Boston Globe Examines Budget Cuts’ Impact on Health Services in Massachusetts

Massachusetts eliminated health care services for "hundreds of thousands" of residents as a result of more than $500 million in budget reductions for the state's human services programs over the past two years, according to a Boston Globe analysis. The Massachusetts Legislature and acting Gov. Jane Swift (R) made "four waves" of reductions to the state budget to cover a $3 billion deficit. In 2001, the state eliminated $280 million in funds for human service programs, as well as $250 million for the state's Medicaid program, which resulted in a loss of some benefits for about 530,000 beneficiaries. The "most sweeping cut," scheduled to take effect in April 2003, will eliminate 50,000 "chronically unemployed" residents from the state's Medicaid program. In addition to the Medicaid reductions, the state eliminated funds for a tobacco cessation program that served about 25,000 state residents, health centers statewide that treated about 4,000 patients with sexually transmitted diseases and vaccination programs for about 8,000 state residents at risk for hepatitis B and about 211,000 at risk for influenza.

Effects on Providers, Residents
Some health care experts said that the budget reductions for the state's human services programs will leave Massachusetts hospitals and health centers "overburdened." Stuart Altman, a Brandeis University professor who led a one-year review of the state's heath care system, said, "We were in a fragile state before, when it came to hospitals, health centers, and payments to physicians. All this is just going to make it worse." Some advocacy groups also raised concerns that low-income and uninsured state residents will "bear the brunt" of the budget reductions. Allison Stanton, a division manager at the advocacy group Health Care for All, said, "People's health needs are not going to go away. Sure, we may save a few pennies, but the costs are going to show up somewhere." The Globe reports that the next governor will likely face a budget deficit of $1.5 billion and may have to make additional budget reductions to the state's human services programs. However, some in Massachusetts advocate "other solutions" to the state's budget deficit, such as new taxes, "spreading the cuts to the less vulnerable" and consolidation of state agencies. Charles Welch, president of the Massachusetts Medical Society, said, "This is a wake-up call for the Commonwealth. We really do have to raise money to take care" of low-income and uninsured state residents, adding, "But it's also a wake-up call for providers. We're going to have to do a better job at a lower cost" (Dembner, Boston Globe, 11/1).