House lawmakers were in the process of advancing a $240 million spending bill Monday that shuttles critical cash to the state agency overseeing health insurance for public employees the same day officials expected to run out of money to pay claims.
The legislation the House released hands millions to the Group Insurance Commission — which is responsible for health insurance for 460,000 public employees, retirees, and their dependents — but is a pared-down version of a $756 million proposal Gov. Maura Healey filed in April.
A spokesperson for House Speaker Ron Mariano said his chamber has been in “close contact” with the Healey administration about funding for the Group Insurance Commission.
“Today, the House advanced $240 million for the GIC, ensuring that the commission can continue to provide insurance benefits to current and retired state employees and their families,” the spokesperson said in a statement. “The House Committee on Ways and Means will continue to work through the remainder of the governor’s supplemental budget proposal during the coming weeks.”
Officials at the commission said rising provider costs and higher demand for prescription benefits like weight loss drugs led to an average $20 million monthly deficit this fiscal year.
At a meeting last month, Group Insurance Commission Executive Director Matthew Veno said the agency wanted to “avoid disruption to our members, our health plans, and to the providers that rely on our prompt payment of claims.”
“We are likewise in the process of meeting with our health plans to make sure that we’re prepared to manage any disruption that may come along our way if there’s delayed action,” Veno said.
The bill the House was pushing forward still needs sign-off from the Senate, which was scheduled to meet Monday starting at 11 a.m.
A spokesperson for Senate President Karen Spilka did not immediately provide a response to a Herald inquiry.
Healey’s original spending bill included hundreds of millions to address “time-sensitive deficiencies,” according to a letter she penned in April.
The legislation had $189 million for child care financial assistance programs, $60 million for the Executive Office of Aging and Independence’s direct care services, and $42 million for a residential assistance program for families at risk of eviction.
“This legislation provides additional resources for our most time-sensitive deficiencies to ensure the continuation of critical state services and programs,” Healey said in the letter to lawmakers. “The administration continues to prioritize good fiscal management of the budget, which has been even more important during these times of high inflation and federal uncertainty.”
Materials from the State House News Service were used in this report.