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State's Health Care System Gets Shot of Stimulus Funds

12:58PM / Wednesday, March 25, 2009
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BOSTON — Some $764 million in federal stimulus funds will be injected into the state's Medicaid system as part of the nationwide effort to stablize the economy and save jobs.

"These additional FMAP funds are critically important to Massachusetts during these challenging economic times," said Gov. Deval Patrick. "Through thoughtful and strategic investments, we will protect and assist Massachusetts residents who will rely on the state for key services and supports now more than ever."

The federal American Recovery and Reinvestment Act provides a temporary boost in the Federal Medical Assistance Percentage, increasing federal matching dollars for the state's Medicaid program from 50 percent to between 56.2 percent and 61.6 percent, depending on unemployment levels in the state during the stimulus period.

Approximately $764 million in additional FMAP funding will be available to Massachusetts in fiscal years 2009 and 2010, supplementing the $1.2 billion announced in January as part of the governor's Emergency Recovery Plan.

"Shoring up our health care system is a responsible and proper use of stimulus funds," said U.S. Rep. John W. Olver, D-Amherst. "This extra infusion of capital will help to ensure that modest-income people have access to health care in these difficult economic times. In addition, these funds will directly contribute toward maintaining high-paying jobs in the health sector."

As part of the governor's budget, some $255 million will go to securing jobs and supporting health care services, including $160 million for hosptials and $45 million for nursing homes; $222 million for health care reform to maintin coverage for existing MassHeath and Commonwealth Care members; $97 million for for "safety net" initiatives, including $45.6 million toward aiding mental health clients and developmentally disabled citizens.

"By making these key investments now, we are continuing to preserve insurance coverage and eligibility for vulnerable populations to avoid capping program enrollment and eliminating services just when they are needed most," said Secretary of Health and Human Services Dr. JudyAnn Bigby.

For more information: www.mass.gov/recovery.
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