An Act relative to insurer responsibility to the operating budgets of health care oversight entities
By Mr. Collins, a petition (accompanied by bill, Senate, No. 840) of Nick Collins for legislation to ensure to insurer responsibility to the operating budgets of health care oversight entities by paying to the commonwealth an amount for the estimated expenses of the commission. Health Care Financing.
Under Chapter 224 of the Acts of 2012, the law that established the Center for Health Information and Analysis (CHIA) and the Health Policy Commission (HPC), hospitals, ambulatory surgical centers, and insurers shared responsibility for the funding of both agencies’ oversight budgets. Through language adopted in an outside section of the FY25 budget, insurers will now contribute through a bunded assessment of managed care organization (MCO) services.
Chapter 343 of the Acts of 2024 introduced a new funding mechanism for CHIA and the HPC, and added pharmaceutical manufacturers, pharmacy benefit managers, and non-hospital provider organizations – now also subject to CHIA and HPC oversight under Chapter 343 – to the cohort of assessed entities. However, the law removed all references to insurers – defined as surcharge payors – in the sections of the CHIA and HPC statutes that outline all healthcare entities’ assessment requirements.
This legislation would add language to both updated CHIA and HPC funding statutes relative to the surcharge payors’ responsibility to these oversight entities’ budgets. The language makes clear that surcharge payors are one of the entities that bear funding responsibility and references the MCO assessment set under Section 66 of Chapter 118E, ensuring that the intention of Chapter 224 is clear and that insurers will continue to fund the work of CHIA and the HPC if the MCO assessment is ever updated or altered.
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