Bill > H1387

This bill aims to address hospital reimbursement disparities by creating a new provision for "low historic relative price hospitals" (LHRPHs), which are defined as acute care hospitals with an average statewide relative price below 0.90 across all carriers over a 5-year period, and which are either independently operated or negotiate contracts separately. The bill establishes a multi-phase rate equity target to gradually increase reimbursement for these hospitals. From 2026 to 2029, carriers cannot pay LHRPHs more than 15% below the network average; from 2029 to 2032, these hospitals will receive annual rate increases at least 2% above the healthcare cost growth benchmark; from 2032 to 2035, the increase drops to 1% above the benchmark; and from 2035 onward, the increase will match the healthcare cost growth benchmark. The Health Care Finance Commission will annually publish a list of hospitals qualifying as LHRPHs and will work to ensure more equitable reimbursement rates, potentially helping hospitals that have historically been underpaid to receive more competitive compensation.

Health and Social Services

https://malegislature.gov/Bills/194/H1387