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Date: April 24, 1995
FOR IMMEDIATE RELEASE 
Contact:  HCFA Press Office (202) 690-6145

Secretary Shalala said that "MassHealth illustrates the administration's commitment to working with states to develop innovative programs which will provide health care to our neediest citizens."

MassHealth will provide access to health coverage to approximately 400,000 people who are currently not enrolled in Medicaid. In addition to the current Medicaid population, the demonstration will include uninsured persons, unemployed persons and low-income workers at risk of losing their insurance.

The MassHealth program specifically targets the needs of key groups within the uninsured population. The primary target groups, representing approximately 80 percent of the uninsured population below 200 percent of the federal poverty level, are low-income children, families and disabled; low-income long-term unemployed; and low-income employed.

MassHealth will provide tax credits for employers who begin to contribute at least 50 percent of the cost of purchasing a state-defined basic benefit package for their low-income employees. The program will also subsidize the employee share of the premium.

Bruce C. Vladeck, administrator of the Health Care Financing Administration, said that "MassHealth is an innovative approach to extending health care coverage which includes incentives to employers to provide private health coverage for their low-income workers."

The new program will also cover very-low income (below 133 percent of the federal poverty level) long-term unemployed persons who are not otherwise eligible for Medicaid. These individuals will receive services provided through prepaid health plans participating in the current Medicaid managed care program.

For the current Medicaid population, the state will eliminate certain categorical restrictions to coverage and streamline the eligibility process. These changes will result in coverage for more low-income children and their families, and coverage for low-income disabled persons before their medical conditions become critical.

Other components of MassHealth include maintaining the current CommonHealth Program for low-income working disabled and maintaining the Medical Security Plan for the short-term unemployed.