Last week, a federal task force expanded into Boston to ensure that individual and corporate bad actors who engage in healthcare-based criminal misconduct are rooted out. This New England strike force is putting drug companies, medical device makers, doctors and corporate executives on notice.
State House News Service reporter Ella Adams explained why the Department of Justice (DOJ) said this is happening in Massachusetts right now.
Ella Adams, SHNS: Yeah. So, at this point, the DOJ has said the move is meant to strengthen efforts being made by, and to bring more resources to the U.S. Attorney's office in the state, which officials have said has a long history of prosecuting health fraud cases. Having expanded into Boston, the feds say, is a way for them to protect Medicare and Medicaid from these criminal networks. And they're pointing to Boston as being a hub for healthcare and a place that has increased potential for exposure to fraud in that sector.
Carrie Healy, NEPM: Do Massachusetts leaders view this fraud seeking strike force like a welcome safeguard for the hub of innovation, or are they seeing this as a punitive move, singling out Boston, a Democratic stronghold?
There wasn't much talk about this among elected officials, at least publicly, that I've heard or that I've seen in other reports since the news was announced last week.
It's safe to say that Boston and Massachusetts really have seen attention coming from the federal administration over these past months, whether that be due to things like immigration policies or institutions of education. But it's not clear yet how state officials, elected or otherwise, are seeing this specific move right now.
And what about H-1b visas? Those are the temporary permits for foreign workers in specialty jobs. Massachusetts relies heavily on them, with more than 12,000 holders this year in health care and education. Those are the sectors that employ a million people and produce nearly a quarter of all wages in Massachusetts. So, Ella, are lawmakers ready for the hit that a proposed $100,000 federal fee could bring to this vital sector?
Yeah, I think that one of the biggest words that we've heard for months now is uncertainty. Lawmakers are very aware. They talk about it all the time about how uncertain things are coming out of D.C. I think, to be honest, this particular choice about the H-1b visas, it's difficult to know whether they're preparing for this specific impact yet. But economic concerns are at the top of their minds.
And we do know that partly because that's what they talk about, and partly because they do have a meeting teed up to discuss mid-year economic issues. And so, whether that specific program will come up is to be determined. So, stay tuned on that.
And we only have to stay tuned until tomorrow (Tuesday), because that's when the Healey-Driscoll Administration and Legislative leaders will gather to hear from experts about the health of the state's broader economy. So, do we know what triggered this mid-year budget and economic roundtable and our state leaders bracing for real disruption, or is this just ticking a box?
Yeah. So, this roundtable, it's something that the administration announced last week, I think it's safe to say it's fairly unusual.
It's a gathering of experts who they hadn't yet named as of late last week, at a time when the state is heading into its second quarter of fiscal year 2026. It seems that it's one of the ways that the administration is attempting to understand what is going on economically and policy wise, as a result of what's going on down in D.C.
So, I mean, it's pretty well known that Massachusetts has been dealing with the outfall of some federal policies, and they're going to have to build a budget for next fiscal year as well. With the anticipation of major changes to Medicaid and food assistance starting to really hit in 2027 and 2028.
I think what we'll be looking out for are any significant conversations or discussions actually taking place here, whether this is for show or whether it's a genuine response, to gather leaders to try to nail down potential contingency plans or things like that is to be determined at this point.
But I think it is worth noting that Massachusetts, whether it be the rising unemployment rate or the federal threats to major sectors, or even just state spending and budgeting itself, there are a lot of unknowns on the horizon. This is a difficulty in and of itself, especially when so much is on the line.
In the face of an impending federal shutdown, too.
Yes, yes, that is a part of it as well.
