Health care costs high? Massachusetts should step in.
Health care market 'dysfunctional,' says Massachusetts attorney general, who outlines plan to have state intervene when health care providers don't bring down unwarranted prices.
Attorney General Martha Coakley says state government should have the power to temporarily intervene if¬†health¬†care¬†providers are unable to bring down costs on their own.
Coakley outlined a plan Friday to address what she called a "dysfunctional"¬†health¬†care¬†market in which costs are driven by the relative market clout of providers and not by the quality or value of the¬†care.
Under the plan, large providers would be subject to an automatic market impact review and would have until 2015 to correct "unwarranted price variations." If they are unable to do so, the state could then step in and reject contracts with¬†health¬†plans.
The attorney general said she wasn't convinced the market could correct itself on its own.
Coakley spoke at the annual conference of the Massachusetts Association of¬†Health¬†Plans.