As a program that provides publicly-funded health benefits to more than 2 million low-income children and families, seniors and people living with disabilities in Massachusetts, it is not surprising that MassHealth accounts for a large share of the state’s budget.  However, a cursory review of the MassHealth budget can be misleading because it can obscure the billions of dollars in federal revenue that the program generates for the state. This brief looks beyond the budget totals to help stakeholders better understand the actual state cost of MassHealth by accounting for the state and federal partnership that finances this program.

In state fiscal year (SFY) 2022, the state projects it will spend approximately $19.2 billion on MassHealth. This total (or “gross” amount) is approximately 36 percent of total estimated state spending for SFY 2022. However, because the federal government reimburses Massachusetts for more than half of its MassHealth spending, the state’s actual cost for MassHealth (“net of”—or minus—federal revenue) is $8.5 billion or 22 percent of the total state spending in SFY 2022. Fully understanding the actual state cost of MassHealth requires appreciating the details of the federal and other revenue sources that support this essential and comprehensive program.

Health care payers, providers, and policymakers are increasingly pursuing value-based payment (VBP) to improve the quality of care and population health while controlling rising health care costs. When implemented in Medicaid, VBP programs often include children and adults in the same model, though these models may not fully account for children’s distinct health needs.

This report seeks to inform the work of Massachusetts policymakers and stakeholders to better incorporate children’s health needs and experiences within the payment models in the MassHealth Accountable Care Organization (ACO) Program by examining lessons from states and providers throughout the country.  Based on the results of an environmental scan, including a review of peer-reviewed and gray literature and interviews with 18 subject matter experts, this report identifies and describes four main VBP approaches for delivering care to pediatric populations. The authors then synthesize key themes and lessons learned for successfully implementing VBP models for children. These findings suggest there is great opportunity for Massachusetts to serve as a leader in this field, and the report lays out a set of policy and program considerations to help Massachusetts design an approach to better serving children within and alongside the framework of the existing ACO Program. Ultimately, adapting VBP for pediatric populations requires recognition that pediatric VBP models should not be focused on short-term savings but rather on improving quality of care to support child health and long-term population health outcomes.

The fourth edition of the tracking tool provides a detailed description of key components of Chapter 224, highlighting the progress the state has made in its implementation of the law as of November 2017. This tool is designed for policymakers, advocates, and other stakeholders who wish to track when and how state leaders have addressed policy issues pertaining to Chapter 224.

This year’s release includes two distinct versions of the tracking tool: 1) An abbreviated version that focuses on progress the state has made since September 2016; and 2) A more comprehensive version which documents progress the state has made in implementing the law since its passage in 2012.

If you have any suggested additions or corrections, please email [email protected].

The third edition provides a detailed description of key components of Chapter 224, highlighting the progress the state has made in its implementation of the law as of September 2016. This tool is designed for policymakers, advocates, and other stakeholders who wish to track when and how state leaders have addressed policy issues pertaining to Chapter 224.

This year’s release includes two distinct versions of the tracking tool: 1) An abbreviated version that focuses on progress the state has made since August 2015; and 2) A more comprehensive version which documents progress the state has made in implementing the law since its passage in 2012.

This tracking tool is a living document and will be updated annually. If you have any suggested additions or corrections, please email [email protected].

Chapter 58 of the Acts of 2006—“An Act Providing Access To Affordable, Quality, Accountable Health Care”—was signed into law by Governor Mitt Romney on April 12, 2006. The groundbreaking law sought near-universal health care coverage for the residents of Massachusetts by expanding Medicaid, creating a new program of subsidized insurance, enacting changes to the health insurance market, and requiring adults to have health insurance unless an affordable option was not available.

As we mark the occasion of the 10th anniversary of Chapter 58’s enactment, this fact sheet, prepared by Kelly Love and Robert Seifert of the Center for Health Law and Economics at the University of Massachusetts Medical School, presents a summary of the law’s effects, as reported in the many studies that have focused on Massachusetts’ reform. This high-level review summarizes the findings in various categories, including insurance coverage, access to care, health care utilization, and affordability for consumers. The authors also developed a full bibliography as a companion to the fact sheet.

This updated edition of the tracking tool provides a detailed description of key components of Chapter 224, highlighting the progress the state has made in its implementation of the law as of August 2015. This tool is designed for policymakers, advocates, and other stakeholders who wish to track when and how state leaders have addressed policy issues pertaining to Chapter 224.

This tracking tool is a living document and will be updated annually. If you have any suggested additions or corrections, please email [email protected].

In this issue brief, Patricia Boozang, Deborah Bachrach and Hailey Davis of Manatt Health Solutions, review the coverage and delivery system challenges that Massachusetts could address through sections 1331 (the Basic Health Program) and 1332 (Waivers for State Innovation) of the Affordable Care Act (ACA). This brief describes the federal requirements related to these sections of the law and identifies the options the Commonwealth could pursue to advance its coverage, fiscal, and policy priorities, including: improving affordability and ease of access to coverage for low-income residents, continuing the expansion of insurance coverage to hard-to-reach populations, and evaluating and revisiting policy decisions like the individual mandate to determine the best fit for Massachusetts.

Peter Hussey, Courtney Armstrong, and Eric Schneider of the RAND Corporation conducted interviews with seven health plans and five Accountable Care Organizations (ACOs) to determine their support for innovative delivery system models including payment arrangements, program development strategies, and the criteria decide whether or not to support these programs. All interviewees are currently engaged in innovative care delivery efforts aimed at improving quality and reducing the cost of healthcare and believe that the current payment system has not moved far enough away from fee-for-service to support meaningful delivery system changes. The report suggests that a shift towards alternative payment methodologies, an alignment of incentives across payers, and a better understanding of the impact of care delivery transformation are all necessary to achieve sustainability. The authors find that the main challenge in innovation will building capacity and managing financial risk, particularly for smaller and less-experienced provider organizations.

Click here to read the report.

Megan Burns and Michael Bailit of Bailit Health Purchasing, LLC, provide a comprehensive review of payment reform in Massachusetts and, in particular, how the changing landscape is affecting safety-net providers. For this report, safety-net providers—those providers characterized by serving a high percentage of Medicaid beneficiaries and uninsured individuals—includes both community health centers and hospitals. Building off state-collected data that details the adoption of alternative payment models (APMs) by payers over the course of 2012 and 2013, the report adds qualitative findings gathered from a sample of payers and providers in mid-2014. The qualitative findings focus on the variation in characteristics of Massachusetts global payment arrangements and the impact the contracts are having on safety-net providers. The report concludes with several recommendations that payers, the state, or foundations could provide to aid safety-net providers in their preparation for payment reform.

This tracking tool provides a detailed description of key components of Chapter 224, highlighting the progress the state has made in its implementation of the law. This tool is designed for policymakers, advocates, and other stakeholders who wish to track when and how state leaders may address policy issues that pertain to Chapter 224. This tracking tool is a living document and will be updated regularly. If you have any suggested additions or corrections, please email [email protected].

This glossary, prepared by the Blue Cross Blue Shield of Massachusetts Foundation with input from the Center for Health Information and Analysis and the Health Policy Commission, defines some of the key cost containment terms necessary to understand Chapter 224 of the Acts of 2012 and the health care cost dialogue in Massachusetts.

These fact sheets highlight the major implications of Massachusetts’s 2012 health care cost containment law, Chapter 224, for four key stakeholder groups:  hospitals, health plans, consumers, and clinicians. From increased data reporting requirements for hospitals and health plans, to greater cost transparency for consumers, Chapter 224 will have significant impacts on many aspects of the Massachusetts health care system in the years ahead.

For a comprehensive overview of the entire law, see the Foundation’s report: Summary of Chapter 224 of the Acts of 2012. For an in-depth look at the Medicaid provisions in the law, see the Foundation’s report: Chapter 224 of the Acts of 2012: Implications for MassHealth.

This report, written by Robert Seifert and Rachel Gershon of the Center for Health Law and Economics at UMass Medical School, examines the key components of the most recent Massachusetts health reform law - Chapter 224 of the Acts of 2012 - as they pertain to the Massachusetts Medicaid program (“MassHealth”). Under the new law, MassHealth will be subject to the annual spending growth benchmark and will be required to implement alternative payment arrangements for most of its members, among other new requirements and responsibilities.  For a broader overview of Chapter 224 of the Acts of 2012, see the Foundation’s report: Summary of Chapter 224 of the Acts of 2012. For additional information about scheduled stakeholder meetings, grant opportunities, and other implementation updates, see the state's website, Implementing Health Care Cost Containment.

This report – written by Anna Gosline and Elisabeth Rodman of the Blue Cross Blue Shield of Massachusetts Foundation – summarizes the key components of Chapter 224 of the Acts of 2012, “An Act Improving the Quality of Health Care and Reducing Costs Through Increased Transparency, Efficiency and Innovation,” which was signed into law on August 6, 2012. The law aims to control health care cost growth through a number of mechanisms, including the creation of new commissions and agencies to monitor and enforce the health care cost growth benchmark, wide adoption of alternative payment methodologies, increased price transparency, investments in wellness and prevention, an expanded primary care workforce, a focus on health resource planning, and further support for health information technology, among others. For a more in depth look at the Medicaid provisions in the law, see the Foundation’s report: Chapter 224 of the Acts of 2012: Implications for MassHealth. For additional information about scheduled stakeholder meetings, grant opportunities, and other implementation updates, see the state's website, Implementing Health Care Cost Containment.

Report summarizing the results of a series of interviews conducted by the Center for Health Care Strategies with key Medicaid stakeholders from across the country on cutting-edge Medicaid strategies including: purchasing strategies to optimize delivery systems; payment strategies to leverage existing funds; integrated models of care to improve services for complex populations; and opportunities for improved organizational capacity.

This report by Colleen Barry of the Johns Hopkins Bloomberg School of Public Health explores opportunities and issues around integrating behavioral health care and primary care under the Affordable Care Act (ACA) and payment and delivery system reforms in Massachusetts. The report provides preliminary recommendations on how these major policy changes might be implemented with the goal of improving the coordination, quality and outcomes of mental health and addiction care in the Commonwealth.

MassHealth, the Massachusetts Medicaid program, could play a leading role in implementing dramatic changes to the health care payment system. This report outlines how so-called global payments could be used in MassHealth, which provides insurance coverage to roughly 1.2 million people in the state. Global payments have been recommended by both the Special Commission on Health System Payment and the Massachusetts Health Care Quality and Cost Council as a means of reigning in health care cost increases and improving care coordination.

The 2006 Massachusetts health care reform law included a provision to make Medicaid hospital rate increases contingent upon quality measures, including measures of the reduction of racial and ethnic disparities. To date, no other pay-for-performance programs have incorporated measures of the reduction of racial and ethnic disparities into their incentives. MMPI organized the Massachusetts Medicaid Disparities Policy Roundtable to bring together a group of experts to develop and recommend an approach to implementing the program. The Roundtable's recommendations are detailed in this white paper.