BOSTON — Gov. Maura Healey and the Massachusetts Legislature have passed and signed another supplemental budget, this time appropriating $300 million to fund health insurance for public employees as health care costs continue to burden the state budget.

The House and Senate both passed the emergency legislation (H. 5348) during informal sessions Monday, with Healey signing it into law later that day. Lawmakers say the funding ensures the 460,000 public employees, retirees and dependents who access health care through the Group Insurance Commission (GIC) face no interruptions to their coverage. GIC is a quasi-independent state agency.

“Given that hundreds of thousands of Massachusetts residents access their health care through the Group Insurance Commission, ensuring that it is adequately funded is of vital importance,” said House Speaker Ron Mariano, D-Quincy. “I want to thank Chairman Michlewitz and my colleagues in the House, as well as our partners in the Senate, for recognizing the urgent need for this funding.”

“Health care is a fundamental promise we make to the public employees, retirees, and families who keep our Commonwealth running. Today the Legislature acted together to ensure that more than 460,000 people can continue to access the care they rely on without disruption. I am grateful to Chair Rodrigues for his leadership on this legislation, and to our partners in the House for their collaboration on this critical need,” added Senate President Karen Spilka, D-Ashland.

The $300 million in funding, which will only cover GIC costs through the end of the current fiscal year in June, will be taken out of FY26 general fund revenues.

Lawmakers cite “higher than anticipated utilization and pharmaceutical expenses,” for the soaring health care costs. This as GIC has already been looking to trim the fat, with its board voting in February to stop covering GLP-1 drugs for weight loss, saving an estimated $26 million.

“With the swift passage of this mini supplemental budget, the Legislature is prioritizing access to vital health care for state employees and doing our due diligence, paying providers on time for the health care services our residents depend on,” said Chair of the Senate Ways and Means Committee and state Sen. Michael Rodrigues, D-Westport.

Identical funding was proposed by both the House and Senate this year in their respective versions of a broader supplemental budget, which remains before the Legislature.

Total health care spending in Massachusetts per capita grew by 5.7% between 2023 and 2024, while the benchmark was set at 3.6%, a Center for Health Information and Analysis report found last month.

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