Governor Baker Issues MassHealth Budget Proposal

Governor Charlie Baker announced a “MassHealth Reform Package” Tuesday that includes revenues and savings totaling $314.6 million. The governor shared the proposal with the legislature in hopes that it will be included in the final FY2018 state budget proposal.

A summary of the proposal was released by the Executive Office of Health and Human Services, and Administration & Finance Secretary Kristen Lepore sent a letter detailing the proposal to the Joint Ways & Means Committee co-chairs.

The package does not include the commercial market restrictions previously sought by the governor such as price growth caps and caps on payments from Group Insurance Commission (GIC) plans.

“The budget proposal from Governor Baker offers many thoughtful ideas for consideration to address the FY2018 budget and MassHealth program over the long-term,” said MHA president & CEO Lynn Nicholas, FACHE. “MHA appreciates the Baker Administration’s efforts to address the financial challenges facing the state while recognizing the concerns of all healthcare stakeholders and the vital social and economic contributions of Massachusetts hospitals, health systems and other care providers.”

Nicholas continued “MHA and our members look forward to continued work with the administration, legislature and others to find a consensus path to address the Medicaid challenges facing the state and ensure fair and adequate funding for FY2018 and beyond that meets the critical needs of all parties. Furthermore, we remain committed to continuing our efforts to provide even greater value, making healthcare more effective and affordable.”