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MA S851

MA S851
Addressing unfair practices of private equity in health care


summary

Introduced
02/27/2025
In Committee
02/27/2025
Crossed Over
Passed
Dead

Introduced Session

194th General Court

Bill Summary

For legislation to address unfair practices of private equity in health care. Health Care Financing.

AI Summary

This bill addresses unfair practices in health care by adding a new section to Massachusetts General Laws Chapter 111, which regulates health care services. Specifically, the bill prevents health care providers from engaging in certain billing practices that could harm patients and insurers. Under the proposed law, a health care provider cannot refuse to negotiate in good faith with public or private insurance payors and then charge extremely high rates for non-contracted services - defined as more than 200% of the payor's average contracted reimbursement rate for that same service. If a provider violates this rule, they would be considered to be engaging in an unfair or deceptive practice under Massachusetts consumer protection law (Chapter 93A), which could subject them to legal penalties. The bill appears designed to prevent predatory billing practices, particularly those potentially employed by private equity firms that may purchase medical practices and seek to maximize profits through aggressive pricing strategies.

Committee Categories

Health and Social Services

Sponsors (1)

Last Action

Accompanied S868 (on 06/16/2025)

bill text


bill summary

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bill summary

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bill summary

Document Type Source Location
State Bill Page https://malegislature.gov/Bills/194/S851
BillText https://malegislature.gov/Bills/194/S851.pdf
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