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2 | 2 | | HOUSE DOCKET, NO. 424 FILED ON: 1/9/2025 |
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3 | 3 | | HOUSE . . . . . . . . . . . . . . . No. 2890 |
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4 | 4 | | The Commonwealth of Massachusetts |
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5 | 5 | | _________________ |
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6 | 6 | | PRESENTED BY: |
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7 | 7 | | John J. Lawn, Jr. |
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8 | 8 | | _________________ |
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9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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10 | 10 | | Court assembled: |
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11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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12 | 12 | | An Act relative to transparency in municipal health insurance. |
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13 | 13 | | _______________ |
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14 | 14 | | PETITION OF: |
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15 | 15 | | NAME:DISTRICT/ADDRESS :DATE ADDED:John J. Lawn, Jr.10th Middlesex1/9/2025 1 of 2 |
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16 | 16 | | HOUSE DOCKET, NO. 424 FILED ON: 1/9/2025 |
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17 | 17 | | HOUSE . . . . . . . . . . . . . . . No. 2890 |
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18 | 18 | | By Representative Lawn of Watertown, a petition (accompanied by bill, House, No. 2890) of |
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19 | 19 | | John J. Lawn, Jr. relative to transparency in municipal health insurance. Public Service. |
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20 | 20 | | The Commonwealth of Massachusetts |
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21 | 21 | | _______________ |
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22 | 22 | | In the One Hundred and Ninety-Fourth General Court |
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23 | 23 | | (2025-2026) |
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24 | 24 | | _______________ |
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25 | 25 | | An Act relative to transparency in municipal health insurance. |
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26 | 26 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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27 | 27 | | of the same, as follows: |
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28 | 28 | | 1 Section 1: Section 2 of chapter 32B, as appearing in the 2022 Official Edition, is hereby |
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29 | 29 | | 2amended by inserting after line 11 the following new definition: - |
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30 | 30 | | 3 “Broker”, any person or entity that holds a broker license issued by the Commonwealth |
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31 | 31 | | 4of Massachusetts, in the service of an appropriate public authority or governmental unit to place |
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32 | 32 | | 5insurance plans with carriers, joint purchasing arrangements or third party administrators for |
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33 | 33 | | 6benefits as defined in section 3. |
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34 | 34 | | 7 Section 2: Section 2 of chapter 32B, as so appearing, is hereby amended by inserting after |
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35 | 35 | | 8line 13 the following new definition: - |
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36 | 36 | | 9 “Consultant”, any person or entity that holds an advisor license issued by the |
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37 | 37 | | 10Commonwealth of Massachusetts, in the service of an appropriate public authority or |
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38 | 38 | | 11governmental unit or employer to provide technical expertise relative to the purchase of benefits |
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39 | 39 | | 12as defined in section 3. 2 of 2 |
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40 | 40 | | 13 Section 3: Chapter 32B of the General Laws is hereby amended by inserting the |
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41 | 41 | | 14following new section: - |
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42 | 42 | | 15 Section 3B. (a) A public authority, governmental unit or employer may enter into a |
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43 | 43 | | 16contract with a consultant as defined in section 1 to provide expertise in the following areas but |
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44 | 44 | | 17not limited to, review annual renewal action, advise on insured vs self-insured plans, track |
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45 | 45 | | 18experience (claims vs premium, self-insured plan experience), complete Requests for Proposals |
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46 | 46 | | 19(RFPs) for different benefit plans (medical, pharmacy, dental, voluntary products), provide |
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47 | 47 | | 20compliance audit and updates to employer, may help educate members of PEC or IAC. Said |
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48 | 48 | | 21contract shall include an explanation of the fees and payment schedule to consultant. |
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49 | 49 | | 22 (b)A public authority, governmental unit or employer may enter into a contract with |
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50 | 50 | | 23a broker as defined in section 1 to place insurance plans with carriers. Said broker shall provide |
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51 | 51 | | 24the rate or percentage of commission relative to rate of premium, to be paid to said broker by the |
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52 | 52 | | 25insurance carrier. |
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53 | 53 | | 26 (c)A consultant shall be prohibited from acting as a broker, regardless of license, on |
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54 | 54 | | 27behalf of the same public authority, governmental unit or employer. |
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