What is the Actual State Cost of MassHealth?

       

June 7, 2019 What is the Actual State Cost of MassHealth? Every month, the MassHealth program (Massachusetts' Medicaid program) provides health insurance for more than 1.8 million residents of the Commonwealth: children in low-income households; low-wage workers; elders in nursing homes; people with disabilities; and others with very low incomes who cannot afford insurance. This is more than one-quarter of the Commonwealth's population, including close to half the state's children. Not surprisingly, such a comprehensive program represents a large share of the state's budget. But how much? Since Medicaid is a partnership between state and federal governments, much of this essential health care coverage is actually paid for by the federal government. MassBudget's new fact sheet, written for the Massachusetts Medicaid Policy Institute, explains that the Fiscal Year (FY) 2019 budget includes approximately $16.7 billion for MassHealth. This total (or "gross" amount) is approximately 36 percent of total state budget appropriations. The federal government then reimburses Massachusetts for more than half this spending. After receiving these reimbursements, the state's net cost for MassHealth is $8.3 billion, 24 percent of the total net budget. Read the full MassBudget fact sheet on the actual cost of MassHealth here. ### The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts. MASSACHUSETTS BUDGET AND POLICY CENTER 15 COURT SQUARE, SUITE 700 BOSTON, MA 02108

Massachusetts Budget and Policy Center, 15 Court Square, Suite 700, Boston, MA 02108