An Act to reduce racial and ethnic health disparities through commercial rate equity for safety net hospitals

This bill requires insurance companies in Massachusetts to pay safety net hospitals at least as much as the state's average commercial rate for inpatient and outpatient services. It specifically targets acute care hospitals that treat at least 25% of their patients through Medicaid and serve communities facing health disparities due to race, ethnicity, or socioeconomic status. If an insurer pays these hospitals less than the statewide average, their commercial insurance rates will be automatically rejected by the state insurance commissioner unless they provide proof of higher payments. The law applies to all commercial health plans starting January 1, 2023, aiming to ensure these hospitals receive fair reimbursement to maintain access to care.