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S 840

Relates to providing additional reimbursement to school districts for expenses incurred as a result of an influx of migrant students entering the schools of the districts

2025 Regular Session Introduced by George Borrello and 2 co-sponsors

Requires surcharge payors to cover 30–40% of the operating budgets for MA health-care overseers (HP Commission and CHIA), with floors at current revenue and specified deductions.

REFERRED TO EDUCATION
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Bill Summary · S 840

Summary — S.840 (2025): Insurer responsibility to operating budgets of health care oversight entities

Note: the bill text filed as Senate No. 840 (presented by Sen. Nick Collins, Jan. 17, 2025) concerns funding assessments for state health care oversight entities. The metadata supplied with the request included an unrelated title about reimbursement to school districts for migrant students; that title does not match the bill language summarized below.

Purpose

To clarify and adjust which health‑system actors are assessed to fund the operating budgets (and certain transfers) of Massachusetts health care oversight bodies — specifically the Health Policy Commission (chapter 6D) and the Center for Health Information and Analysis (CHIA, chapter 12C) — and to set a required range (floor and ceiling) for the share to be borne by “surcharge payors” (insurers/payors).

Key provisions

  • Amends chapter 6D, section 6(b):
    • Explicitly lists entities required to pay estimated commission expenses: acute hospitals, ambulatory surgical centers, non‑hospital provider organizations, pharmaceutical manufacturing companies, pharmacy benefit managers (PBMs), and surcharge payors.
  • Adds clause 6(g) to chapter 6D:
    • Requires that the assessed amount for surcharge payors be at least 30% and at most 40% of the amount appropriated by the General Court for the commission’s expenses, after subtracting (i) filing fees, (ii) commission‑generated fees/charges, and (iii) federal matching revenues (including retroactive receipts).
    • Authorizes assessment and transfer under sections 64 and 66 of chapter 118E.
    • Requires that the amount not be less than the Health Policy Commission’s current revenue amount.
  • Amends chapter 12C, section 7(b):
    • Mirrors the list of assessed entities and specifies the assessed amounts may include transfers to the Community Hospital Reinvestment Trust Fund (section 2TTTT of chapter 29).
  • Adds clause 7(g) to chapter 12C:
    • Mirrors the 30–40% surcharge payor requirement for CHIA’s appropriations and the same deductions (filing fees, CHIA report fees, federal matching revenues).
    • Assessment/transfer mechanism under chapters referenced above; floor not less than CHIA’s revenue amount.

Who is affected

  • Directly: insurers and other “surcharge payors,” hospitals, ambulatory surgical centers, non‑hospital provider organizations, pharmaceutical manufacturers, and PBMs.
  • Indirectly: state oversight entities (Health Policy Commission, CHIA, and recipients of the Community Hospital Reinvestment Trust Fund), health care providers and payors who may experience adjusted assessment obligations, and potentially consumers if assessments influence costs.

Potential impacts

  • Establishes a mandatory 30–40% share of oversight budgets to be borne by surcharge payors, which could increase assessments on insurers/payors and shift funding burdens among health sector participants.
  • Provides more predictability/limits (floor and ceiling) for the portion assigned to surcharge payors while preserving other revenue sources (fees, federal matches).
  • May increase operating revenues for the Health Policy Commission and CHIA and stabilize funding for mandated functions and the Community Hospital Reinvestment Trust Fund.

Procedural status / timeline (as provided)

  • Filed: Jan 17, 2025 (Senate Docket No. 1933)
  • Introduced/Read twice: Mar 4, 2025
  • Referred to committee(s): records show referral actions to the Committee on Health Care Financing and to the Committee on Commerce, Science, and Transportation; also multiple “Referred to Education” entries in the supplied metadata (likely inconsistent).
  • Hearing scheduled: June 2, 2025, 11:00 AM–3:00 PM, Gardner Auditorium.

If you want, I can:
- Prepare a short fiscal note summarizing likely revenue shifts and potential dollar impacts, or
- Draft plain‑language talking points targeted to hospitals, insurers, or legislators.

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

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