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SENATE DOCKET, NO. 224 FILED ON: 1/12/2023
SENATE . . . . . . . . . . . . . . No. 811
The Commonwealth of Massachusetts
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PRESENTED BY:
John C. Velis
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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act to address the financial sustainability of the Health Safety Net.
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PETITION OF:
NAME:DISTRICT/ADDRESS :John C. VelisHampden and Hampshire 1 of 3
SENATE DOCKET, NO. 224 FILED ON: 1/12/2023
SENATE . . . . . . . . . . . . . . No. 811
By Mr. Velis, a petition (accompanied by bill, Senate, No. 811) of John C. Velis for legislation
to address the financial sustainability of the Health Safety Net. Health Care Financing.
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE SENATE, NO. 819 OF 2021-2022.]
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act to address the financial sustainability of the Health Safety Net.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Section 2OOO of Chapter 29 of the general laws is hereby amended by
2striking the third sentence in the second paragraph in its entirety and inserting in place thereof
3the following:-
4 Money from the fund shall be transferred to the Health Safety Net Trust Fund, or any
5successor fund, as necessary to provide payments to acute hospitals and community health
6centers for reimbursable health services. No less than the amounts in subsection (b) of section
7189 of chapter 149 of the general laws shall be annually transferred to the Health Safety Net
8Trust Fund.
9 SECTION 2. Section 64 of Chapter 118E of the general laws is hereby amended by
10inserting after the definition of “Resident” the following new definition:- 2 of 3
11 "Supplemental surcharge amount'', an amount equal to 50 per cent of the annual revenue
12shortfall in the Health Safety Net Trust fund as estimated by the health safety net office no later
13than 60 days after the fund fiscal year end.
14 SECTION 3. Section 66 of Chapter 118E of the general laws is hereby amended in
15subsection (b) by striking the first sentence in its entirety and inserting in place thereof the
16following:-
17 The fund shall consist of: (i) all amounts paid by acute hospitals and surcharge payors
18under sections 67 and 68; (ii) all appropriations for the purpose of payments to acute hospitals or
19community health centers for health services provided to uninsured and underinsured residents;
20(iii) any transfers from the Commonwealth Care Trust Fund, established under section 2OOO of
21chapter 29; (iv) all property and securities acquired by and through the use of monies belonging
22to the fund and all interest thereon; and (v) an amount equal to any federal financial participation
23revenues claimed and received by the commonwealth for eligible expenditures made from the
24fund.
25 SECTION 4. Section 68 of Chapter 118E of the general laws is hereby amended in
26subsection (a) by inserting in the fourth sentence following the words “total surcharge amount”
27the following:-
28 “and the supplemental surcharge amount”,
29 and by inserting in the fifth sentence following the words “total surcharge amount” each
30time it appears the following:-
31 “and the supplemental surcharge amount” 3 of 3
32 SECTION 5. Section 69 of Chapter 118E of the general laws is hereby amended by
33striking subsection (b) in its entirety and inserting in place thereof the following:-
34 (b) By April 1 of the year preceding the start of the fund fiscal year, the office shall, after
35consultation with the office of Medicaid, and using the best data available, provide an estimate of
36the projected total reimbursable health services provided by acute hospitals and community
37health centers and emergency bad debt costs, the total funding available and any projected
38shortfall after adjusting for reimbursement payments to community health centers. If a shortfall
39in revenue exists in any fund fiscal year to cover projected costs for reimbursement of health
40services, the office shall allocate half of that shortfall in a manner that reflects each hospital's
41proportional financial requirement for reimbursements from the fund, including, but not limited
42to, the establishment of a graduated reimbursement system and under any additional regulations
43promulgated by the office. The remaining half of the shortfall shall be accounted for through a
44supplemental surcharge amount that is paid in accordance with section 64 and 68.