The Providers’ Council is turning 50 in 2025! In celebration of this milestone, the Council will be running a series of Throwback Thursday posts throughout the year commemorating some of the Council’s most important milestones in its first 50 years. This week, the Council wants to highlight one of the most important policy milestones for the human services sector in Massachusetts, the passing of Chapter 257 in 2008.
Chapter 257 of the Acts of 2008 is the historic act that reformed how the Commonwealth funds essential social services for our most vulnerable residents. It was passed unanimously by the Legislature to address more than 20 years of chronic underfunding of the human services sector.
For 20 years (1987-2007), the Commonwealth did not adjust reimbursement rates to reflect actual costs, leaving providers underfunded for essential expenses like salaries, rent, heat, and health insurance. In 2007, the Executive Office of Health and Human Services (EOHHS) released a report highlighting a looming financial crisis for the state’s human service providers, describing a service delivery system deteriorating under inadequate reimbursement rates. In response, the Legislature unanimously passed Chapter 257 of the Acts of 2008, An Act Relative to the Rates for Human and Social Service Programs, which was signed into law by Governor Patrick on August 4, 2008.
Chapter 257 established a transparent, uniform and evidence-based process for the establishment of rates “which are reasonable and adequate to meet the costs which are incurred by efficiently and economically operated social service program providers.” The Secretary of EOHHS holds sole responsibility for setting reimbursement rates, guided by testimony received during public hearings on each proposed rate.
Chapter 257 mandates that contracts be adjusted to reflect economic conditions and requires full rate reviews at least every two years. The state must implement a Cost Adjustment Factor (CAF) to account for cost-of-living increases. The law also ensures that contracts cover all reasonable costs needed to deliver effective and efficient services.
Today, the Providers’ Council continues to advocate for increased Chapter 257 funding to ensure fair rates, competitive wages, and sustainable human services. For more information on Chapter 257 and the Providers’ Council’s advocacy, please click here.
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