Under the proposed bill, rates hospitals, physicians and other providers charge to insurers could be rejected if they "increased faster than the level of medical inflation," according to the report. Additionally, the rates of insurers selling plans to employers with fewer than 50 employees, could be rejected if "premium increases that exceed one and a half times the level of medical inflation," according to the report.

The bill also includes a two-year moratorium on mandates for new health benefits and would require insurers to charge at least 10 percent less for plans with limited networks.

Gov. Patrick hopes that the bill will drive down health costs for small business and increase their ability to hire new workers.

The bill is strongly opposed by healthcare provider groups.

Read the Boston Globe's report on the Massachusetts bill to cap healthcare rates.