CHIA Publishes the Annual Report on the Performance of the Massachusetts Health Care System

DATE: March 13, 2023

The Center for Health Information and Analysis (CHIA) today published its Annual Report on the Performance of the Massachusetts Health Care System.

The report examines trends in costs, coverage, and quality indicators to inform policymaking. This year, the Annual Report focuses on data through 2021, during which policies to support Massachusetts residents and the health care system evolved in response to the COVID-19 pandemic. A new chapter is also included on behavioral health, pursuant to legislation passed last year—the Mental Health ABC Act: Addressing Barriers to Care—as well as a section on telehealth utilization and expenditures.

Given the significant impacts of the pandemic on the health care system in 2020 and 2021, CHIA calculated Total Health Care Expenditures (THCE) and analyzed other relevant metrics on an annualized basis over the three-year period of 2019 to 2021, to provide a more contextualized picture of health care spending and utilization.

In 2021, Massachusetts total health care expenditures (THCE) increased to $67.9 billion. From 2019 to 2021, THCE per capita increased at an annualized rate of 3.2%, accounting for depressed spending in 2020 due to constrained utilization and a rebounding in 2021. THCE per capita increased 9.0% to $9,715 per resident in 2021, following a 2.3% decline in 2020.

The Annual Report also examines hospital service utilization, private commercial member enrollment and cost-sharing, and payer and provider financial performance.

Supporting materials include a databook, datasets, and technical appendices. Read the full report and download the supporting materials at http://www.chiamass.gov/annual-report/.

Findings from the report will be presented at the Health Policy Commission’s Hearing to determine the 2024 Health Care Cost Growth Benchmark. The annual public hearing, scheduled for Wednesday, March 15, 2023, at 12:00PM, solicits data, information, and feedback from market participants, stakeholders, and other interested parties regarding whether modification of the Health Care Cost Growth Benchmark for calendar year 2024 is necessary. Members of the state Legislature’s Joint Committee on Health Care Financing, led by Senate Chair Cindy Friedman and House Chair John Lawn Jr., will co-host the hearing alongside the HPC’s Board. The hearing will be livestreamed on the Massachusetts Legislature’s webpage and the recording will be posted to the HPC’s YouTube channel following the hearing.