Section 1:  Section 13E½ of Chapter 118E of the general laws, as appearing in the 2014 official edition, is hereby amended by inserting the following clause at the end of the first paragraph:

“provided further, that acute care hospital reimbursement from managed care organizations that contract with the executive office shall for health services provided to beneficiaries under this chapter be subject to negotiation between those hospitals and managed care organizations and shall not be limited or determined through contracts between the executive office and managed care organizations.”

Section 2:  Subsection (b) of Section 13F of Chapter 118E of the general laws, as so appearing, is hereby amended by inserting at the end of the first paragraph the following new sentence:

“Provided further, the executive office shall not, in its contracts with hospitals or through any other rule or regulation, require hospitals to accept fee-for-service rates established by the office of Medicaid for non-emergency services provided to beneficiaries enrolled in managed care organizations.”