Sellers Dorsey

Special Medicaid Update: MassHealth Waiver

October 21, 2005

Recently, the Commonwealth of Massachusetts, in consultation with Sellers Feinberg, finalized its negotiations with the Centers for Medicare and Medicaid Services (CMS) regarding the extension of its MassHealth waiver. This agreement marks the end of a ten month dialogue between the Commonwealth and the federal government on a plan that enables Massachusetts to use Medicaid funds to pay for private insurance products as a way to provide coverage to the Commonwealth's uninsured individuals with incomes up to 300% of the Federal Poverty Level (FPL). In addition, the agreement allows the Commonwealth to retain $585 million annually in federal funds that otherwise would have been lost as of June 30, 2005. This Medicaid waiver is one part of an ambitious legislative package by Governor Mitt Romney to assure affordable health care coverage for all citizens of the Commonwealth. On a national level, this groundbreaking agreement marks a significant step in Medicaid reform efforts.

Throughout the past 10 months, Sellers Feinberg worked closely with the Commonwealth's Medicaid agency, the governor's office, Massachusetts providers and CMS officials in designing and negotiating a deal that met the policy and fiscal objectives of the Commonwealth. Sellers Feinberg provided strategic consultation to the Commonwealth throughout the process that included policy, technical, fiscal, and political support. As a result of this engagement, the Sellers Feinberg team has gained important insight into the components of Medicaid reform proposals and financing strategies (including certified public expenditures) that appeal most to CMS and, therefore, have the greatest possibility for approval. In addition, this process has afforded Sellers Feinberg the opportunity to develop positive working relationships with CMS officials, both at staff and leadership levels, that are key in reaching agreement and securing approval for Medicaid reform waivers.

The Sellers Feinberg team encourages you to contact Martin Sellers or Peggy Handrich of the firm with any questions regarding this recent groundbreaking agreement. The firm is currently engaged by several states to develop large-scale reform proposals and is committed to assisting governors and states meet their Medicaid policy and fiscal objectives by designing strategies that create win-win solutions with regard to Medicaid reform for all involved (states, providers, beneficiaries and the federal government).