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Understanding the Actual Cost of MassHealth to the State

Post date: 
November 19th, 2014
Article Type: 
External News Article
Article Source: 
Massachusetts Budget and Policy Center

MassBudget, in partnership with the Massachusetts Medicaid Policy Institute, is releasing a new budget brief, Understanding the Actual Cost of MassHealth to the State. This brief describes the "net" cost of MassHealth, providing a much clearer picture of the impact of MassHealth on the state budget rather than looking at gross state budget totals alone. The FY2015 budget includes approximately $14.7 billion allocated for MassHealth and health reform programs, amounting to 37 percent of the total budget. This total includes $13.7 billion for the MassHealth program (35 percent of the total budget), and an additional $1 billion for health care finance and other health spending (2 percent of the total budget). However, taking into account the very substantial amount of federal revenue that comes into the Commonwealth to offset a large share of these costs, projected to be $7.7 billion in FY2015, the net cost of MassHealth and health reform is only 23 percent of the state's net budget dollars.

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