Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S759 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. 2482 FILED ON: 1/17/2025
3	3	SENATE . . . . . . . . . . . . . . No. 759
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 redirecting excessive health insurer reserves to support health care safety net programs.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Barry R. FinegoldSecond Essex and Middlesex 1 of 4
16	16	SENATE DOCKET, NO. 2482 FILED ON: 1/17/2025
17	17	SENATE . . . . . . . . . . . . . . No. 759
18	18	By Mr. Finegold, a petition (accompanied by bill, Senate, No. 759) 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	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE SENATE, NO. 644 OF 2023-2024.]
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Fourth General Court
26	26	(2025-2026)
27	27	_______________
28	28	An Act redirecting excessive health insurer reserves to support health care safety net programs.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 SECTION 1. Chapter 29 of the General Laws is hereby amended by inserting the
32	32	2following new section:-
33	33	3 Section 2GGGGGG. (a) There shall be a Medicaid Stabilization Trust Fund which shall
34	34	4be a separate, nonbudgeted revenue fund to be administered by the secretary of health and human
35	35	5services. There shall be credited to the fund: (i) any transfers by the executive office of health
36	36	6and human services in accordance with section 85 of chapter 118E; (ii) an amount equal to any
37	37	7federal financial participation revenues claimed and received by the commonwealth for eligible
38	38	8expenditures made from the fund; (iii) any revenue from appropriations or other money
39	39	9authorized by the general court and specifically designated to be credited to the fund; and (iv)
40	40	10interest earned on any money in the fund. Amounts credited to the fund shall be expended, 2 of 4
41	41	11without further appropriation, to prevent reductions in access to care for MassHealth
42	42	12beneficiaries and reductions in reimbursement of healthcare services reimbursed by the program.
43	43	13 (b) Money in the fund shall be expended for Medicaid payments under an approved state
44	44	14plan or federal waiver; provided, however, that all Medicaid payments from the fund shall be: (i)
45	45	15subject to the availability of federal financial participation; (ii) made only under federally-
46	46	16approved payment methods; and (iii) consistent with federal funding requirements and all
47	47	17applicable federal payment limits as determined by the secretary of health and human services.
48	48	18To accommodate timing discrepancies between the receipt of revenue and related expenditures,
49	49	19the comptroller may certify for payment amounts not to exceed the most recent revenue
50	50	20estimates as certified by the secretary of health and human services to be transferred, credited or
51	51	21deposited under this section. The secretary of health and human services shall, to the maximum
52	52	22extent possible, administer the fund to obtain federal financial participation for the expenditures
53	53	23of non-federal money from the fund. Money remaining in the fund at the end of a fiscal year
54	54	24shall not revert to the General Fund and shall be available for expenditure in subsequent fiscal
55	55	25years.
56	56	26 SECTION 3. Subsection (b) of section 66 of chapter 118E, as amended by sections 126
57	57	27to 128, inclusive, of chapter 140 of the Acts of 2024, is hereby further amended by adding after
58	58	28the words “money transferred from” the following words:- by the executive office in accordance
59	59	29with section 85 of this chapter,.
60	60	30 SECTION 4. Chapter 118E of the General Laws is hereby amended by adding the
61	61	31following new section:- 3 of 4
62	62	32 Section 85. (a) A carrier, as defined in section 1 of chapter 176O, shall pay an assessment
63	63	33to support expenses associated with health care costs covered by this chapter. Such assessment
64	64	34shall be based on the net worth surplus available to health insurance carriers exceeding 550 per
65	65	35cent of risk-based capital in calendar year 2023 in accordance with criteria developed by the
66	66	36division of insurance, in consultation with the executive office. The executive office shall specify
67	67	37by regulation the method of calculating the assessment, procedures for payment of the
68	68	38assessment and requirements for submission of data by health insurers.
69	69	39 (b) The executive office shall establish by regulation the mechanism for enforcing the
70	70	40assessment liability under this section in the event that a carrier does not make a scheduled
71	71	41payment; provided, however, that the division may, for the purpose of administrative simplicity,
72	72	42establish threshold liability amounts below which enforcement may be modified or waived; and
73	73	43provided further, that this enforcement mechanism may include assessment of interest on the
74	74	44unpaid liability at a rate not to exceed an annual percentage rate of 18 per cent and late fees or
75	75	45penalties at a rate not to exceed 5 per cent per month.
76	76	46 (c) The amount of the assessment established by the executive office pursuant to
77	77	47subsection (a) shall be sufficient, in the aggregate, to generate $400,000,000.
78	78	48 (d) The executive office, in consultation with the comptroller and the secretary of
79	79	49administration and finance, shall transfer $200,000,000 to the Health Safety Net Trust Fund
80	80	50established in section 66 and $200,000,000 to the Medicaid Stabilization Trust Fund established
81	81	51in section 2JJJJJJ of chapter 29.
82	82	52 SECTION 4. Subsection (c) of section 85 of chapter 118E of the General Laws, as
83	83	53inserted by section 3, is hereby repealed. 4 of 4
84	84	54 SECTION 5. Section 4 shall take effect on December 31, 2026.