Health care spending in Massachusetts grew at its fastest pace in more than a decade in 2023, prompting renewed concern from state regulators and raising questions about where future cost-containment efforts may land.

In its newly released 2025 Health Care Cost Trends Report, the Massachusetts Health Policy Commission reported that total health care spending per resident increased 8.6 percent, far exceeding the state’s 3.6 percent cost growth benchmark. Average annual spending rose to more than $11,150 per resident, the highest benchmark overage since tracking began, aside from the post-pandemic rebound year.

The consequences are being felt by families and employers alike. Massachusetts now has the highest family health insurance costs in the country, with average annual spending exceeding $31,000 when premiums and out-of-pocket costs are combined. Out-of-pocket spending alone rose nearly 30 percent between 2019 and 2023, driven largely by higher deductibles.

The report found that spending growth continues to be driven by high prices and price variation, particularly in hospital outpatient care and prescription drugs, while primary care and community-based services account for a shrinking share of overall spending. Emergency department use remains high, with roughly 40 percent of visits considered potentially avoidable.

In response, the Health Policy Commission is calling for a recommitment to the state’s cost growth benchmark and new policy discussions in 2026 focused on price regulation, administrative burden, pharmaceutical costs, and shifting care to more appropriate, lower-cost settings.

For home care providers, the findings underscore the importance of ensuring that community-based care is recognized as part of the affordability solution — not overlooked as broader cost pressures continue to shape state policy conversations.

The full 2025 Health Care Cost Trends Report, policy recommendations, and supporting data are available on the Health Policy Commission’s website.