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Federal Medicaid waiver renewal praised by Moore

October 1, 2008...After months of bipartisan negotiations and meetings, state and federal health officials reached an agreement this week on a change in rules that allow the Commonwealth's landmark health care reform to continue with budgetary support from the federal government. 

"Sen. Kennedy, Gov. Patrick and his administration deserve enormous credit for achieving this significant victory for Massachusetts' taxpayers," said Sen. Richard T. Moore, D-Uxbridge. "The Commonwealth can continue expanding health insurance coverage for high quality, affordable health care with the renewal of this essential partnership with the federal government," Moore explained. Sen. Moore, who is Senate Chairman of the Health Care Finance Committee, and his House counterpart, Rep. Patricia Walrath, D-Stow, both represented the Massachusetts Legislature in the waiver negotiations.

Sen. Moore was among the chief architects of the landmark Massachusetts Health Care Reform law enacted in 2006, as well as the major health quality improvement and cost containment legislation which became law this year. Moore was also regularly briefed during the federal waiver negotiations, and was a part of the final outcome reached between state and federal officials.

The $21.2 billion agreement, a $4.3 billion increase over the current waiver, fully preserves existing eligibility and benefit levels as well as federal matching funds for all programs, including Commonwealth Care at 300% of the federal poverty level. The agreement also protects federal matching funds for MassHealth waiver programs for the long-term unemployed, the disabled, and people living with HIV. It also allows the state to meet all of its health care obligations for the current fiscal year.

According to Gov. Patrick's office, key provisions of the agreement include:

The total spending authority granted by the federal government is approximately $21.2 billion, which is $4.3 billion more than in the last three year term; 

All eligibility and benefit levels are preserved. The Patrick Administration has secured the ability to claim federal financial participation (FFP) to match state spending on all programs as currently designed, including Commonwealth Care at 300% federal poverty level;

The agreement allows the state to meet all of its health care obligations for Fiscal Year 2009. In Fiscal Year 2009, the state will be able to claim $150 million for programs for which it was unable to claim matching funds for in Fiscal Year 2008;

The agreement expands the Patrick Administration's authority to bill for programs in the Safety Net Care Pool by $1 billion over the current waiver period. The Safety Net Care Pool (SNCP) represents authority for federal reimbursement for Commonwealth Care payments, Health Safety Net (the "free care pool") spending and hospital supplemental payments; 

A flexible Cap in the Safety Net Care Pool. The federal government has proposed a three-year cumulative cap on Safety Net Care Pool expenditures, instead of the current annual cap. This flexibility allows the state to meet all of its commitments for Fiscal Year 2009 and to plan ahead to meet all Fiscal Year 2010 and Fiscal Year 2011 commitments. 

Insurance enrollment has grown by nearly 440,000 since June 2006, including an increase of 72,000 whose primary coverage is through MassHealth. Overall, 1.1 million people have some level of MassHealth coverage. In addition, 176,000 individuals are newly insured through Commonwealth Care since the implementation of health care reform.

For more information on Sen. Moore's work in the legislature, please visit www.senatormoore.com.

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