Mass. Blues Propose Cost-Cutting Plan

Blue Cross Blue Shield of Massachusetts announced it wants to replace the system of paying providers for each visit or treatment, with flat annual payments per patient.

The company issued its statement as a reaction to a recent report of increasing healthcare costs in its state, which it commissioned from research firm InterStudy, Nashville, Tenn.

The state Blues said that despite what it considers a successful first year, the Commonwealth Care and Commonwealth Choice program of universal health care faces rising costs and higher-than-expected enrollment.