Annual Report on the Performance of the Massachusetts Health Care System (March 2021)

Annual Report on the performance of
the Massachusetts health care system

The Annual Report on the Performance of the Massachusetts Health Care System includes a calculation of Total Health Care Expenditures (THCE) for 2019 and a final calculation for 2018. THCE is a measure of total statewide health care spending in the Commonwealth.

The report includes information from public and private sources related to specific health care expenditures for Massachusetts residents, quality of care in the Commonwealth compared to national performance, enrollment and coverage trends, premiums and member cost-sharing, and payer use of funds.

This report will inform the Health Policy Commission’s Health Care Cost Trends Hearing, to be held later this year.

Key Findings from the Annual Report (March 2021)

    • THCE totaled $64.1 billion in 2019, or $9,294 per capita. This represented an increase of 4.3% from 2018, exceeding the health care cost growth benchmark.

    • Hospital services, physician, and pharmacy expenditures continued to be the largest service categories of THCE spending.

    • Gross pharmacy spending totaled $10.7 billion in 2019, an increase of 7.2% from 2018. Net of prescription drug rebates, pharmacy spending was $8.3 billion, an increase of 3.0% from the prior year.

    • Annual growth in commercial insurance premiums decelerated—from 5.7% in 2018 to 2.2% in 2019.

    • While average commercial member cost-sharing growth slowed from 2018 to 2019, this trend was not observed in all market sectors.

    • Among members surveyed in both commercial and MassHealth populations, patient experience ratings were highest for the Communication domain and lowest for Self-Management Support.


 Per Capita Trends March 2021

Previous CHIA Annual Reports