H1354 — An Act to address the financial sustainability of the Health Safety Net

Summary

An Act to address the financial sustainability of the Health Safety Net

Bill Text

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The bill amends existing laws to increase funding allocations to the Health Safety Net Trust Fund and introduces new assessments on managed care organizations to address revenue shortfalls.

• Section 2000 of Chapter 29 of the general laws

  Money from the fund shall be transferred to the Health Safety Net Trust Fund, or any successor fund, as necessary to provide payments to acute hospitals and community health centers for reimbursable health services. → Money from the fund shall be transferred to the Health Safety Net Trust Fund, or any successor fund, as necessary to provide payments to acute hospitals and community health centers for reimbursable health services. No less than the amounts in subsection (b) of section 189 of chapter 149 of the general laws shall be annually transferred to the Health Safety Net Trust Fund.

  This change ensures a minimum annual transfer to the Health Safety Net Trust Fund.

• Section 189 of chapter 149 of the general laws

  $30,000,000 → $60,000,000

  This increase in funding ensures more financial resources are available for health services.

• Section 64 of Chapter 118E of the General Laws

  "Supplemental shortfall assessment'', an amount equal to 50 percent of the annual revenue shortfall in the Health Safety Net Trust fund as determined by the executive office pursuant to subsection (a) of section 68A.

  This addition defines a new assessment to address revenue shortfalls.

• Section 66 of Chapter 118E of the General Laws

  all amounts paid by hospitals and managed care organizations under sections 67, 68 and 68A; → all amounts paid by hospitals and managed care organizations under sections 67, 68 and 68A;

  This change clarifies how payments are categorized under existing law.

• Section 66 of Chapter 118E of the General Laws

  by the executive office in accordance with section 68A of this chapter,

  This insertion specifies that the transfer of money must align with the new shortfall assessment procedures.

• Chapter 118E of the General Laws

  Section 68A. Supplemental MCO Assessment to Fund Shortfall ...

  This new section establishes a framework for assessing managed care organizations to address shortfalls.

• Section 69 of Chapter 118E of the General Laws

  If a shortfall in revenue exists in any fund fiscal year to cover projected costs for reimbursement of health services, the office shall allocate 50 percent of that shortfall in a manner that reflects each hospital's proportional financial requirement for reimbursements from the fund, including, but not limited to, the establishment of a graduated reimbursement system and under any additional regulations promulgated by the office. → If a shortfall in revenue exists in any fund fiscal year to cover projected costs for reimbursement of health services, the office shall allocate 50 percent of that shortfall in a manner that reflects each hospital's proportional financial requirement for reimbursements from the fund, including, but not limited to, the establishment of a graduated reimbursement system and under any additional regulations promulgated by the office.

  The change reiterates the allocation process for addressing shortfalls in reimbursement for health services.

Sponsors

• Daniel Cahill · Primary

Subjects