Governor Wants $153M For Commonwealth Care As Senate Calls for Review Of Hospitals, MCOs

April 16, 2008

According to the State House News Service and other sources, Gov. Deval Patrick is asking the Legislature for more than a quarter of a billion dollars in midyear spending authorizations outlined in a mini-budget.

Of that money, $153.1 million is for unexpected costs incurred by high enrollment in the state's new subsidized care program. The mini-budget comes less than two weeks after Patrick moved to freeze fiscal 2008 state spending, to the tune of $200 million in savings over the fiscal year's final quarter, and instructed Cabinet secretaries to prepare for $150 million in midyear cutbacks if revenues faltered.

Senate Weighs In On Cost Of Healthcare

Health care spending continues to consume enormous amounts of the state budget and a Senate budget briefing document pointed to a 33 percent increase in spending stemming from the 2006 health care reform law and a 7 percent increase in the state's Medicaid system.

Furthermore, the health care cost control bill set for Senate debate Thursday underwent some substantive changes before it was released by the Senate Ways and Means Committee.

Stating that their goal is greater accountability and oversight of state spending, the bill includes a new section directing the Patrick administration's top finance and health and human services officials to conduct a comprehensive review of hospitals and managed care organizations.

As administrative overhead in health care is emerging as a new target of lawmakers, the bill also now includes a section authorizing the state attorney general to enact rules allowing anti-trust immunity to health insurers and providers in order to discuss methods to standardize or simplify administrative standards, protocols or practices with the goal of reducing costs, improving access to care, and bettering the quality of care.

Please feel free to e-mail any questions, comments or concerns. We will continue to update you as more information becomes available.

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