Final FY '06 State Budget

MassHealth

Several provisions were included in the final state budget that advocates deemed progress.

• A prohibition on "sponsor deeming" for senior and disabled legal immigrants on MassHealth. This retains coverage for 2200 or about 2/3 of the 3300 senior and disabled legal immigrants who were at the verge of losing coverage.
• Dental coverage for MassHealth moms. Restores dental benefits to pregnant women and new moms, until their child turns 3. Evidence demonstrates that maternal oral infections are often passed to infant and toddler children. MassHealth officials told advocates that implementing this benefit may be difficult.
• Smoking cessation benefits for new moms in MassHealth. The budget added benefits for pregnant women and new moms with kids up to 3. MassHealth officials told advocates that implementing this benefit may be difficult.
• Affordable premiums for the Children's Medical Security Plan. CMSP premiums have quadrupled and many low-income families face unaffordable premiums. Budget language restored affordable premiums.
• MassHealth public hearings. MassHealth continues to be required to hold a public hearing before cutting benefits and eligibility, a process the administration had tried to eliminate.

All of the above provisions were vetoed by Governor Romney, but then overridden by the legislature so they stand as written.

Other MassHealth provisions include:

• Dental care for kids. Eliminates the rule that prevented dentists from capping how many MassHealth patients they will accept. See accompanying story for details.
• Outlier Days: Effective July 1st, MassHealth will once again cover hospital stays beyond 20 days, saving the Uncompensated Care Pool around $18 million.
• Retention and funding of the 10-day bedhold
• increased funding for most elder home care programs

Prescription Advantage

Prescription Advantage must have an open enrollment period no later than May 15 th, 2006 (it is likely to be April). The budget also provides for funding and language to create a “wraparound” benefit to supplement Medicare Part D drug coverage.

Free Care/Uncompensated Care

Free Care was reduced by 12 percent. This includes a $34 million cut imposed by the Legislature in the 2006 budget, plus an unexpected $24 million hole resulting from a budget error detected in recent days by Governor Mitt Romney's administration.

The Massachusetts Hospital Association is asking the state to correct the $24 million error. The association also is seeking restoration of the $34 million through a supplemental budget request.

The Romney administration’s eventual goal is to increase the number of Massachusetts residents with MassHealth, and to ultimately require universal health insurance coverage. In this scenario, as the number of people with insurance increases, the demands on the free-care pool will decrease. They have suggested that perhaps the state can live with the $24 million mistake (hmmm…any cynics out there who wonder if this was really a mistake?).

Emergency Assistance Family Shelter

The Emergency Assistance (EA) Family Shelter override restores language and money increasing the income eligibility for family shelter from 100% to 130% of the federal poverty line, as well as language directing the Department of Transitional Assistance to place otherwise eligible families in shelter for up to 30 days while they collect needed verifications. The override also restores language providing families who go over the income limit after entering shelter with up to 6 months to secure new housing, and language requiring DTA to track and report on the families applying for emergency assistance shelter.

Emergency Aid to the Elderly, Disabled and Children (EAEDC)

The EAEDC override restores language which requires the administration to notify the legislature 60 days in advance of the implementation of any eligibility or benefit changes. Advocates believe that this protection is necessary given the Governor's assaults on this program in each of the past fiscal years.

Residential Assistance for Families in Transition (RAFT).

The Governor reduced the FY'06 funding for this homelessness prevention program by $2 million; from $5 million to $3 million. In FY'05, this program provided financial assistance to more than 1,300 families facing housing insecurities. The $2 million provided in FY'05 ran out in less than half of the fiscal year. See accompanying story for more on this program.

Massachusetts Rental Voucher Program (MRVP).

The Governor reduced the program's funding by $2 million from $26.2 million to $24.2 million and eliminated language limiting the recipient's share of rent to 40% of their income. Currently, many voucher recipients are paying up to 70% of their income for rent.

-Adapted from: Health Care For All's July 2005 e-newsletter; “ElderLaw News” e-newsletter from the Law Offices of Margolis & Associates, July 6, 2005; HealthCare for All’s MassHealth Defense Group e-mail of Monday, July 11, 2005; HealthCare for All’s MassHealth Defense Group e-mail of Thursday, July 21, 2005 “MassHealth Defense: Overrides, Court Decisions and more”; Mass. Coalition for the Homeless- “ Good News! EA & EAEDC overrides passed - We still need help with RAFT and MRVP”- e-mail of July 18, 2005; “UPDATES - MassHealth, State budget, Virtual Gateway” e-mail from Kim Simonian, 7/28/05 and “ Hospitals face reimbursement loss: State cuts and error could reduce funds for needy by $59m” By Christopher Rowland, The Boston Globe, July 29, 2005.

07/2005