Employer group health plans are subject to new assessments and fees. Here is some information on two of the new state assessments.

$165,000,000 Assessment on Surcharge Payors under Section 241 of Chapter 224 (One-Time State Assessment)
Chapter 224 of the Laws of 2012, known as the Payment Reform Law (“Chapter 224”), provided for a one-time assessment of $165,000,000 to be paid by “surcharge payors” in order to fund the Massachusetts Distressed Hospital Trust Fund, the Prevention and Wellness Trust Fund, and the e-Health Institute Fund. Each surcharge payor’s percentage of this assessment is based on its proportion of payments to the Health Safety Net between December 1, 2011 and November 30, 2012. The Health Safety Net was formerly known as the Uncompensated Care Pool. This assessment from the Commonwealth is due to end in 4-years. 

Assessment for Estimated Operating Expenses of Center for Health Information and Analysis (“CHIA”) (Ongoing State Assessment)
On February 19, 2013, CHIA issued emergency regulations implementing M.G.L. c. 12C, Section 7. This chapter of the Massachusetts General Laws was added by Chapter 224 and provides that acute hospitals, ambulatory surgical centers, and surcharge payors are to be assessed for the operating expenses of CHIA. This assessment also is based on a payor’s proportion of payments to the Health Safety Net. HNE has been billed for the FY2013 assessment. This will be an annual assessment from the Commonwealth.

 Health New England (“HNE”) will be collecting and remitting the following  on behalf of our employer groups.  How we do this may differ for self-funded vs. fully-funded:

• Fully-funded employer groups: These assessments are calculated into the premium rates.
• Self-funded employer groups: These assessments will be calculated, invoiced, and remitted on your behalf by Health New England.