Bill > H1015

This bill establishes a one-time surcharge assessment, meaning a special fee, levied by the Health Policy Commission (HPC), a government agency that oversees healthcare costs, on entities referred to as "surcharge payers," which are likely healthcare providers or insurers. The total amount to be collected is $100,000,000, and each surcharge payer's share will be determined by a percentage calculated by dividing their total surplus (excess funds) as of December 31, 2014, by the combined surplus of all surcharge payers. The HPC will set this percentage by June 30, 2015, using the best available data, and can waive the assessment for payers who lack the financial resources to pay. Surcharge payers must pay the full amount by December 31, 2015, or in four equal annual installments starting on that date. The collected funds will go into the Distressed Hospital Trust Fund and will be distributed through a competitive grant process to qualified acute hospitals that are not teaching hospitals and either have relative prices below the statewide median or a public payer mix (patients covered by government programs like Medicare or Medicaid) of 51% or more. The HPC can use up to 10% of the collected funds for administrative costs, technical assistance, and program evaluation. The bill also outlines mechanisms for determining liability, including data submission requirements, and specifies that if a surcharge payer is sold, the new owner will assume the liability. If a surcharge payer fails to pay, the HPC can enforce payment through regulations, potentially including interest of up to 18% annually and late fees of up to 5% per month, and can even direct the office of Medicaid to withhold payments from the delinquent payer's claims. Furthermore, failure to provide required information or falsifying it can result in daily civil penalties of up to $5,000, with the Attorney General responsible for enforcement actions. Importantly, surcharge payers are prohibited from increasing their premiums to cover this assessment.