new plan, providers and insurers would have to provide price information to patients before they undergo a test or treatment. The Division of Insurance and Department of Public Health would then have the power to limit the prices and market power of providers.

For the past two years, AG Coakley's staff has found wide disparities in the prices paid to providers that are not based on quality, but on market clout.  

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