Massachusetts Takes Action to Stabilize Health Insurance for Public Employees
Amid alarming financial challenges, Massachusetts is working to secure funding for its Group Insurance Commission (GIC), which manages health insurance for 460,000 public employees and their dependents. GIC Executive Director Matthew Veno highlighted a significant budget shortfall driven by soaring provider prices and increased prescription utilization, resulting in a $20 million average monthly deficit this fiscal year.
Recent comments from the Massachusetts Health & Hospital Association (MHA) criticized the agency for lacking backup options, warning of serious financial repercussions due to disrupted payments. In light of these concerns, GIC was relying on a critical $237 million appropriation request, part of a larger $756 million spending bill filed by Governor Maura Healey.
Although the agency officially ran out of funds last Monday, the Massachusetts Legislature has since advanced a $240 million supplemental budget aimed at addressing the GIC’s financial crisis. Senate President Karen E. Spilka emphasized the importance of ensuring health insurance access for public employees. Leaders in the legislature are also strategizing broader measures to tackle rising healthcare costs, aiming to stabilize both insurers and premiums for residents across the Commonwealth.
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