Relative to establishing an uncompensated health care fund to be administered by the department of insurance and assessed by a surcharge on commercial insurers, reinsurers, and trusts overseeing self-insured plans.
The implementation of SB129 is expected to have significant financial implications for the state and insurance market. The Department estimates that approximately 550,000 individuals are covered by various plans in New Hampshire, leading to potential substantial assessments to fund the initiative. The bill distinctly prohibits insurance carriers from passing the assessment costs onto consumers through premium increases or claim cost adjustments, suggesting that the financial burden may impact profit margins and could affect the viability of some insurers in the market. Furthermore, this initiative aims to tackle the uncompensated care issue, which the Department of Insurance defines as a situation where care is delivered to uninsured individuals without reimbursement.
Senate Bill 129 (SB129) proposes the establishment of an uncompensated health care fund in New Hampshire to support non-profit safety net health care providers that serve uninsured individuals and Medicaid recipients. The fund will be financed through a surcharge on commercial insurers, reinsurers, and trusts overseeing self-insured plans within the state. The bill is framed as a necessary step to ensure that safety net providers have additional resources to support their financial stability and provide necessary care to uninsured patients. The fund's oversight will be managed by the Department of Insurance, which will also be responsible for assessing the surcharge levied on these entities.
Reactions to SB129 have been mixed, as supporters advocate for the need to ensure that safety net providers are financially sustainable while providing care to uninsured populations. However, critics voice concerns over the implications of additional assessments on insurance companies which could lead to higher operational costs and might reduce the number of available health plans in New Hampshire. There is also apprehension that the bill might inadvertently discourage individuals from maintaining health insurance, exacerbating the very problem it seeks to alleviate.
Notable points of contention arise around the fiscal sustainability of the fund and its effect on the state’s insurance market. Opponents argue that while the goal of supporting uncompensated care is laudable, the method of funding through assessments without allowing for cost recovery may lead to insurance companies exiting the market, culminating in fewer choices for consumers. Furthermore, the potential implications on local taxes and municipal budgets due to its restrictive nature have raised alarms among various stakeholders, including healthcare providers and insurers. The bill’s timeline for implementation and the precise mechanisms for fund allocation and assessment determination also present significant challenges.