5.7%
THCE growth from 2023-2024
THCE increased to $11,663 per capita in 2024, marking the fourth year in a row the state has exceeded the 3.6% health care cost growth benchmark.
Pharmacy and Hospital Outpatient Spending
top drivers of THCE growth in 2024
In 2024, pharmacy spending grew $1.5 billion and outpatient spending grew $1.1 billion.
Nearly 5%
rise in premiums
In 2024, premiums for residents with fully insured employer-sponsored insurance grew to $683 per member per month (PMPM). Small and mid-size employers had the highest premiums at $685 and $697 PMPM, respectively.
7% to 10%
rise in cost-sharing
Cost-sharing grew across small, mid-size, large, and jumbo group employers; member cost-sharing was highest for employees at small and mid-size organizations ($117 and $92 PMPM, respectively).
Decreased enrollment
in high-deductible health plans
Enrollment in HDHPs fell in 2024 across all employer sizes except mid-size organizations, disrupting a decade-long growth trend.
Additional Information
This report primarily focuses on data through 2024; select hospital utilization and financial measures are included through June 2025, where possible.
Key findings from the March 2026 Annual Report were presented at the Health Policy Commission’s Health Care Cost Growth Benchmark Hearing on April 1, 2026. This annual public hearing solicits testimony, data, and feedback from market participants, stakeholders, and other interested parties to inform the next year’s health care cost growth benchmark. Members of the state Legislature’s Joint Committee on Health Care Financing, led by Senate Chair Cindy Friedman and House Chair John Lawn Jr., co-hosted the hearing alongside the HPC Board of Commissioners. The hearing was livestreamed by the HPC and the recording is posted on the HPC’s YouTube channel.
Previous Reports
Recommended Links
THCE, TME, and APM
CHIA monitors health care spending by public and private payers in Massachusetts using three statutorily defined metrics: Total Health Care Expenditures, Total Medical Expenses, and Alternative Payment Methods.
How Rising Health Care Costs Impact MA Residents
CHIA's special report looks at how typical MA people are affected by increasing costs, from affordability and access to household finances.
Glossary
Definitions for terms found across the CHIA website.