Massachusetts Senate Budget Restores Health Funding Cut by House; Tennessee Lawmakers Consider Cuts To TennCare

The Massachusetts Senate on June 5 released a budget plan for the fiscal year beginning July 1 that would restore funding for health care programs cut under a House budget proposal, the Boston Globe reports. The Senate plan would "rely heavily" on the state's tobacco settlement fund to reverse House-approved cuts to MassHealth, the state's Medicaid program. The Senate proposal would increase Medicaid spending by 7% to a total of $5.7 billion next year, $88 million more than the House budget proposal (Klein, Boston Globe, 6/5). The extra funding would preserve Medicaid benefits for about 24,000 long-term unemployed workers who would lose their coverage under the House-passed budget. The Senate plan also would increase all Medicaid beneficiaries' copayments for prescription drugs from 50 cents to $2 per drug and would implement a "preferred" generic drug system, under which generic drugs would be promoted over brand-name treatments, to save the state $30 million to $40 million annually. The Senate plan also would provide $10 million more than the House proposal for the Prescription Advantage program, which provides medication coverage for low-income Massachusetts residents, seniors and those with disabilities (Beardsley, Boston Herald, 6/5). The Senate is scheduled to debate and vote on the budget next week, after which time House and Senate negotiators will resolve any differences in their respective plans (Boston Globe, 6/5).

TennCare Cuts Weighed
The Tennessee House Finance Committee on June 5 began to examine areas within the state budget to cut, including TennCare, the state's Medicaid managed care program, to cover a nearly $1 billion shortfall, the Chattanooga Times & Free Press reports. With lawmakers unwilling to raise taxes to cover the shortfall, "drastic cuts" to TennCare are possible, the Times & Free Press reports. For example, one budget plan would save the state $945 million in part by eliminating funding for the non-Medicaid-eligible population in TennCare (Commins, Chattanooga Times & Free Press, 6/5). However, state Rep. Chris Clem (R) said the legislative leadership does not plan to cut TennCare. "TennCare is kind of the 'Golden Child.' It will get funded," he said, adding, "We will close the parks and lay off every teacher in the state before we cut TennCare. It shouldn't be that way" (Park, Chattanooga Times & Free Press, 6/4).