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HD 2665

An Act to redirect excessive health insurer reserves to support health care safety net programs

194th Legislature (2025-2026) Introduced by Danielle Gregoire

Massachusetts bill would require health insurers to redirect excess reserve funds to support safety net healthcare programs serving uninsured and underinsured patients.

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Bill Summary · HD 2665

Legislative bill overview

HD 2665 would require health insurers in Massachusetts to redirect funds from excessive reserve accounts to support safety net health care programs that serve uninsured and underinsured patients. The bill establishes parameters for determining what constitutes "excessive" reserves and mandates reallocation of those surplus funds to community health centers, hospital charity care programs, and other safety net providers.

Why is this important

Health insurers typically maintain reserve funds for financial stability and unexpected claims, but critics argue these reserves sometimes exceed prudent levels while uninsured patients struggle to access care. Redirecting excess reserves could expand access to primary care and emergency services for vulnerable populations without raising insurance premiums or requiring general tax increases.

Potential points of contention

  • Defining "excessive": Disagreement over what reserve level is reasonable—insurers argue higher reserves ensure solvency and protect against catastrophic losses, while advocates contend current levels exceed actuarial necessity
  • Market competition and rates: Insurance industry concerns that forced reallocation could reduce their financial cushion, potentially leading to higher premiums, reduced coverage options, or market exits by smaller insurers
  • Implementation and oversight: Questions about how the state will monitor compliance, calculate appropriate reserve levels, and ensure redirected funds actually reach intended safety net programs rather than creating administrative overhead

Compiled from official sources — confirm details with the bill’s official record.

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