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

This bill aims to reduce racial and ethnic health disparities by requiring health insurance companies in Massachusetts to pay safety net hospitals at rates comparable to their statewide average. It specifically targets acute care hospitals that treat at least 25% of their patients through Medicaid and serve communities facing health inequities due to race, ethnicity, or socioeconomic status. Under this law, commercial insurance rates are considered presumptively disapproved if they do not reimburse these designated hospitals at or above the carrier's average commercial price for both inpatient and outpatient services. Insurance carriers must annually certify to the state that they are meeting this minimum threshold for each qualifying hospital. The policy takes effect for rate years beginning on or after January 1, 2023.