Contains supplemental spending of $14.4 million related to health reform, including state agency implementation funds and public health programs.

Creates Health Safety Net Office to replace current Uncompensated Care Pool administration. The Health Safety Net pays acute care hospitals and community health centers for certain essential services provided to uninsured and underinsured Massachusetts residents.

Provides for the definitions used in the statute establishing the Health Safety Net program.

Creates a Wellness Program for MassHealth recipients to encourage healthy outcomes by authorizing incentives, including reduction of MassHealth premiums or copayments, as wellness goals are met.

Restores all MassHealth adult benefits cut in 2002, including dental, vision, chiropractic, and prosthetics, effective July 1, 2006. (Note: This section was partially superseded by a provision in the FY 2011 budget authorizing reduction of dental benefits to adults in MassHealth.)

Changes references from “Uncompensated Care Pool” to “Health Safety Net Trust Fund” and permits sharing of information about Health Safety Net enrollees.

Places in statute eligibility criteria for elderly and/or disabled special status immigrant for the MassHealth Essential program.

Expands MassHealth CHIP eligibility for children from 200% of the Federal Poverty Level to 300% of the Federal Poverty Level.

Allows for higher Medicaid reimbursement rates to hospitals that meet certain quality standards and performance benchmarks.

States that MassHealth must provide public hearing and notice before restricting eligibility or benefits.