Delay seen for healthcare bill

Governor Mitt Romney said yesterday that Massachusetts almost certainly will miss a July 1 federal deadline for launching a new health program, a delay that could cost the state millions in federal Medicaid money.

''I don't think it's realistic to think we'll be ready on July 1. I think it's going to take some time after that," Romney said after an unrelated event at TD Banknorth Garden. ''We have an agreement that starts July 1. If we don't have something in place on July 1, there is a risk that [the federal government] will withhold or not provide funding on a day-to-day basis."

The Globe reported yesterday that negotiators from the House and Senate have made little progress in the three months since the two chambers approved competing healthcare proposals.

Federal officials have promised Massachusetts a special Medicaid waiver worth an additional $385 million a year if the state can come up with a way to cover a substantial portion of its roughly 500,000 uninsured residents. But the new plan has to be up and running by July 1, and the Romney administration says it will take months to prepare for the launch.

Romney noted yesterday that if the federal government penalizes Massachusetts for each day past the deadline, the cost to the state would be more than $1 million a day.

After a two-hour meeting with Senate President Robert E. Travaglini and House Speaker Salvatore F. DiMasi later in the day, Romney passed up an opportunity to revise his dire forecast.

''Negotiations are a process and take time, and this is a major piece of legislation, and it takes more time than average," the governor said.

Among other stumbling blocks, DiMasi has been insisting on a payroll tax that would fall most heavily on employers that don't cover their workers, a strategy that both Travaglini and Romney oppose. DiMasi also wants the final plan to cover all people who lack insurance, largely through a major expansion of Medicaid, while Travaglini favors a limited expansion and a more gradual approach to covering everyone.

Travaglini, in remarks published in the Globe yesterday, offered a pessimistic assessment of the negotiations. DiMasi, on the other hand, said he was optimistic that the two sides were ''on the verge" of a breakthrough. Yesterday, DiMasi and Travaglini declined to comment further.

Meanwhile, backers of a ballot initiative that would require universal coverage in Massachusetts say they are determined to push their proposal if the Legislature fails.

John McDonough of Health Care for All said Romney's prediction is ''probably a realistic assessment at this point."

''I wouldn't look at this as a total fait accompli, but we've been saying for some time that this is getting quite dangerous," McDonough said.

The supporters of the initiative have collected enough signatures to put it on the ballot, but they have until July to remove it if the Legislature approves an acceptable plan.

Scott Greenberger can be reached at greenberger@globe.com.