EOHHS warns MassHealth budget faces billions in pressure as federal cuts loom

The Executive Office of Health and Human Services and MassHealth officials told the Joint Committee on Ways and Means on April 7 that Massachusetts faces mounting fiscal pressure in FY26 driven by higher caseloads, sicker members and the loss of one‑time federal supports.

Secretary Kate Walsh, the governor’s lead on the H‑1 budget for health and human services, told the committee the House 1 proposal “represents finding EOHHS at $33,300,000,000 including the MassHealth program. This is a 9% increase over FY ’25 GAA.” She said much of that increase stems from non‑discretionary items such as provider rate requirements tied to collective bargaining and mandated chapter 257 rate increases.

The budget risk is compounded by federal uncertainty, Walsh said: “Many programs across EOHHS rely heavily on federal funding… Congress is actively considering several Medicaid reform proposals that would likely translate into billions of dollars of cuts for MassHealth next year.” She warned that proposals under consideration in Washington could restrict eligibility, reduce benefits or lower federal matching and thereby increase hunger and destabilize services paid in part with federal dollars.

MassHealth Director Michael Levine told the committee the program faces four…