A Massachusetts agency that oversees health insurance for 460,000 public employees, retirees and their dependents will run out of money on Monday, unable to pay suppliers.
In April, the Chief Executive Director of the Group Insurance Commission (GIC), Matthew Veno, said that the increase in the prices of suppliers and the increase in the use of prescription benefits, included in the GLP-1 weight loss medicines, had caused the commission to have a monthly deficit of $ 20 million this year.
With the fiscal exercise scheduled for June 30, the Commission has taxpayers to cover its deficit and has a appropriation application of $ 237 million pending to the legislature.
Appropriation was the sole largest application in a $ 756 million expense bill Filed in early April.
However, in an email sent to suppliers on Friday, the GIC warned that “it does not know the time that the legislature will approve the bill and when the GIC will receive the requested funds.”
However, from Monday, the payment to suppliers for the Claims of GIC members will be pending until GIC receives the additional funds or until July 1.
The payment delay does not affect any other government program, such as Masshealth or Medicare, according to email.
Providers are asked to continue to send claims to Point32health “as they usually do.”
“We are committed to managing possible interruptions and we will keep you up to date on the actions most related to this problem,” says the email. “Thank you for your understanding and cooperation for continuing to provide attention to our Point32health GIC members.”
In April, members of the commission asked if the GIC could need to adjust their 2026 tax budget application to reflect the highest tax costs in 2025. Veno said that it is not necessary to adjust.
“Although we have been constantly running a deficiency, it has been quite consistent. So we were able to build a FY ’26 budget that reflects these trends,” he said.
Veno had marked the agency’s budget deficits as a concern in January.
“This is the biggest variation we have seen in at least a decade, and this is consistent between all our plans and is mainly based on the increase in the prices of suppliers and a couple of other topics,”, ” Said at that time. He added: “We do not know where it will go. My concern is that it is a persistent and constant tendency.”
The state -home news service contributed to this report.