Hospital Rate Setting Commission Proposed
SB 505, establishing the New Hampshire health services cost review commission, was introduced last Friday, heard before the Senate Insurance Committee on Tuesday, and voted out of committee on Thursday. The NH Hospital Association has been vocal in their opposition to this measure introduced by Senator Maggie Hassan (D-Exeter) to implement a new state government agency for rate setting for all community hospitals in New Hampshire, with funding for the commission to be paid by the hospitals.
As amended in committee, the new rate-setting commission will not have rate "approval" authority. Rather, it would establish "recommended" rates. This would supposedly allow the public to know what the recommended rates are versus hospital charges. Hospitals fear that starting down this path will lead to rate-setting that would apply to all payers EXCEPT Medicare and Medicaid, thus failing to address the present cost-shifting problem. NHHA also believes the cost review needs to encompass all providers and insurers, not just hospitals (which could ultimately affect home health). In summary, NHHA President Steve Ahnen says “this legislation will not help make our current health care system more efficient nor promote new, innovative models of payment and delivery of health care services. In fact, SB 505 will only add new costs and layers of a new state bureaucracy to the health care system and make it more difficult for hospitals to better serve the patients and communities that depend on them.” The bill has many supporters, however, including the Dept. of Insurance.
For a discussion on this bill between Senator Hassan and NHHA President Steve Ahnen, listen to "Regulating Hospital Rates", NHPR's The Exchange topic today.