Sustainable Health Care Costs

Several states have adopted policies that focus on measuring and setting a growth rate target for their health care spending. By looking at cost performance across all payers in the system as a whole, or a particular set of services such as hospital care, these states hope to facilitate delivery system reform.

Rapidly rising health care costs are burdening states, employers, and families. In effort to measure and contain spending across their systems, several states have adopted policies that focus on measuring and setting a statewide growth rate target for total costs of care. By looking at cost performance across all payers, these states hope to facilitate delivery system reform.

The Milbank Memorial Fund supporting this work through its publications and by facilitating state-to-state interaction to enhance collaborative learning for states that have set up a growth spending target, as well as those that are considering this policy activity.

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