Opposing Senate 531 and House 1012 An Act to Benefit the Health Safety Net Trust Fund

The Massachusetts Medical Society wishes to be recorded in opposition to Senate 531 and House 1012, identical bills intended to modify Chapter 224 of the Acts of 2012 as it applies to registration of physician organizations.

Specifically, S.531/H.1012 would impose an assessment on large independent physician organizations with more than 500 members.  Such independent physician organizations would be exempt from liability for this new assessment if their percentage of gross billed charges for services reimbursed by the state Office of Medicaid is equal to or greater than 15% of their total gross billed charges for that fiscal year.
The bill would also allow large physician organizations who contribute to the Health Safety Net to be reimbursed for uncompensated care, consistent with payments made to hospitals and community health centers.

Chapter 224 is not yet fully implemented.  The Division of Insurance (DoI) is currently seeking to define “risk bearing physician organizations” in regulations and devising a registration system for such organizations.  The MMS is actively participating in such efforts with the DoI.  The MMS feels strongly that the Division should continue with its efforts, and that Chapter 224 should be fully implemented before any further legislative changes are made to the health care payment and delivery system.