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MA H4940
Bill
Status
1/23/2026
Primary Sponsor
Joint Committee on Financial Services
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AI Summary
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Health insurance carriers with net worth surplus exceeding 550% of risk-based capital (based on 2023 levels) must pay an assessment to support health care costs under MassHealth
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Total assessment amount set at $400 million, with the Division of Insurance developing calculation criteria in consultation with the Executive Office of Health and Human Services
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Funds split evenly: $200 million to the Health Safety Net Trust Fund and $200 million to a newly created Medicaid Stabilization Trust Fund
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Creates the Medicaid Stabilization Trust Fund to prevent reductions in MassHealth beneficiary access to care and provider reimbursement rates, with funds not reverting to the General Fund at fiscal year end
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Assessment provision sunsets on December 31, 2026; enforcement includes interest up to 18% annually and late fees up to 5% per month for non-payment
Legislative Description
To redirect excessive health insurer reserves to support health care safety net programs
Last Action
Reported favorably by committee and referred to the Joint Committee on Health Care Financing
1/23/2026