Mass., feds agree to $26.7B health care extension

BOSTON -- Massachusetts has struck a multi-billion dollar deal with the federal government that Gov. Deval Patrick says will help the state move forward with plans to overhaul the way it pays for health care coverage.

Patrick on Tuesday hailed the three-year, $26.7 billion Medicaid waiver -- representing a $5.7 billion increase over the previous waiver.

Patrick says the money will help the state preserve existing eligibility and benefit levels in Medicaid and Commonwealth Care programs.

Commonwealth Care is the subsidized health care program established by the state's landmark 2006 health care law.

The next critical step in that law is bringing costs under control to ensure the new system doesn't collapse.

During the three-year period, the state has also agreed to fully implement the federal Affordable Care Act, whose major provisions go into effect on January 1, 2014.

(Copyright 2011 by The Associated Press. All Rights Reserved.)