Proposed MA State Budget Targets Medicaid Program Funding
The Massachusetts House of Ways and Means approved employer-based Medicaid program tax revenues following the Governor’s proposed state budget earlier this year.
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By - The Massachusetts House of Ways and Means Committee approved a state budget for fiscal year (FY) 2018 that funds MassHealth, the state’s Medicaid program, through new tax revenues.
The committee budget follows the one proposed by Governor Charlie Baker earlier this year. The Baker proposal called for a new employer-based fee that assists in paying for MassHealth spending.
While the House-proposed budget did not provide specifics, the lawmakers said the new fee should be determined by the Governor and the Massachusetts Department of Revenue.
The House of Ways and Means Chairman Brian Dempsey wants to take other factors into consideration before finalizing details on the fee. Dempsey also briefly cited ACA uncertainty as another cause for lack of specifics.
"We want to take a macro approach to how we proceed with health care going forward," Dempsey told reporters at the Lowell Sun. "So to embrace any policies without a comprehensive plan at this point is maybe premature, particularly with the uncertainty in Washington."
MassHealth currently occupies over a third of the state’s entire budget. Lawmakers note that enrollment in the program is growing despite slightly higher estimates from the governor’s office.
MassHealth, as with any other state Medicaid program, requires significant resources and management in order adhere to federal guidelines or risk owing significant dollar amounts to the government.
Recently, MassHealth wrongly paid $193 million in behavioral health claims due to a lack of infrastructure. Following an audit from the Office of the State Auditor, the state agency was suggested to recoup those payments.
Over 1.9 million people (or just under 20 percent of the state’s population) receive long-term health services. The final budget as proposed by Ways and Means includes $16.75 billion for MassHealth funding with the purpose of providing quality care to all state residents.
In general, the budget focuses on increases to health care funding within public health programs all with the purpose to improve access to care within the state.
As part of the proposed House budget, state lawmakers seek to increase funding to combat opioid abuse through by increasing investments in several MA Department of Public Health programs. These investments focus on acute emergency treatment, additional recovery centers for victims of substance, and post-detox skill development programs.
Budget allocations within the Department of Public Health include $156.9 million to public health hospitals serving more than 7,800 patients per year, and $131.7 million to the Bureau of Substance Addiction Services.
Other allocations in public health funding also include $31.1 million to both the Early Intervention Services and Domestic Violence and Sexual Assault Prevention programs in the state.
The committee recommended a $34.2 million increase to keep current staffing in programs within the state’s Department of Children and Families. Under the proposed budget, the lawmakers would see a total $100 million set aside for clinical services and operations dedicated to child and familial welfare.
MA’s Department of Mental Health also would receive monies upwards of $597 million to provide general funding and support for adult and adolescent psychiatric services.
Of the $528.4 million dollars state legislators want to provide to the Department of Elder Affairs, $174.2 million provides elder home care purchased services. Another $52.3 million provides funding for administration for these programs.
