Our Voice And Yours

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.