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MassHealth drives majority of FY26 spending growth, administration warns of rising costs
Summary
Administration witnesses told the Joint Committee on Ways and Means that MassHealth enrollment and acuity are major drivers of projected FY 2026 spending growth and that the program’s higher pharmacy and MCO costs are central budget pressures.
MassHealth — the commonwealth’s Medicaid program — was the largest single driver of growth in the FY 2026 House 1 spending presentation at the Ways and Means hearing on March 5.
Secretary Matt Gorkowitz and committee members repeatedly flagged MassHealth in questioning and testimony. Senate Chair Michael Rogers told members “60% of the growth in spending in FY 26 over FY 25 is just in MassHealth” and asked the administration to explain cost drivers and how caseload now differs from pre‑pandemic levels.
The administration said redetermination after the federal public‑health emergency returned the program to closer‑to‑normal eligibility…
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