Feds sign off on 5-year, $52B deal to overhaul MassHealth

BOSTON (AP) – The federal government has signed off on a five-year, $52.4 billion deal that Gov. Charlie Baker says will help create a more sustainable MassHealth system in Massachusetts.

MassHealth is the state’s Medicaid program.

Baker said the five-year waiver approved by the Centers for Medicare and Medicaid Services on Friday paves the way for the first major overhaul of the MassHealth program in 20 years.

The Republican governor said the overhaul includes critical changes “to promote coordinated care, hold providers accountable and offer expanded access for substance abuse disorder services driven by the opioid crisis.”

The waiver will also help the state move away from its current fee-based health care model.

Baker said that without the waiver, Massachusetts would have lost $1 billion a year in federal funds starting next July.

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