SECTION 1. Section 111 of chapter 118G of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by adding the following subsection:

(d) Notwithstanding any general or special law to the contrary, the executive office of health and human services shall reimburse, and shall require all Medicaid managed care organizations to reimburse, any licensed hospital facility operating in the commonwealth that has been designated a critical access hospital pursuant to 42 U.S.C. §1395i-4 in an amount equal to at least one hundred and one percent (101%) of the allowable Medicare costs for both inpatient and outpatient services provided to patients of such facility enrolled in the Masshealth program.

SECTION 2. Section 5 of chapter 176Q of the General Laws, as so appearing, is hereby amended by adding the following subsection:

(e)The commonwealth health insurance connector authority shall require all carriers with which it contracts to provide the commonwealth care health insurance program to reimburse any licensed hospital facility operating in the commonwealth that has been designated a critical access hospital pursuant to 42 U.S.C. §1395i-4 in an amount equal to at least one hundred and one percent (101%) of the allowable Medicare costs for both inpatient and outpatient services provided to patients of such facility enrolled in the commonwealth care program.