Baker: Health bill could cost state $2b by 2022
Republican legislation would cut federal aid to MA
THE REPUBLICAN HEALTH CARE BILL pending in Congress could cost Massachusetts $1 billion in federal revenue in 2020, a figure that could rise to nearly $2 billion by 2022, according to an analysis of the legislation by the Baker administration.
In a letter to the state’s congressional delegation on Tuesday, Baker extrapolated the impact on Massachusetts using a Congressional Budget Office analysis of the American Health Care Act. Baker estimated the state could lose $1 billion in federal aid in 2020, $1.3 billion in 2021, and $1.5 billion in 2022. He said the state is also at risk of losing another $425 million to $475 million in so-called 1115 payments, primarily federal matching funds for a program subsidizing health care purchases by low-income residents.“The actual experience for these and other factors is significantly dependent on how the US Department of Health and Human Services implements the legislation and unpredictable factors in the future (e.g., pharmaceutical growth).
Baker reiterated that he would use state funds to reimburse Planned Parenthood if the federal government bars Medicaid reimbursements to the organization “for health services such as cancer screenings.”