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Health plans warn state mandates and rising costs risk higher premiums for insured Massachusetts residents

5570862 · April 1, 2025
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Summary

The Massachusetts Association of Health Plans told the committee state mandates account for a significant portion of premium costs and urged lawmakers to weigh affordability when considering new mandates and benefit changes.

Liz Murphy, vice president of legislative and regulatory affairs at the Massachusetts Association of Health Plans, told the committee that health‑care spending in Massachusetts is growing rapidly and that state benefit mandates contribute materially to premium costs for fully insured residents.

Why it matters: Murphy said total state health spending is approaching $80 billion and that state‑level benefit mandates account for nearly 20% of premium spending for fully insured plans—an estimate she cited as about $2.5 billion. She urged the committee to consider affordability and spending impacts when evaluating bills that add required services, raise reimbursement or prohibit cost sharing.

Murphy noted that many Massachusetts residents are enrolled in public or self‑insured plans that are not affected by state mandates, so costs shift to the fully insured market. She asked lawmakers to consider proposals that lower overall health spending and contain costs while acknowledging the committee’s role in mandated‑benefit review.

Provenance: Murphy’s remarks are recorded beginning at transcript block 4779.165 through 4948.285.