Previous Healthcare-Cost Legislation Comes to Fruition

JUNE 11, 2025

In late 2024, State Senator Bill Driscoll Jr. (D-Milton) joined his colleagues in the Legislature in passing legislation that focused on driving down health care-related costs. The main focus of An Act Enhancing the Market Review Process (H.5159) was to expand administrative oversight of healthcare in Massachusetts, striving to limit consumer/patient cost increases, while protecting access to high-quality care.

Following its passage in December 2024, the Governor signed the legislation into law on January 8, 2025; and later on in March, the Division of Insurance (DOI) released the subsequent regulatory guidance. Specifically, the guidance instructs health insurance companies in the Commonwealth to cap the growth of copays and deductibles in order to reflect the 4.8% medical inflation rate. This copay and deductible inflation cap is set to go in affect at the start of 2026, and ultimately strives to ensure that healthcare cost increases do not outpace wage and salary increases for Massachusetts residents.

As instructed through the legislation, oversight will be carried out by government agencies like the Health Policy Commission, the Center for Health Information, and the newly-created Office of Health Resource Planning. Some of their expanded capabilities include better data collection powers, stronger enforcement tools, and required testimonies at annual cost hearings.

Moving through the entirety of the legislative process, this effort showcases the Commonwealth’s commitment to driving down healthcare costs while ensuring affordability and accessibility for all residents.

More from State House News Service and WWLP, here.

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