Bill > S759

This bill establishes a mechanism to redirect excessive health insurance company reserves to support healthcare safety net programs by creating a new assessment on health insurance carriers. Specifically, carriers will be required to pay an assessment based on their net worth surplus that exceeds 550% of risk-based capital in 2023, with the goal of generating $400 million in total assessments. The executive office of health and human services will determine the precise calculation method for this assessment, and will transfer the collected funds equally ($200 million each) to two trust funds: the Health Safety Net Trust Fund and the Medicaid Stabilization Trust Fund. The Medicaid Stabilization Trust Fund will be a separate, non-budgeted fund administered by the secretary of health and human services, designed to prevent reductions in access to care for MassHealth (Massachusetts Medicaid) beneficiaries and maintain healthcare service reimbursement levels. The bill includes provisions for enforcing payment, such as potential interest charges up to 18% annually and late fees up to 5% per month, and ensures that funds can be used for Medicaid payments under federal guidelines. The assessment mechanism is set to take effect on December 31, 2026, providing time for implementation and regulatory development.

Business and Industry, Health and Social Services

https://malegislature.gov/Bills/194/S759