Bill > H1354

This bill addresses the financial sustainability of the Health Safety Net Trust Fund by making several key changes to existing Massachusetts law. First, it increases the annual transfer to the Health Safety Net Trust Fund from $30 million to $60 million. The bill introduces a new "supplemental shortfall assessment" mechanism where, if the trust fund is projected to have a revenue shortfall in any fiscal year, 50 percent of that shortfall will be allocated to non-Medicaid managed care organizations (MCOs). The executive office of health and human services will be responsible for estimating the projected shortfall, calculating the assessment, and establishing rules for its implementation. Managed care organizations will be required to pay this supplemental assessment monthly into the trust fund, with the final amount determined within 60 days of the fiscal year's end. The bill also specifies that the secretary of health and human services must create regulations to implement this assessment, including setting assessment rates, establishing reporting requirements, creating enforcement mechanisms, and specifying how excess payments might be refunded. Additionally, the bill modifies how hospital reimbursement shortfalls will be allocated, ensuring that any shortfall is distributed proportionally based on each hospital's financial requirements, potentially using a graduated reimbursement system.

Health and Social Services

https://malegislature.gov/Bills/194/H1354