Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S644 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	SENATE DOCKET, NO. 1298 FILED ON: 1/19/2023
3	3	SENATE . . . . . . . . . . . . . . No. 644
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Barry R. Finegold
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act to redirect excessive health insurer reserves to support health care needs.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Barry R. FinegoldSecond Essex and Middlesex 1 of 2
16	16	SENATE DOCKET, NO. 1298 FILED ON: 1/19/2023
17	17	SENATE . . . . . . . . . . . . . . No. 644
18	18	By Mr. Finegold, a petition (accompanied by bill, Senate, No. 644) of Barry R. Finegold for
19	19	legislation to redirect excessive health insurer reserves to support health care needs. Financial
20	20	Services.
21	21	The Commonwealth of Massachusetts
22	22	_______________
23	23	In the One Hundred and Ninety-Third General Court
24	24	(2023-2024)
25	25	_______________
26	26	An Act to redirect excessive health insurer reserves to support health care needs.
27	27	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
28	28	of the same, as follows:
29	29	1 SECTION 1. Chapter 175 of the General Laws is hereby amended by inserting after
30	30	2section 230 the following new section:-
31	31	3 Section 231. Excessive Health Insurer Reserves
32	32	4 (a) A carrier, as defined in section 1 of chapter 176O of the General Laws, shall pay an
33	33	5assessment to support expenses associated with the delivery of health care services. Such
34	34	6assessment shall be based on the net worth surplus available to health insurance carriers
35	35	7exceeding 525 per cent of risk-based capital in accordance with criteria developed by the
36	36	8division, in consultation with the center for health information and analysis and the executive
37	37	9office of health and human services. The division shall specify by regulation the method of
38	38	10calculating the assessment, procedures for payment of the assessment, and requirements for
39	39	11submission of data by health insurers. 2 of 2
40	40	12 (b) The division shall establish by regulation the mechanism for enforcing the assessment
41	41	13liability under this section in the event that a carrier does not make a scheduled payment, but the
42	42	14division may, for the purpose of administrative simplicity, establish threshold liability amounts
43	43	15below which enforcement may be modified or waived. This enforcement mechanism may
44	44	16include assessment of interest on the unpaid liability at a rate not to exceed an annual percentage
45	45	17rate of 18 per cent and late fees or penalties at a rate not to exceed 5 per cent per month.
46	46	18 (c) The amount of the assessment established by the division of insurance in subsection
47	47	19(a) shall be sufficient, in the aggregate, to generate $300,000,000.
48	48	20 (d) The division, in consultation with the comptroller and the secretary of administration
49	49	21and finance, shall transfer $150,000,000 to the Behavioral Health Trust Fund established in
50	50	22chapter 102 of the Acts of 2021 and $150,000,000 to the COVID-19 Public Health Emergency
51	51	23Hospital Relief Trust Fund established in chapter 102 of the Acts of 2021.
52	52	24 (e) Subsection (c) shall sunset on December 31, 2025.