Bill > H4940

This bill proposes to create a new assessment on health insurance carriers in Massachusetts to fund healthcare safety net programs. Specifically, it mandates that carriers pay an assessment based on their surplus reserves that exceed 550% of their risk-based capital in 2023, with the exact calculation and payment procedures to be determined by the Division of Insurance and the executive office of health and human services. This assessment is intended to generate $400 million in total, with $200 million being transferred to the Health Safety Net Trust Fund and another $200 million to a newly established Medicaid Stabilization Trust Fund. The Medicaid Stabilization Trust Fund, administered by the secretary of health and human services, will be used to support MassHealth beneficiaries by preventing reductions in access to care and healthcare service reimbursements, and will be funded by these transfers, federal financial participation, and other designated revenues, with any remaining funds carrying over to future fiscal years. The assessment provision is set to expire on December 31, 2026.

Health and Social Services

Joint Committee on Financial Services (Joint)

https://malegislature.gov/Bills/194/H4940