Massachusetts Senate Committee Proposes Health Care Spending as Part of FY02 Budget

The Massachusetts state Senate Ways and Means Committee on June 5 released a health care spending plan that would establish a bulk prescription drug buying program, the Boston Herald reports. Under the plan, the state would establish a "drug buying unit," which would be tasked with negotiating prescription drug prices for state agencies. In addition, the proposal calls for the state to apply for a Medicaid waiver that would offer discounted prescription drugs to individuals not eligible for Medicaid coverage. The Herald reports that the proposal is intended to complement the state's new Prescription Insurance Plan, which provides drug coverage for seniors (Powell, Boston Herald, 6/5). As part of the state Senate's FY 2002 budget, the proposal would appropriate $114 million for the senior prescription plan, $30 million more than what the state House has earmarked (Sutner, Worcester Telegram & Gazette, 6/6). This extra funding would restore cuts to the senior drug program made by the state House last month. The state Senate plan, however, "clash[es]" with the state House and Gov. Jane Swift (R) with regard to spending expansions. The Senate plans to spend 60% of the state's tobacco settlement on health care, but House leaders have "vowed" to maintain the current spending formula -- which calls for spending "just 30%" of the settlement and saving the remainder of the funds. Ways and Means Chair Mark Montigny (D) said, "Health care is nonnegotiable. In tough times, we still need to do the right thing in the areas that are most critical" (Klein, Boston Globe, 6/6).

Hospital Spending
The spending plan also includes $20 million for "distressed hospitals," and would increase Medicaid payments to hospitals by $35 million (Boston Herald, 6/6). In addition, the state Senate budget appropriates $171 million for the state's uncompensated free care pool and $20.2 million in grants for community health centers. The budget plan also includes funding to increase staffing at hospitals that frequently divert ambulances because of staffing shortages (Worcester Telegram & Gazette, 6/6). Ronald Hollander, president of the Massachusetts Hospital Association, said, "This is a major step forward in terms of stability and security for the hospital system." However, the Globe reports that the Senate budget plan does not include a previously discussed 50-cent-per-pack tax increase on cigarettes. While supporting the tax, Montigny said it should not be part of the budget bill, but travel through the "normal legislative process." The extra tax revenue would be used to expand health coverage for the uninsured. The full Senate is expected to debate the budget package next week (Boston Globe, 6/6).