Total Cost of Care

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

At the request of several states, the MMF has begun a project to assess and document methods that states use to set a rate of growth target for total cost of care measures. The project looks at four states as models for this activity—and assesses how they are going about this work. How are they documenting costs, projecting growth rates, and setting targets? State-to-state interaction on this topic will enhance collaborative learning for both the states involved in the project and others states considering this policy activity.

Total Cost of Care News

  • Deadline to Assess Massachusetts Health Care Cost Benchmark Approaches

    Feb 27, 2017

    Massachusetts is one of several states addressing total health care cost measures.  Since 2013, the state’s Health Policy Commission (HPC) has set an annual health care spending target based on state economic growth. A lower benchmark rate is set to take effect in 2018. The HPC will hold a hearing on the new benchmark on March 8, 2017. Helping state officials measure their state’s health … Read more

  • Continuing Federal Support for State Health Innovation: Opportunities and Challenges

    Nov 28, 2016

    The Centers for Medicare and Medicaid Services (CMS) is looking for input to support state health innovation reform—either by building on the existing State Innovation Models (SIM) initiative or other innovation models. They recently issued a request for information (RFI) regarding state-based payment and delivery system reform initiatives. The Milbank Memorial Fund responded to the … Read more

  • Update on Maryland’s All-Payer Waiver

    Sep 21, 2016

    The Milbank Memorial Fund (MMF) supports efforts for states to learn from one another about current policy developments—and one topic that states are eager to know about is ways to measure and contain health care costs. In 2014, the state of Maryland received federal approval for a groundbreaking waiver designed to cap growth in health care spending. Two years later, Maryland’s work on its … Read more