Bill > H1181

This bill establishes a mechanism for health insurance carriers to pay an assessment based on their net worth surplus that exceeds 550% of risk-based capital in 2023. The assessment is designed to generate $400 million, which will be equally divided between two trust funds: the Health Safety Net Trust Fund and the Medicaid Stabilization Trust Fund. The Division of Insurance, in consultation with the executive office of health and human services, will develop criteria for calculating the assessment. If carriers fail to make scheduled payments, the executive office can enforce collection through potential interest charges up to 18% annually and late fees up to 5% per month. The Medicaid Stabilization Trust Fund is created as a separate, non-budgeted revenue fund to be administered by the secretary of health and human services, with the primary goal of preventing reductions in healthcare access and reimbursement for MassHealth beneficiaries. The assessment and fund provisions are set to sunset on December 31, 2026, ensuring this is a time-limited intervention to support healthcare safety net programs by redirecting what the bill considers excessive insurance reserves.

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https://malegislature.gov/Bills/194/H1181