CHIA: Massachusetts health spending rose 8.6% in 2023; HPC and legislature weigh 2026 benchmark

Boston — Officials from the Health Policy Commission and the Center for Health Information and Analysis told a joint public hearing that Massachusetts’ total health care expenditures rose to $78.1 billion in 2023, an 8.6% per‑resident increase that exceeded the state’s cost‑growth benchmark of 3.6%.

The annual hearing — convened by the Health Policy Commission in partnership with the Joint Committee on Health Care Financing — brought CHIA, HPC researchers, chairs of the legislative committee and public witnesses together to review spending drivers and whether the benchmark should be modified for the 2026 measurement year. The HPC’s board will vote to set the 2026 benchmark at a public meeting scheduled for April 17, the commission said.

CHIA’s executive director Lauren Peters summarized the agency’s annual report, saying total health care expenditures equated to $11,153 per resident and that the 8.6% growth rate in 2023 was “more than double the cost growth benchmark.” Peters told the hearing that commercial spending rose 7.2% overall and that pharmacy spending (net of rebates) accelerated by 10% in 2023, accounting for more than $11 billion of statewide spending.

HPC Executive Director David Seltz described the benchmark’s legal and procedural background and the commission’s next steps. He noted the benchmark is indexed to a projection of the Commonwealth’s long‑term economic growth and that, under current law, the HPC has the discretion to modify the benchmark after year 10. Seltz emphasized the commission reviews a broad set of inputs — pricing, patient acuity, capacity, and…