Yesterday, Governor Maura Healey unveiled her administration’s FY27 state budget proposal totaling $63.4 billion. The budget includes $60.114 billion in line-item spending and $2.7 billion supported by the state’s millionaire surtax.

As widely anticipated, the state faces a significant funding shortfall due to lagging tax collections and the expected impacts on federal funding following President Trump’s One Big Beautiful Bill Act, signed in July 2024.

Key highlights relevant to home-based care:

• 3% increase to overall Health and Human Services line items
• $5.197 billion for the MassHealth Senior Care line item ($80.8M above projected FY26 spending)
• $298.98 million for Department of Aging and Independence Home Care Services ($18.6M above FY26)
• Maintains existing intake management for new Home Care Program enrollment
• Moratorium on rate increases for MassHealth programs
• Proposal to convene workgroups to identify savings in PCA, Adult Foster Care, and Adult Day Health

Executive Office of Health and Human Services Secretary Kiame Mahaniah also briefed stakeholders on the agency budget and outlook. While home care and hospice line items increase year-over-year, they do not signal new rate increases. Instead, they reflect higher utilization and rate adjustments that took effect in January 2025.

The Governor’s proposal emphasizes cost containment and sustainability, directing agencies and workgroups to identify savings and program reforms. This work will intensify in the year ahead, as Fiscal Year 2028 is expected to bring deeper challenges tied to federal funding reductions.